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Define FIFO.
Answer/Explaination: FIFO (first-in, first-out) is an inventory cost flow whereby the first goods
purchased are assumed to be the first goods sold so that the ending inventory consists of the
most recently purchased goods.
What is
EBITDA?
Answer/Explaination: EBITDA means Earnings Before Interest, Taxes,
Depreciation and Amortization, but after all product / service, sales and overhead
(SG&A) costs are accounted for. Sometimes referred to as Operational Cash
Flow.
.
What is a Ledger?
Answer/Explaination: The record used to keep track of the increases and
decreases in a financial statement items is termed as a ledger account. The
entire group of accounts is kept together in an accounting record called ledger.
The relationship between the two is that the P&L is a representation on the
balance sheet.
Define Assets.
Answer/Explaination: Assets are economic resources that are owned by a
business.
. What are the Debt-Credit rules that affect the Owner’s Equity?
Answer/Explaination: Expenses decrease OE.
Drawings decrease OE.
Revenue increase OE.
. Define Liabilities.
Answer/Explaination: Liabilities are debts. They represent negative future cash
flows for the enterprise.
What is
Absorption
Costing?
Answer/Explaination: It is the method under which all manufacturing costs, both
variable and fixed, are treated as product costs with non-manufacturing costs,
e.g. selling and administrative expenses, being treated as period costs.
5. What is Depreciation?
Answer/Explaination: It means the systematic allocation of the cost of
depreciable asset to expense over the asset’s useful life.
Can you give an example of work that you have carried out away from the
8.
audit side, in which you've had to liaise with senior managers?
Answer/Explaination: I worked to design a new company structure for a fast-
growing telecommunications company. The process included meetings with
client employees and workshops with senior management.
Financial accounting concerns tax, statutory reports and day-to-day areas such
as payroll.