R2r Interview Questions
- What is journal entry for sale of fixed asset?
- What is entry for credit purchase ?
- Wwhat is Accrual?
- What is balance sheet?
- Is closing stock part of trial balance? If yes why , if no why?
- What is the commerce and tyoes of the commerce?
- What you want to change from audit domain to accounts domain? Why change in sector? Why BPO? Are you comfortable for night shift? Passport?
- How do you manage conflicts?
- Why should we hire you?
- What are preliminary expenses ?
- Are you the type of person who likes doing the same thing over and over again, or do you like to change between different projects?
Record to Report Interview questions
1. Difference between Provision and Reserves
2. Cash and accrual method of transaction meaning
3. Why Retained earnings account is required
4. Types of account and golden rules of it
5. Detailed explanation of General ledger and subsidiary ledger
6. Prepaid and accrual journal entries
7. What is tanglible and intangible assets
8. Depreciation on revaluation is done?
9.what is Impairment of assets?
10.What are the types of business transactions in accounting
11.What is Chart of account?
What are the steps involved in record to report?
The record-to-report process typically involves the following four steps:
Consolidation
After the finance and accounting team closes its books, it can begin the consolidation portion of the R2R process. Sometimes called the reconciliation and validation stage, this step involves reviewing the recorded transactions and sorting them into appropriate categories. Because the team may gather financial data from various sources, this step enables them to organize similar information together and ensure they have everything they need to develop reports for stakeholders.
For example, when compiling data from several business units or subsidiaries, the team may perform intercompany eliminations or reconciliations during this step. These processes occur for transactions between two entities within the same organization. The finance and accounting team identifies such transactions and removes them from financial statements. They may eliminate loans or sales made from one entity to another or ownership interest from the parent company in its subsidiary entities.
Transaction recording
In the first step, an organizations finance and accounting professionals record all of its financial transactions. The recording process involves documenting revenues, purchases and expenditures for business units throughout the organization. They gather all data required for creating financial statements and management reports from various sources, including journal entries, general accounting activities or procure-to-pay cycles.
This step is sometimes called the data collection and management stage. Its essential that the data the team collects is accurate, so its members follow established guidelines set by the organization or industry. For example, the generally accepted accounting principles (GAAP) represent a set of financial reporting rules and standards that public companies must follow in the United States. During this step, employees also process the data and transactions, compiling and indexing them to ensure their accuracy and completion.
Q.19 Select two components ofoverhead accounting 1) General ledger 2) Cost center accounting 3) Internal order accounting 4) Bank accounting
Q.20 Posting key depicts_____________ in SAP S/ 1) Debit indicator 2) Credit indicator 3) loss 4) Profit
B. It refers to the financial transactions of an organization which includes only revenue and expenses
Q.13 State if the statement is true or false ‘material master is always maintained by finance team’
Q.18 State if the statement is true or false ‘IFRS is a set of rules which needs to be followed while reporting financial data’.
Why are they important? The R2R process is very important as the reports produced are used by management for strategic decision-making. Accurate reports are vital to meet statutory reporting requirements. Also, R2R managers are tasked with optimizing the overall process to reduce costs.
R2R processes typically include: posting journal entries, reviewing entries and reconciliations, preparing balance sheet reconciliations, preparing cash forecasting statements, preparing various reports as required.
Understanding the needs of the business and ensuring that processes are compliant. Managing the R2R process and ensuring service level agreements are met. Ensuring that the close process is achieved in an accurate manner. Reviewing financial statements for obvious errors or inconsistencies. Managing the preparation of all statutory compliance documentation. Engaging with the finance controller on potential issues. Providing tax audit support. Overseeing improvement projects, including automation and enhanced controls.
Skills needed for this job R2R professionals require excellent organization and analytical skills and the ability to work to tight deadlines. Excellent communication skills are needed, and at more senior levels, individuals should demonstrate strong management skills.
The objective of the R2R team is to reflect the financial status of a company based on timely, complete, and accurate information. This means that the R2R team provides both financial and operational feedback as well as financial statements that are compliant with local accounting standards.
FAQ
What is record to report interview questions?
- Difference between Provision and Reserves.
- Cash and accrual method of transaction meaning.
- Why Retained earnings account is required.
- Types of account and golden rules of it.
- Detailed explanation of General ledger and subsidiary ledger.
- Prepaid and accrual journal entries.
What is the record to report process?
What are the roles and responsibilities for R2R process?
What is R2R process cycle?
