About Consero Global

Consero was founded in early 2006 with the goal of providing small and mid-market companies with
a superior alternative to building and maintaining an in-house finance function.

Since then, we have expanded our solution offering strategy and funding services, operational
financial services, financial controller services, bookkeeping and administration services and
debuting our proprietary cloud-based software platform, SIMPL

Consero financial services: Outsourced book keeping, Financial Planning, Controller services,
Strategic CFO support.

Q1. What are Month End Closing Procedures ?

Ans.

Month end closing procedures are the steps taken to finalize financial statements at the end of each
month.

 Reconciling accounts

 Posting adjusting entries

 Reviewing financial statements

 Preparing reports for management

 Closing temporary accounts

 Ensuring compliance with accounting standards

 Archiving financial records

 Preparing for the next month's accounting cycle

Q2. What do you know about Accumulated Depreciation?

Ans.

Accumulated Depreciation is the total depreciation expense recognized for an asset over its useful
life.

 Accumulated Depreciation is a contra-asset account that is subtracted from the asset's cost
to determine its net book value.

 It represents the cumulative amount of depreciation expense recorded for an asset since its
acquisition.

 Accumulated Depreciation increases over time as depreciation expense is recognized.

 It is shown on the balance sheet as a negative value.

 For example, if a company purchased a vehicle for $20,000 and has recorded $5,000 in
depreciation expense, the Accumulated Depreciation would be $5,000.
  The net book value of the vehicle would then be $15,000 ($20,000 - $5,000).

Q3. What do you know about Unbilled Revenue?

Ans.

Unbilled revenue refers to revenue that has been earned but not yet invoiced to the customer.

 Unbilled Revenue should be treated as an asset until the customer can be billed. It should be
moved to accounts receivable when the customer is billed.

 It represents the amount of revenue that the company has recognized but has not yet
received payment for.

 Unbilled revenue can occur in industries where services are provided over a period of time,
such as consulting or software development.

 For example, if a consulting firm completes a project but has not yet sent an invoice to the
client, the revenue from that project would be considered unbilled revenue.

 Unbilled revenue should be closely monitored and regularly reviewed to ensure timely
invoicing and collection.

 The journal entry for unbilled revenue involves debiting unbilled receivables and crediting
revenue.

 Once the invoice is generated, the unbilled revenue account is credited and accounts
receivable is debited.

 Unbilled revenue is common in service-based industries where work is completed before

 Unbilled revenue can also be referred to as accrued revenue or deferred revenue.

Q4. Deferred Revenue concept and its entries

Ans.

Deferred revenue is a concept where revenue is received in advance but recognized as income over
time as the goods or services are delivered.

 Deferred revenue is a liability on the balance sheet until it is earned.

 When revenue is received in advance, it is recorded as a debit to cash and a credit to

 As the goods or services are delivered, the deferred revenue is recognized as income by
debiting deferred revenue and crediting revenue.

 Examples of deferred revenue include prepaid subscriptions, advance payments for services,
and gift cards.

 Deferred revenue is important for accurate financial reporting and matching revenue with
expenses.
what is accrual, what is provision for depreciation, what is Bad debts, Journal entries,

Ans.

Accrual is recognizing revenue and expenses when they are incurred, provision for depreciation is
setting aside funds for asset depreciation, bad debts are uncollectible debts, journal entries record
financial transactions.

 Accrual is the accounting method of recognizing revenue and expenses when they are
incurred, regardless of when cash is exchanged.

 Accrual accounting matches revenue and expenses to the time period they are incurred, not
when cash is exchanged

 Accrual accounting provides a more accurate representation of a company's financial

 Provision for depreciation is the allocation of funds to account for the decrease in value of
assets over time.

 Bad debts are debts that are unlikely to be collected from customers and are written off as a
loss.

 Journal entries are the recording of financial transactions in the accounting system, following
the double-entry accounting method.

Q6. How to find cogs, what is unbilled revenue

Ans.

COGS can be found by subtracting ending inventory from beginning inventory and adding purchases.
Unbilled revenue is revenue that has been earned but not yet billed to the customer.

 COGS = Beginning Inventory + Purchases - Ending Inventory

Outstanding exp Vs Accrued Expenses

Ans.

Outstanding expenses are unpaid bills while accrued expenses are expenses incurred but not yet
paid.

 Outstanding expenses are recorded as accounts payable on the balance sheet.

 Accrued expenses are recorded as liabilities on the balance sheet.

 Examples of outstanding expenses include unpaid rent, utilities, and vendor invoices.

 Examples of accrued expenses include salaries, interest, and taxes.

