10+ Client Financial Management Analyst Interview Questions and Answers

JE for services provided but payment not received

• Debit Accounts Receivable (Asset) for the amount owed

• Credit Service Revenue (Income) for the amount of services provided

Revenue recognition is the process of identifying and recording revenue earned in a specific period.

• Identify the contract with the customer

• Identify the performance obligations in the contract

• Determine the transaction price

• Allocate the transaction price to the performance obligations

• Recognize revenue when (or as) the entity satisfies a performance obligation

Cash flow statement shows the movement of cash in and out of a business, while operating cash flows represent the cash generated from core business activities.

• Cash flow statement is a financial statement that shows the inflows and outflows of cash in a business over a specific period of time.

• Operating cash flows represent the cash generated from the core business activities of a company, such as sales of goods or services.

• Operating cash flows exclude cash flows from investing...read more

Golden rules of accounting and adjustment entries

• The golden rules of accounting are: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains

• Adjustment entries are made to ensure that the financial statements accurately reflect the financial position of the company at the end of the accounting period

• Examples of adjustment entries include recording outstanding expenses (accrued expenses), prepaid expens...read more

I am a Client Financial Management Analyst with expertise in budgeting, forecasting, and analyzing financial impacts.

• Budgeting is the process of creating a detailed plan for the financial activities of an organization, typically for a specific period of time.

• Forecasting involves predicting future financial outcomes based on historical data and trends.

• Difference: Budgeting sets a financial plan for the future, while forecasting predicts financial outcomes.

• High inventory can le...read more

Deferred tax asset and liability are balance sheet items that represent the future tax consequences of temporary differences between book and tax accounting.

• Deferred tax asset arises when a company has overpaid taxes or prepaid taxes, resulting in a future tax benefit.

• Deferred tax liability arises when a company has underpaid taxes or deferred taxes, resulting in a future tax obligation.

• These items are recorded on the balance sheet and reflect the expected tax impact of tempo...read more

Forecasting involves predicting future outcomes, budgeting is allocating resources based on financial goals, and planning is creating strategies to achieve those goals.

• Forecasting involves predicting future trends or outcomes based on historical data and analysis.

• Budgeting is the process of allocating resources (such as money, time, or manpower) based on financial goals and constraints.

• Planning involves creating strategies and action plans to achieve the financial goals set i...read more

Revenue recognition is the process of identifying and recording revenue earned by a company.

• Revenue is recognized when it is earned, not when payment is received.

• Revenue is recognized when the company has fulfilled its obligations to the customer.

• Revenue can be recognized at a point in time or over a period of time.

• Revenue recognition is governed by accounting standards such as ASC 606 and IFRS 15.

• Examples of revenue recognition methods include percentage of completion, compl...read more

Accrual is recognizing revenue and expenses when they are earned or incurred, regardless of when cash is exchanged. Deferral is postponing recognition of revenue or expenses until a later period.

• Accrual accounting matches revenue and expenses to the time period in which they are incurred, not when cash is exchanged.

• Deferral accounting delays recognizing revenue or expenses until a future period.

• Accruals and deferrals are used to ensure financial statements accurately reflect ...read more

Variance is the difference between planned or budgeted amounts and actual amounts.

• Variance is used to analyze deviations from expected outcomes.

• It can be calculated for various financial metrics such as revenue, expenses, and profits.

• Positive variance indicates better performance than expected, while negative variance indicates underperformance.

• For example, if a company budgeted $100,000 for expenses but actually spent $90,000, the variance would be $10,000 favorable.