Lead Financial Analyst Interview Questions and Answers

Accrued expenses are costs that have been incurred but not yet paid.

• Accrued expenses are recorded as liabilities on the balance sheet

• Examples include salaries payable, interest payable, and taxes payable

• Accrued expenses are typically recognized through adjusting journal entries at the end of an accounting period

Accrual expense is an accounting method that recognizes expenses when they are incurred, regardless of when payment is made.

• Accrual expense is recorded when a company receives goods or services, even if payment has not been made yet.

• It helps in matching expenses with revenues in the same accounting period.

• Accrual expense is important for accurate financial reporting and analysis.

• Examples include salaries owed to employees for work done in a particular month, but paid in the f...read more

A zero coupon bond is a debt security that does not pay interest but is sold at a discount to its face value.

• Zero coupon bonds are issued at a discount to their face value and do not make periodic interest payments.

• Investors earn a return by purchasing the bond at a discount and receiving the full face value at maturity.

• The difference between the purchase price and the face value represents the investor's return on investment.

• Zero coupon bonds are often used for long-term fin...read more