📘 Top R2R Interview Questions and Answers (Record to Report)

🔹 Q1. What is R2R in accounting?

Answer:
R2R stands for Record to Report. It is a finance and accounting process that involves collecting, processing, and delivering relevant, timely, and accurate information to stakeholders. The process includes data entry (record), general ledger, trial balance, reconciliation, and preparation of financial statements (report).

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🔹 Q2. What are the key responsibilities in an R2R profile?

Answer:

• General ledger accounting

• Journal entries preparation and posting

• Intercompany reconciliation

• Fixed asset accounting

• Month-end and year-end closing activities

• Financial statement preparation and analysis

• Balance sheet reconciliation

• Ensuring compliance with accounting standards (IFRS/GAAP)

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🔹 Q3. What are journal entries? Give an example.

Answer:
Journal entries are records of financial transactions in accounting.
Example:
If rent of ₹10,000 is paid in cash:

Rent Expense A/c     Dr. ₹10,000  
   To Cash A/c                ₹10,000

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🔹 Q4. What is the difference between accrual and provision?

Answer:

Basis	Accrual	Provision
Meaning	Recording an expense incurred but not yet paid	Estimating an expected future liability
Nature	Certain	Uncertain (estimated)
Example	Salary for March unpaid	Provision for doubtful debts

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🔹 Q5. What is a trial balance?

Answer:
A trial balance is a report that lists all general ledger balances (both debit and credit) on a specific date. It helps ensure that total debits = total credits before preparing final accounts.

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🔹 Q6. How do you perform month-end closing?

Answer:

• Post all journal entries

• Accrue outstanding expenses

• Reconcile bank statements

• Review general ledger

• Close sub-ledgers (AP, AR, FA)

• Prepare and review trial balance

• Generate financial reports

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🔹 Q7. What is intercompany reconciliation?

Answer:
It is the process of matching and eliminating transactions between related legal entities of the same group to avoid double-counting in consolidated financial statements.

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🔹 Q8. What ERP tools have you used in R2R?

Answer:
Common tools:

• SAP (FI module)

• Oracle Financials

• Microsoft Dynamics

• QuickBooks

• Tally ERP

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🔹 Q9. What are adjusting entries?

Answer:
Entries made at the end of an accounting period to update account balances before financial statements are prepared.
Example: Accrued expenses, prepaid expenses, depreciation, etc.

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🔹 Q10. How do you ensure accuracy in financial reporting?

Answer:

• Regular reconciliations

• Validating journal entries

• Review trial balances

• Cross-checking ledgers

• Following audit and compliance procedures

• Using standardized templates

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📝 Conclusion:

R2R is a crucial part of financial accounting and reporting. For interview success, focus on:

• Concepts of journal entries

• Accounting standards

• Reconciliations and reporting

• ERP tools and automation knowledge

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