 Both outstanding and accrued expenses are recognized in the income statement as
expenses.
  Outstanding expenses are usually short-term while accrued expenses can be short or long-
term.

Unbilled revenue when to account with example

Ans.

Unbilled revenue should be accounted for when it is earned but not yet invoiced to the customer.

 Recognize unbilled revenue when the performance obligation is satisfied and revenue is
earned.

 Record unbilled revenue as an asset on the balance sheet.

 Adjust unbilled revenue periodically to reflect the actual amount that should be billed to the
customer.

 Example: A construction company completes a project in December but does not bill the
customer until January. The revenue earned in December should be recognized as unbilled
revenue.

 Example: A software company provides a subscription service for a year but bills the
customer quarterly. The revenue for the remaining quarters should be recognized as unbilled
revenue.

Provision for Bad debts entry

Ans.

Provision for bad debts is an accounting entry made to account for potential losses due to non-
payment of debts.

 Provision for bad debts is a contra asset account that reduces accounts receivable on the
balance sheet.

 It is based on an estimate of the percentage of accounts receivable that will not be collected.

 The entry is made by debiting the provision for bad debts account and crediting the accounts
receivable account.

 The provision for bad debts account is adjusted periodically based on actual bad debt write-
offs.

 Example: If a company has $100,000 in accounts receivable and estimates that 5% will not be
collected, it would make a provision for bad debts entry of $5,000.

Difference between realised and unrealised forex gain/ loss

Ans.

Realised forex gain/loss is when the exchange rate changes and the transaction is completed, while
unrealised forex gain/loss is when the exchange rate changes but the transaction is not completed.
  Realised forex gain/loss is recorded when an actual transaction occurs and the exchange rate
has changed since the initial transaction.

 Unrealised forex gain/loss is recorded when the exchange rate changes but the transaction
has not been completed yet.

 Realised gain/loss affects the income statement, while unrealised gain/loss affects the
balance sheet.

 Example: If a company buys inventory in a foreign currency and the exchange rate changes
before payment is made, it will result in unrealised forex gain/loss.

 Example: If a company sells goods in a foreign currency and the exchange rate changes
before receiving payment, it will result in realised forex gain/loss.

Journal entry for deferred revenue and for unbilled revenue

Ans.

Journal entries for deferred revenue and unbilled revenue

 Deferred revenue journal entry: Debit Cash/Accounts Receivable, Credit Deferred Revenue

 Unbilled revenue journal entry: Debit Unbilled Revenue, Credit Revenue

 Example: Deferred revenue journal entry - Debit Accounts Receivable $1,000, Credit
Deferred Revenue $1,000

 Example: Unbilled revenue journal entry - Debit Unbilled Revenue $500, Credit Revenue
$500

Diff between forecasting and budgeting, sale of assets and their effects in fs, provision for doubtful
debt entry, unrealised/ realised gain and loss meaning, what are we check if there is any diff
between budgeted and actuals like in 'ee cost, electricity cost, salaries, etc

Ans.

Answering questions related to financial analysis including forecasting, budgeting, sale of assets,
provision for doubtful debt, and budget vs actuals.

 Forecasting involves predicting future financial performance while budgeting involves setting
financial goals and targets.

 Sale of assets can impact financial statements through gains or losses.

 Provision for doubtful debt is an estimate of potential bad debts and is recorded as an
expense.

 Realized gains and losses are from completed transactions while unrealized gains and losses
are from assets that have not been sold.

 Checking for differences between budgeted and actuals involves analyzing variances and
identifying potential areas for improvement.
  Examples of areas to check for variances include employee costs, electricity costs, and
salaries.

What adjustments we do in consolidation

Ans.

Adjustments in consolidation involve eliminating intercompany transactions, adjusting for differences

 Eliminating intercompany transactions to avoid double counting

 Adjusting for differences in accounting policies to ensure consistency

 Recognizing goodwill to account for the premium paid in acquisitions

Accrual of any expense with example

Ans.

Accrual of expenses refers to recognizing expenses in the period they are incurred, regardless of
when they are paid.

 Accrual of expenses helps in matching expenses with revenues in the same accounting
period.

 Examples include recognizing salaries expense for work done by employees even if the
payment is made in the next month.

 Another example is recognizing interest expense on a loan even if the payment is due in the
next quarter.

What is un earned revenue

Ans.

Unearned revenue is money received by a company for goods or services that have not yet been
provided.

 Unearned revenue is a liability on the company's balance sheet until the goods or services
are delivered.

 It represents an obligation to provide goods or services in the future.

