Genpact Financial Accountant Interview Questions and Answers

Accounts payable is money owed by a company to its suppliers, while accounts receivable is money owed to a company by its customers.

• Accounts payable represents the company's short-term liabilities, while accounts receivable represents its short-term assets.

• Accounts payable is recorded as a liability on the balance sheet, while accounts receivable is recorded as an asset.

• Accounts payable is typically paid by the company...read more

Nominal accounts are used to record revenue, expenses, and gains or losses.

• Nominal accounts are temporary accounts that are closed at the end of an accounting period.

• Examples of nominal accounts include sales revenue, salaries expense, rent expense, interest income, and advertising expense.

• These accounts are used to track the flow of money in and out of a business and determine its profitability.

• Nominal accounts are al...read more

Types of accounts include assets, liabilities, equity, revenue, and expenses.

• Assets: resources owned by the company (e.g. cash, inventory)

• Liabilities: debts owed by the company (e.g. loans, accounts payable)

• Equity: the residual interest in the assets of the company after liabilities are deducted (e.g. common stock, retained earnings)

• Revenue: income earned by the company (e.g. sales revenue, service revenue)

• Expenses: co...read more

Assets are resources owned by a company that have monetary value and can be used to generate revenue.

• Assets can include cash, investments, property, equipment, and inventory.

• They are recorded on a company's balance sheet and can be classified as current or non-current.

• Current assets are those that can be converted to cash within a year, while non-current assets are those that have a longer lifespan.

• Examples of assets i...read more

Accounts refer to the records of financial transactions, while accounting is the process of recording, summarizing, and analyzing those transactions.

• Accounts are the individual records of financial transactions, such as sales, purchases, and expenses.

• Accounting involves the systematic recording, summarizing, and analyzing of these transactions to provide financial information.

• Accounts are used to track the financial ac...read more

There are three types of financial statements: income statement, balance sheet, and cash flow statement.

• Income statement shows a company's revenues and expenses over a period of time.

• Balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

• Cash flow statement shows a company's inflows and outflows of cash over a period of time.

• Other types of statements include statement of changes in ...read more

A nominal account is a general ledger account that is used to record expenses, revenues, gains, and losses.

• Nominal accounts are temporary accounts that are closed at the end of an accounting period.

• Examples of nominal accounts include sales revenue, rent expense, interest income, and advertising expense.

• These accounts are used to track the financial performance of a business over a specific period of time.

• Nominal accou...read more

Cash refers to physical currency or coins that can be used to make purchases or pay debts.

• Cash is a tangible asset that can be easily exchanged for goods or services.

• It is commonly used for small transactions or in situations where electronic payment methods are not available.

• Cash can be stored in a wallet, cash register, or bank vault.

• Examples of cash include coins, banknotes, and checks that can be immediately cashed...read more

Assets are resources owned by a company or individual that have monetary value and can be used to generate income.

• Types of assets include tangible assets such as property, plant, and equipment, and intangible assets such as patents, trademarks, and goodwill.

• Financial assets such as stocks, bonds, and cash equivalents are also considered assets.

• Current assets are those that can be easily converted to cash within a year,...read more

Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

• Depreciation is a method used in accounting to allocate the cost of an asset over its useful life.

• It is recorded as an expense on the income statement and reduces the asset's value on the balance sheet.

• Depreciation can be calculated using various methods such as straight-line, declining balance, or units of ...read more

Capital refers to financial assets or resources used for investment and growth in a business or economy.

• Capital can be classified into different types: equity capital (e.g., stocks) and debt capital (e.g., loans).

• Working capital is essential for day-to-day operations, calculated as current assets minus current liabilities.

• Investment in capital assets, like machinery or real estate, can enhance production capacity and e...read more

Difference between what?

• Please specify what you are comparing

• Provide context for the comparison

• Identify key similarities and differences

• Use examples to illustrate the comparison