Clifford Chance Interview Questions and Answers

Bad debt refers to amounts owed that are unlikely to be collected, often due to customer insolvency or bankruptcy.

• Bad debt occurs when a customer fails to pay their outstanding invoices.

• For example, if a company sells products on credit and the customer goes bankrupt, that debt becomes bad debt.

• Businesses often write off bad debt as an expense to reflect the loss in their financial statements.

• Bad debt can negative...read more

Important things to check while processing invoices include accuracy, proper documentation, approval, and matching with purchase orders.

• Verify accuracy of invoice details such as amounts, dates, and vendor information

• Ensure proper documentation is attached, such as receipts or purchase orders

• Confirm approval from authorized personnel before processing payment

• Match the invoice with corresponding purchase orders to ...read more

Managing challenges in O2C is crucial for success in the role of Associate Vice President.

• One challenge in O2C is ensuring accurate and timely order processing. This can be managed by implementing efficient order management systems and regularly monitoring order fulfillment.

• Another challenge is managing customer disputes and resolving them effectively. This can be done by establishing clear communication channels,...read more

The 3 golden rules of accounting are: 1. Debit the receiver, credit the giver. 2. Debit what comes in, credit what goes out. 3. Debit expenses and losses, credit income and gains.

• Debit the receiver, credit the giver - when a business receives something, it debits the account and when it gives something, it credits the account.

• Debit what comes in, credit what goes out - when money comes into the business, it debits...read more

Budget is a financial plan for a specific period, while forecast is an estimate of future financial outcomes.

• Budget is a detailed plan of income and expenses for a specific period, usually a year.

• Forecast is an estimate of future financial outcomes based on past performance and current trends.

• Budget is more rigid and inflexible, while forecast is more flexible and adaptable.

• Budget is used for planning and controll...read more