Tax Associate 2 Interview Questions and Answers

Depreciation adjustments case study

• Calculate depreciation expense using straight-line method

• Adjust accumulated depreciation for prior years

• Record any disposals or impairments of assets

• Review useful life and salvage value assumptions

• Ensure compliance with accounting standards and tax regulations

Favorable adjustments refer to changes made to financial statements that improve the overall financial position of a company.

• Favorable adjustments can include corrections to errors, revaluations of assets, or changes in accounting estimates.

• These adjustments can result in higher revenues, lower expenses, or increased assets on the balance sheet.

• For example, a company may discover an error in its inventory valuation, leading to a favorable adjustment that increases its reporte...read more

Forming net income line items involves categorizing revenues and expenses to calculate the overall profit or loss.

• Identify all sources of revenue, such as sales, services, interest income, etc.

• List all expenses incurred, including salaries, rent, utilities, supplies, etc.

• Subtract total expenses from total revenue to calculate net income.

• Include any adjustments or extraordinary items that affect the final net income figure.

Unfavourable adjustments refer to changes made to financial statements that negatively impact the company's performance.

• Unfavourable adjustments can include write-downs of assets, increased liabilities, or lower revenue recognition.

• These adjustments are typically made to reflect a more accurate representation of the company's financial position.

• Examples of unfavourable adjustments include recognizing a loss on an investment, increasing the allowance for doubtful accounts, or ...read more

The process for filing tax return involves gathering necessary documents, filling out forms accurately, and submitting them to the appropriate agency.

• Gather all necessary documents such as W-2s, 1099s, and receipts

• Fill out tax forms accurately, including any deductions or credits

• Submit tax forms to the appropriate agency, either electronically or by mail

• Pay any taxes owed or receive a refund if applicable