Finance Accounts Process Associate Interview Questions and Answers

COGS stands for Cost of Goods Sold, which is the direct cost of producing goods or services sold by a company.

• COGS includes the cost of materials, labor, and overhead expenses directly related to the production of goods or services.

• It is subtracted from the revenue generated by the sale of goods or services to determine the gross profit.

• COGS is an important metric for businesses to track as it directly impacts their profitability.

• Examples of COGS include the cost of raw mater...read more

Bank reconciliation statement is a document that compares the bank statement with the company's accounting records.

• It helps identify any discrepancies between the two records.

• It ensures that all transactions are recorded accurately.

• It includes items such as deposits in transit, outstanding checks, and bank errors.

• It is usually prepared on a monthly basis.

• Example: If a company records a check as $500 but the bank statement shows it as $550, the bank reconciliation statement wi...read more

Bank reconciliation statements are important for several reasons.

• Identifying errors or discrepancies in bank transactions

• Ensuring accuracy of accounting records

• Preventing fraud or embezzlement

• Tracking outstanding checks or deposits

• Identifying bank fees or charges

• Reconciling differences between bank and book balances

• Providing evidence for audits or financial statements