Interview Questions

Asset means anything that can be converted into cash. Here in banks, the loans disbursed by Bank to its customers is considered as assets because when they are cleared by them, then they are directly converted to cash.

Financial statements can be prepared from the Adjusted trial balance. A trial balance is a report containing list of all the general ledger accounts i.e, debits and credits contained in the ledger of a business. The types of trial balance include : Unadjusted trial balance, Adjusted trial balance and the Post- closing trial balance.

The financial statements should be prepared in the following order:

Income statement - Statement of retained earnings - Balance sheet

1. Income statement reports revenues and expenses and calculates net income or net loss for the time period.

2. Statement of retained earnings show how retained earnings changed during the period due to net income or net loss and dividends.

3. Balance sheet reports assets, liabilities, and stockholders’ equity as of the last day of the period.

Goods that are excludable include both private goods and natural monopolies.

A commercial bank is a financial body which performs the functions of accepting deposits from the general public and giving short term loans for investment with the aim of earning profit.

A data warehouse is a relational database that is designed for query and analysis rather than transaction processing. It usually contains historical data that is derived from transaction data, but it can include data from other sources. Data warehouses are designed to help you analyze your data.

Generally Accepted Accounting Principles (GAAP) are basic accounting principles and guidelines are concepts that govern the field of accounting.

Accounting principles and guidelines include :

* Business Entity Assumption

* Accounting Period

* Historical Cost Concept

* Full Disclosure Principle

* Cost Principle

* Matching Principle

* Materiality

* Monetary Unit Assumption.