Banking Operations Analyst Interview Questions and Answers

Trail balance is a bookkeeping worksheet that lists the balances of all ledger accounts in debit and credit columns to ensure they are equal.

• Trail balance is used to ensure the accuracy of the recorded transactions in the general ledger.

• It lists all the ledger accounts with their respective debit or credit balances.

• The total of the debit column should equal the total of the credit column.

• If there are discrepancies in the trail balance, it indicates errors in the accounting re...read more

A profit/loss a/c statement summarizes revenues, costs, and expenses incurred during a specified period.

• It shows the financial performance of a company over a specific period of time.

• Revenues and gains are listed on the credit side, while expenses and losses are listed on the debit side.

• The difference between the two sides represents the net profit or loss for the period.

• It helps stakeholders assess the profitability and financial health of the company.

• Example: A company's pr...read more

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

• Lists assets, liabilities, and owners' equity

• Provides a snapshot of the company's financial position

• Helps in assessing the company's financial health and performance

• Follows the formula: Assets = Liabilities + Equity

• Example: If a company has $100,000 in assets, $60,000 in liabilities, and $40,000 in equity, the balance sheet would show these figures

Contingent refers to something that is dependent on certain conditions or events.

• Contingent refers to something that may or may not happen depending on certain circumstances.

• It is often used in contracts to describe obligations that are only triggered under specific conditions.

• Contingent liabilities are potential liabilities that may arise in the future, such as warranties or pending lawsuits.