 Common examples include prepaid rent, magazine subscriptions, and advance payments for
services.

 As the goods or services are provided, the unearned revenue is recognized as revenue on the
income statement.
Deferred revenue and entries to be posted in books

Ans.

Deferred revenue is revenue received in advance but not yet earned. Entries include debit to cash or
accounts receivable and credit to deferred revenue.

 Deferred revenue represents money received for goods or services that have not yet been
provided.

 Entries for deferred revenue typically involve debiting cash or accounts receivable and
crediting deferred revenue.

 As the revenue is earned, the deferred revenue is reduced and recognized as revenue on the
income statement.

 Example: A company receives $1,200 in advance for a year-long subscription service. The
entry would be to debit cash or accounts receivable by $1,200 and credit deferred revenue
by $1,200.

Journal entry of sale of fixed assets in case of profit on sale

Ans.

Journal entry for sale of fixed assets with profit involves debiting cash and accumulated depreciation,
crediting fixed asset and gain on sale of asset accounts.

 Debit cash account for the amount received from the sale

 Debit accumulated depreciation account to remove the accumulated depreciation on the

 Credit fixed asset account to remove the cost of the asset from the books

 Credit gain on sale of asset account for the profit made on the sale

Explain the process of P2P cycle

Ans.

P2P cycle refers to the procure-to-pay cycle, which is the process of purchasing goods or services and
making payments for them.

 The cycle starts with the identification of a need for goods or services.

 A purchase requisition is created and approved by the appropriate authority.

 A purchase order is generated and sent to the supplier.

 The supplier delivers the goods or services.

 The goods or services received are matched with the purchase order and invoice.

 An invoice is generated by the supplier and sent to the buyer.

 Payment is made to the supplier.

 The transaction is recorded in the accounting system.

1. what is deferred revenue? 2. What is accrued income? 3. Month end closing activities from
accounting perspective 4. What is accumulated Depreciation? 5. Depreciation entry 6. Entry for
payroll expenses with TDS deduction 7. Things to check during balance sheet reconciliation 8.
Revenue recognition

Ans.

Interview questions for Assistant Controller covering topics such as deferred revenue, accrued
income, month-end closing activities, accumulated depreciation, payroll expenses, balance sheet
reconciliation, and revenue recognition.

 Deferred revenue is revenue received in advance for goods or services that have not yet
been delivered or performed.

 Accrued income is income earned but not yet received or recorded.

 Month-end closing activities include reconciling accounts, preparing financial statements,

 Accumulated depreciation is the total amount of depreciation expense recorded for an asset
over its useful life.

 Depreciation entry involves debiting the depreciation expense account and crediting the
accumulated depreciation account.

 Entry for payroll expenses with TDS deduction involves debiting the payroll expense account
and crediting the TDS payable account.

 Things to check during balance sheet reconciliation include ensuring all accounts are
properly classified, reconciling account balances to supporting documentation, and
identifying and resolving any discrepancies.

 Revenue recognition involves recognizing revenue when it is earned and realizable, and
when the risks and rewards of ownership have been transferred to the buyer.

Whether aging schedule is used in the vendor creation

Ans.

Yes, aging schedules are commonly used in vendor creation to track outstanding payments.

 Aging schedules help track how long invoices have been outstanding for each vendor

 They provide a snapshot of the current status of accounts payable

 They are useful for identifying overdue payments and managing cash flow effectively
Walk through all the financial statements Sale of FA with JE and its impact on 3 financial
statements Cash sales and credit sales How would you allocate rent for 3 different divisions Diff
between forecast and budget

Ans.

Answering questions related to financial statements and allocation of expenses

 The financial statements include the income statement, balance sheet, and cash flow
statement

 Sale of FA impacts the income statement, balance sheet, and cash flow statement through
depreciation and gain/loss on sale

 Cash sales and credit sales impact the income statement and cash flow statement differently

 Allocation of rent can be based on square footage, number of employees, or revenue

 Forecast is a prediction of future financial performance while budget is a plan for expected
financial performance

What is accrual and give exmaple

Ans.

Accrual is an accounting method that recognizes revenues and expenses when they are incurred,
regardless of when cash is exchanged.

 Accrual accounting matches revenues with expenses in the same accounting period

 It provides a more accurate picture of a company's financial position

 Example: A company records revenue when it earns it, even if the customer has not yet paid

What is prepaid expenses

Ans.

Prepaid expenses are expenses that have been paid in advance but have not yet been incurred.

 Prepaid expenses are considered assets on the balance sheet until they are used up or
expire.

 Common examples of prepaid expenses include prepaid rent, insurance premiums, and
subscriptions.

