QX Global Group Interview Questions and Answers

AP payments involve recording liabilities and cash disbursements in accounting.

• Record the invoice in accounts payable: Debit 'Expenses' and Credit 'Accounts Payable'. Example: $1,000 for office supplies.

• When making a payment, debit 'Accounts Payable' and credit 'Cash/Bank'. Example: Paying the $1,000 invoice reduces cash.

• Ensure to track payment dates and terms for accurate cash flow management.

• Reconcile accounts p...read more

To check trade debtors, I will perform reconciliations, review aging reports, and assess credit risk and collection processes.

• Review the accounts receivable aging report to identify overdue accounts.

• Perform reconciliations between the general ledger and subsidiary ledgers.

• Analyze payment patterns to assess the likelihood of collection.

• Conduct credit risk assessments for high-value debtors.

• Verify the existence of d...read more

To check inventory, I will conduct physical counts, reconcile records, and analyze discrepancies to ensure accuracy and compliance.

• Conduct regular physical inventory counts to verify stock levels.

• Use inventory management software to track and manage stock.

• Reconcile discrepancies between physical counts and recorded inventory.

• Implement a cycle counting system for ongoing accuracy checks.

• Review inventory turnover ra...read more

Bank reconciliation is the process of comparing a company's financial records with bank statements to ensure accuracy.

• Identifies discrepancies between bank statements and company records.

• Ensures all transactions are accounted for, such as deposits and withdrawals.

• Helps detect errors or fraudulent activities in financial records.

• Example: A company finds a bank fee not recorded in its books.

• Typically performed month...read more

The accrual system of accounting recognizes revenues and expenses when they occur, regardless of cash flow.

• Revenues are recorded when earned, not when cash is received. Example: A company delivers a service in December but receives payment in January.

• Expenses are recorded when incurred, not when paid. Example: A business receives a utility bill in January for December's usage.

• This method provides a more accurate f...read more

Analyzing balance sheets and income statements involves assessing financial health, performance, and trends over time.

• Review key ratios: liquidity ratios (e.g., current ratio) indicate short-term financial health.

• Examine profitability: net profit margin shows how much profit is generated from revenue.

• Analyze trends: compare current statements with previous periods to identify growth or decline.

• Assess asset managem...read more

A prepaid expense is a payment made in advance for goods or services to be received in the future, recorded as an asset.

• Prepaid expenses are recorded as current assets on the balance sheet.

• Common examples include prepaid insurance, rent, and subscriptions.

• They are gradually expensed over time as the benefits are realized.

• For instance, if you pay a year's insurance premium upfront, it is a prepaid expense.

• As each m...read more

Middleware is software that connects different applications or services, enabling them to communicate and manage data exchange.

• Acts as a bridge between different software applications.

• Facilitates communication and data management in distributed systems.

• Examples include message brokers like RabbitMQ and API gateways.

• Can provide services like authentication, logging, and transaction management.

• Used in microservices ...read more