XL India Business Services Interview Questions and Answers

Deferred revenue expenditure is an expense that is incurred in one accounting period but is recognized over a period of time.

• Deferred revenue expenditure is an expense that benefits multiple accounting periods.

• It is recorded as an asset on the balance sheet and amortized over the periods that benefit from it.

• Journal entry for deferred revenue expenditure involves debiting the asset account and crediting the expense acc...read more

Prepayment is a payment made in advance before the actual due date.

• Prepayment is a payment made before the scheduled due date of a financial obligation.

• It is often made to reduce the total outstanding balance and save on interest costs.

• Common examples include prepaying a mortgage, rent, or utility bills.

• Prepayments can also be made towards loans or credit card balances.

IFRS 16 and 17 are accounting standards related to lease accounting and insurance contracts, respectively.

• IFRS 16 deals with lease accounting and requires lessees to recognize assets and liabilities for all leases with a term of more than 12 months.

• IFRS 17 focuses on insurance contracts and aims to provide more transparent and useful information about an insurer's financial position and performance.

• Both standards have ...read more

Amortization is the process of spreading out the cost of an intangible asset over its useful life.

• Amortization is a method used to allocate the cost of intangible assets over time.

• It is similar to depreciation for tangible assets, but applies to intangible assets like patents, copyrights, and trademarks.

• The amortization expense is recorded on the income statement and reduces the asset's value on the balance sheet.

• The f...read more

Cash flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

• It provides information about the cash generated and used during a specific period.

• It consists of three sections: operating activities, investing activities, and financing activities.

• Operating activities include cash flows from day-to-day business operations.

• Investing activities incl...read more