 Prepaid expenses are initially recorded as assets and then gradually expensed over time as
they are used or consumed.

What is accrued expenses

Accrued expenses are expenses that have been incurred but not yet paid for.

 Accrued expenses are recorded as liabilities on the balance sheet

 They represent expenses that have been recognized but not yet paid

 Examples include accrued salaries, interest, and taxes

What is prepaid income

Ans.

Prepaid income is income received in advance before it is earned.

 Prepaid income is recorded as a liability on the balance sheet until it is earned.

 Once the income is earned, it is recognized as revenue on the income statement.

 Common examples of prepaid income include rent payments, subscription fees, and
insurance premiums.

 Prepaid income is also known as unearned income or deferred income.

Golden rule of accounting

Ans.

The golden rule of accounting states that debit what comes in and credit what goes out.

 Debit what comes in and credit what goes out

 Assets = Liabilities + Equity

 Revenue = Expenses + Net Income

What is accruals

Ans.

Accruals are adjustments made to financial statements to ensure that revenues and expenses are
recognized in the period they occur, regardless of when cash is exchanged.

 Accruals help match revenues and expenses to the period in which they are incurred

 They are necessary for accurate financial reporting

 Examples include accrued interest, accrued wages, and accrued taxes

What do you mean by variance analysis?

Ans.
Variance analysis is the process of comparing actual financial results to planned or expected results
to identify and explain differences.

 Variance analysis helps in understanding the reasons for deviations from the budget or
forecast.

 It involves analysing the differences between actual and expected revenues, expenses, or
other financial metrics.

 Variance analysis can be used to identify areas of improvement, cost-saving opportunities, or

 For example, if a company's actual sales revenue is lower than the budgeted amount,
variance analysis can help determine the factors contributing to the shortfall, such as lower
sales volume or decreased pricing.

 Variance analysis is commonly used in budgeting, financial planning, and performance

Operating costs

Ans.

Operating costs are the expenses associated with running a business on a day-to-day basis.

 Operating costs include rent, utilities, salaries, and supplies.

 These costs are necessary for the business to function and generate revenue.

 Monitoring and controlling operating costs is important for profitability and sustainability.

 Examples of operating costs: employee wages, office rent, insurance premiums, marketing
expenses.

What does accrual mean?

Ans.

Accrual refers to the recognition of revenue or expenses that have been earned or incurred but not
yet received or paid.

 Accrual accounting recognizes revenue and expenses when they are earned or incurred,
regardless of when payment is received or made.

 This is in contrast to cash accounting, which only recognizes revenue and expenses when
payment is received or made.

 Accruals are typically recorded as adjusting entries at the end of an accounting period.

 Examples of accruals include accounts receivable, accounts payable, and accrued expenses.

 Accruals are important for providing a more accurate picture of a company's financial
performance and position.
Adjustment entries in accounting

Ans.

Adjustment entries are made to correct errors or omissions in accounting records.

 Adjustment entries are made at the end of an accounting period

 They are used to ensure that financial statements accurately reflect the company's financial
position

 Examples of adjustment entries include depreciation, accruals, and prepayments

 Adjustment entries can be made manually or through accounting software

Difference between Actual and estimated revenue and the actions taken

The main difference between actual and estimated revenue is that actual revenue is the actual
amount of money a company has earned, while estimated revenue is an estimate of what a company
expects to earn. Comparing actual and estimated revenue can help identify discrepancies and take
actions to improve performance

What is W9 form and limit to issue.

Ans.

W9 form is a tax form used by businesses to collect information from independent contractors or
freelancers. There is no limit to the number of W9 forms that can be issued.

 W9 form is used to collect information such as the contractor's name, address, and taxpayer
identification number (TIN).

 Businesses use W9 forms to report payments made to independent contractors to the IRS.

 There is no limit to the number of W9 forms that can be issued by a business.

 W9 forms are not submitted to the IRS but are kept for record-keeping purposes

Due vs accrual with example

Ans.

Due accounting records transactions when payment is received, while accrual accounting records
transactions when they occur.

 Due accounting is cash-based and records transactions when payment is received.

 Accrual accounting is based on when transactions occur, regardless of payment.

 Example: Due accounting records revenue when a customer pays for a product, while accrual
accounting records revenue when the product is sold.

 Example: Due accounting records expenses when they are paid, while accrual accounting
records expenses when they are incurred.
Accounting entries of AP and AR process

Ans.

Accounting entries for AP and AR process involve recording expenses and revenues, tracking
payments and receipts, and reconciling accounts.

