Fund Accounting Supervisor Interview Questions and Answers

Journal entries for contribution are used to record donations or investments made to a company or organization.

• Debit the cash or investment account for the amount of the contribution

• Credit the contribution revenue account for the same amount

• If the contribution is restricted, credit the corresponding liability account instead of the revenue account

• Example: Debit Cash $10,000, Credit Contribution Revenue $10,000

Risk level notes to account refers to the level of risk associated with a particular account as mentioned in the notes section.

• It is a description of the level of risk associated with an account

• It is mentioned in the notes section of the account

• It helps in assessing the overall risk of the portfolio

• Examples include credit risk, market risk, operational risk, etc.

NAV calculation involves determining the net asset value of a fund.

• Calculate the total value of assets in the fund

• Subtract the total liabilities from the total assets

• Divide the result by the total number of outstanding shares

• This gives the NAV per share

• NAV calculation is done daily for mutual funds and ETFs

IFRS on investment refers to the International Financial Reporting Standards that govern the accounting treatment of investments.

• IFRS provides guidelines on how to recognize, measure, and disclose investments in financial statements

• Investments can include equity securities, debt securities, and other financial instruments

• IFRS requires investments to be classified as either fair value through profit or loss, available for sale, or held to maturity

• The accounting treatment of in...read more