CohnReznick Interview Questions and Answers

P/L stands for profit and loss, which shows the financial performance of a company over a specific period. B/S stands for balance sheet, which provides a snapshot of a company's financial position at a specific point in time.

• P/L (Profit and Loss) shows the revenue, expenses, and profits or losses of a company over a specific period.

• B/S (Balance Sheet) shows the assets, liabilities, and equity of a company at a specific...read more

Accrual process is a method of recognizing revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual process involves recording revenues and expenses in the period they are earned or incurred, regardless of when cash is received or paid.

• This method provides a more accurate representation of a company's financial position and performance.

• For example, if a company provides services in Dec...read more

Prepaid process involves receiving payment for goods or services before they are delivered, impacting profit and loss statement by deferring revenue recognition.

• Prepaid process involves receiving payment in advance for goods or services.

• Revenue from prepaid items is recognized gradually over time as the goods or services are delivered.

• Prepaid expenses are recorded as assets on the balance sheet until they are used or e...read more

The five step revenue model involves identifying the target market, attracting leads, converting leads to sales, delivering the product or service, and retaining customers for repeat business.

• Identify target market: Determine the specific demographic or market segment that is most likely to purchase your product or service.

• Attract leads: Use marketing strategies such as advertising, social media, and content marketing ...read more

The latest revision in GAAP is the new revenue recognition standard, ASC 606.

• ASC 606, Revenue from Contracts with Customers, is the latest revision in GAAP

• It provides a comprehensive framework for recognizing revenue from customer contracts

• ASC 606 impacts various industries such as software, telecommunications, and construction

• The standard aims to improve comparability and consistency in financial reporting

Test of control is a procedure used to evaluate the effectiveness of internal controls in place to prevent or detect errors or fraud.

• Test of control involves assessing the design and implementation of internal controls.

• Examples of test of control procedures include reviewing documentation, observing processes, and conducting interviews with employees.

• The results of test of control help auditors determine the reliabilit...read more

Golden rules of accounting are basic principles that guide the process of recording financial transactions.

• The three golden rules of accounting are: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified in the accounting system.

• For example, when a compa...read more

A journal entry is a record of a financial transaction in a company's accounting system.

• Journal entries consist of a debit and credit entry to different accounts

• Debits are recorded on the left side and credits on the right side

• The total debits must equal the total credits in a journal entry