Revenue Associate Interview Questions and Answers

GAAP & SOX Audit are accounting standards that ensure financial reporting accuracy and prevent fraud.

• GAAP (Generally Accepted Accounting Principles) is a set of accounting standards that companies must follow when preparing financial statements.

• SOX (Sarbanes-Oxley Act) is a law that requires companies to establish internal controls and procedures to prevent financial fraud.

• SOX also requires companies to have an external audit of their financial statements to ensure compliance...read more

Revenue Accruals are the recognition of revenue earned but not yet received or invoiced.

• Revenue that has been earned but not yet invoiced is recorded as a revenue accrual.

• Revenue accruals are used to match revenue with the period in which it was earned.

• Revenue accruals are adjusted at the end of each accounting period to reflect the actual revenue earned.

• Examples of revenue accruals include unbilled services, goods shipped but not yet invoiced, and revenue from long-term cont...read more

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

• Revenue is recognized when it is earned and realizable

• Revenue is earned when goods or services are delivered

• Revenue is realizable when payment is expected

• Revenue is recognized at the fair value of the consideration received or receivable

• Revenue recognition principles vary by industry and accounting standards