AM - Finance & Accounts Interview Questions and Answers

ITIL is a framework for IT service management that provides best practices for aligning IT services with business needs.

• ITIL is a set of practices for IT service management

• It provides guidelines for aligning IT services with business needs

• ITIL covers various aspects of IT service management such as service design, service transition, service operation, and continual service improvement

• ITIL is widely used in organizations across the world

• ITIL certification is available for ind...read more

Accounts payable refers to the amount of money a company owes to its suppliers or vendors for goods or services received but not yet paid for.

• Accounts payable is a liability account that shows the amount a company owes to its suppliers or vendors.

• It is recorded in the balance sheet under current liabilities.

• Accounts payable can include invoices for raw materials, utilities, rent, and other expenses.

• The payment terms for accounts payable are usually specified in the purchase a...read more

Probability of default and loss given default are important metrics used in credit risk analysis.

• Probability of default (PD) is the likelihood of a borrower defaulting on their loan or credit obligation.

• Loss given default (LGD) is the amount of money lost by the lender in the event of a borrower default.

• PD and LGD are used to calculate expected credit losses (ECL) for financial reporting purposes.

• ECL is an estimate of the amount of money a lender expects to lose due to credit...read more

A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

• Balance sheet is a snapshot of a company's financial position at a specific date.

• It shows the company's assets, liabilities, and equity.

• Assets are what the company owns, liabilities are what the company owes, and equity is the difference between the two.

• The balance sheet follows the accounting equation: Assets = Liabilities + Equity.

• Examples of assets include cash, invento...read more

To validate an invoice, one should check for accuracy, completeness, and authenticity of the information provided.

• Verify the invoice number, date, and amount

• Check if the invoice matches the purchase order and delivery receipt

• Ensure that the vendor's name and address are correct

• Confirm that the goods or services were received and are of satisfactory quality

• Check for any discrepancies or errors in the invoice

• Authenticate the invoice by verifying the vendor's tax identification ...read more

Consignment stock refers to goods that are sent by a supplier to a retailer, but the supplier retains ownership until the goods are sold to the end customer.

• The supplier retains ownership of the goods until they are sold to the end customer

• The retailer does not pay for the goods until they are sold

• The supplier may take back any unsold goods

• Consignment stock can help retailers manage inventory and reduce risk

• Examples include art galleries selling artwork on consignment and car...read more

Sales cycle refers to the process of selling a product or service from start to finish.

• It includes prospecting, lead generation, qualification, presentation, objection handling, closing, and follow-up.

• The length of the sales cycle can vary depending on the complexity of the product or service being sold.

• Understanding the sales cycle is important for businesses to optimize their sales process and improve their bottom line.

• For example, a sales cycle for a software product may i...read more

GST report is a detailed document that provides information on the taxes paid and collected under the Goods and Services Tax system.

• GST report includes details of input tax credit, output tax liability, tax paid, and tax collected.

• It helps in reconciling the taxes paid and collected during a specific period.

• The report is submitted to the tax authorities to ensure compliance with GST regulations.

• It is important for businesses to maintain accurate GST reports to avoid penalties...read more