 AP entries involve recording expenses and liabilities, such as invoices from vendors

 AR entries involve recording revenues and assets, such as sales invoices to customers

 Payments made to vendors are recorded as credits to AP and debits to cash/bank account

 Receipts from customers are recorded as credits to AR and debits to cash/bank account

 Reconciling accounts involves matching transactions in AP and AR with corresponding entries

Accounting concepts and convention

What is prepaid and prepaid JE

Ans.

Prepaid refers to expenses paid in advance, while prepaid JE stands for prepaid journal entry which
records the prepayment in accounting books.

 Prepaid expenses are costs that have been paid for in advance but have not yet been
incurred.

 Prepaid JE is a journal entry that records the prepayment as an asset on the balance sheet.

 Example: Prepaid rent is a common prepaid expense where rent is paid in advance for future
months.

 Example: Prepaid insurance is another example where insurance premiums are paid in
advance.

Current liability meaning

Ans.

Current liabilities are debts or obligations that are due within one year or the operating cycle of a
business.

 Current liabilities are obligations that must be settled within one year or the normal
operating cycle of the business.
  Examples include accounts payable, short-term loans, accrued expenses, and taxes payable.

 They are listed on the balance sheet and are important for assessing a company's liquidity
and financial health.

What is Accruals, Prepaid

Ans.

Accruals and Prepaid are accounting concepts used to record expenses and revenues in the period
they occur, rather than when cash is exchanged.

 Accruals refer to expenses that have been incurred but not yet paid for

 Prepaid expenses are costs that have been paid for in advance but have not yet been used up

 Accruals and Prepaid help in matching expenses and revenues to the period they relate to

 Accruals and Prepaid are important for accurate financial reporting and decision-making

Entry for Deferred Revenue?

Ans.

Deferred revenue is revenue received in advance for goods or services that have not yet been
provided.

 Deferred revenue is recorded as a liability on the balance sheet until the goods or services
are delivered.

 The entry for deferred revenue involves debiting cash or accounts receivable and crediting
deferred revenue.

 Once the goods or services are provided, the deferred revenue is recognized as revenue on
the income statement.

 Example: Company receives $1,000 in advance for a service to be provided next month.
Entry: Debit Cash $1,000, Credit Deferred Revenue $1,000.

Entry for Sale of Asset.

Ans.

The entry for the sale of an asset involves recording the sale price, removing the asset's cost and
accumulated depreciation from the books, and recognizing any gain or loss.

 Debit the Cash or Accounts Receivable account for the sale price of the asset

 Credit the Asset account to remove the cost of the asset

 Credit the Accumulated Depreciation account to remove the accumulated depreciation

 Recognize any gain or loss by debiting or crediting the Gain or Loss on Sale of Asset account
  Ensure the total debits equal the total credits to maintain balance in the accounting equation

how much is your expectatoin

Ans.

My expectation is to be compensated fairly based on my qualifications and experience.

 I expect a competitive salary that reflects my skills and expertise

 I also expect benefits such as health insurance and retirement plans

 Opportunities for professional development and growth are important to me

 I value a positive work environment and supportive team culture

Experience in US GAAP

Ans.

I have extensive experience in US GAAP accounting standards.

 I have worked with US GAAP accounting standards for over 5 years.

 I am familiar with the principles and guidelines of US GAAP.

 I have prepared financial statements in accordance with US GAAP.

 I have experience in implementing new US GAAP accounting standards.

 I have worked with auditors to ensure compliance with US GAAP.

 I have trained and mentored junior staff on US GAAP accounting standards.

Explain AR process

Ans.

AR process involves invoicing customers for goods or services provided and tracking payments
received.

 Generate and send invoices to customers

 Record payments received from customers

 Follow up on overdue payments

 Reconcile accounts receivable to ensure accuracy

 Provide reports on outstanding balances to management

Materiality Definition

Ans.
Materiality definition refers to the significance or importance of information in relation to a
company's financial statements.

 Materiality is a concept used in accounting to determine the relevance of information to

 It involves assessing whether a particular item or error is significant enough to impact

 Materiality is subjective and can vary depending on the size and nature of the company.

 Examples of material items include large transactions, errors in financial statements, or

 Materiality is important for auditors to ensure that financial statements are accurate and
reliable.

AP Prepost Definition

Ans.

AP Prepost Definition is a term used in accounting to refer to adjusting entries made at the beginning
and end of an accounting period.

 AP Prepost Definition refers to adjusting entries made at the start and end of an accounting
period

 These entries ensure that expenses and revenues are recorded in the correct period

 Examples include accruals, deferrals, and estimates adjustments