Junior Finance Executive Interview Questions and Answers

Prepaid rent is recorded as an asset in the balance sheet.

• The journal entry for prepaid rent involves debiting the prepaid rent account and crediting the cash account.

• Prepaid rent is classified as a current asset in the balance sheet.

• It represents the rent paid in advance for a future period of time.

• As the time period covered by the prepaid rent elapses, it is recognized as an expense in the income statement.

• Examples of prepaid rent include paying rent for a commercial space ...read more

GST, or Goods and Services Tax, is a comprehensive indirect tax on the supply of goods and services.

• GST is a single tax that replaces multiple indirect taxes like VAT, service tax, and excise duty.

• It is levied at each stage of the supply chain, ensuring tax is paid on value added at each step.

• There are different GST rates depending on the type of goods or services, e.g., 5%, 12%, 18%, and 28%.

• Input tax credit allows businesses to claim back the tax paid on purchases, reducing...read more

Financial analysis involves evaluating financial data to inform decision-making and assess performance.

• Understanding financial statements: Analyzing balance sheets, income statements, and cash flow statements to assess a company's financial health.

• Ratio analysis: Using ratios like current ratio and debt-to-equity ratio to evaluate liquidity and leverage.

• Trend analysis: Examining historical data to identify patterns and forecast future performance, such as revenue growth trend...read more