Accounting Interview Preparation Guide:-This section of Accounting Interview Questions and Answers will unlock your potential regarding all aspects of Accounting.
Accounts is base of any growing business, any business can not grow as an international organization with out Accounting. So if your are a marketing person or having financial expertise then you must have to know about the accounting interview questions and answers techniques here with us.
205 Accounting Questions and Answers:
Accounting Interview Questions 1 :: Why do you want to be an accountant?
A stereotypical answer to this question is that accountancy offers a respected professional qualification which can lead on to a wide range of opportunities in business. This is all true, but it doesn’t answer the question of why YOU want to become an accountant – and if you give as general an answer as this, you can expect to be questioned in detail on the nature of the qualification and the opportunities you see it leading to.
Much of the income of the larger accountancy firms now comes from consultancy and related services rather than from audit. Even in audit you will spend much of your time visiting clients and asking questions, so good interpersonal skills are important. Your answer to this question should probably make this point.
Accountancy is now a fast changing profession, so they are looking for individuals with initiative who can manage change. Ensure that you have a considered answer to this question. It is bound to be asked!
2 :: Why did you choose the A-levels you did?
The A-level subjects you chose are largely irrelevant, so answer this question honestly, although A levels which demand numeracy, analytical skills and communication skills may help.
If you have not done A levels, but entered university by some other route such as an Access course, explain why this was so – you may find the selectors will in this case put a lot of weight on your degree performance.
A-levels are close to the heart of Accountancy firms. This is because your performance in the profession’s examinations have been shown to correlate quite closely to A-level examination performance. Many firms will have a points requirement, but will also be interested in your reasoning behind the choice of subjects.
Accounting Interview Questions 3 :: Were you happy with the grades you achieved at A-level?
Chartered Accountancy firms put a lot of weight on A-level grades as these have been found to be the best predictors of success in professional examinations.
If your A levels were not outstanding, this may sometimes depend more on the quality of the school you attended than your ability. In some inner-city schools it may be that a mediocre A-level performance that you achieved might have been the best in your school – if this is so, then make it clear. An average performance at a weak school academically may be the equivalent of a much better performance at some prestigious establishments.
Similarly, if there were any other external factors, such as illness, that may have affected your grades, tell the interviewers – but don’t sound as though you are making excuses.
4 :: How did you chose your university?
Be honest, but try to show evidence for careful consideration and logic in your choice. The interviewer may follow up this question by asking if, with hindsight, you felt you made the right choice, or how you feel the course you have followed could be improved. Constructive and thoughtful criticism is appreciated, but try to balance any criticisms with positive points too.
You could include in your answer any of the following:
* Advice & guidance from teaching/careers staff at school or college
* Geographical preferences
* Availability of a particular course
* The research and/or teaching quality of institutions
* Cost factors
* The reputation of the institution, or individual members of staff
Accounting Interview Questions 5 :: What qualities have you got that would make you a good accountant?
Aside from the obvious ones such as numeracy and interpersonal skills, key skills will include determination and self discipline (to get through the difficult professional examinations) and an interest in the business world generally. An ability to work in (and ultimately lead) teams, strong analytical skills, good verbal and written communication skills and curiosity (particularly on the audit side) are some of the others you could mention – if you aren’t strong in some of these areas then you may have problems making a persuasive case for yourself.
You are likely to be asked many questions seeking evidence of these particular competencies and will be expected to give examples which are backed up with evidence: for example, if asked about your leadership qualities, you should give an example of where you led a group successfully rather than just stating ‘people always look to me to take the lead’.
Accounting Interview Questions 6 :: Why have you applied to our firm?
Quantifiable differences between chartered accountancy firms are often found on the basis of size rather than between individual firms. In general, the Big Four offer more international opportunities, household-name clients, more structured training, the chance to specialise in particular industries … Smaller firms usually market themselves on factors such as greater client contact, greater variety of work (shorter audits at smaller clients), early responsibility, work-life balance, friendliness and smaller audit teams. In the end, graduates often choose between similar types of firm on the basis of the company culture and atmosphere, which often boils down to which of them seemed the friendliest at interview!
The interviewer will have expected you to have done your research on the firm – not just reading the careers section of their website but looking at the pages for clients, press releases etc. You should also look in the general business press for mentions of larger firms. Factors you could mention include:
Accounting Interview Questions 7 :: What have you read in the newspapers in the last few days that particularly interested you?
Questions like this are testing your general interest in business and finance and your commercial awareness. You will be expected to come up with stories from the political, finance or other specialist sections of the papers that may be relevant to the firm or its clients.
Make sure that you read a quality newspaper regularly so that you are up to date with current business and financial affairs (One of the Big Four firms asks interviewees if they read the Financial Times). Try not to side with a particular opinion. Do not be party political! You should aim to provide a balanced assessment of a topic of interest to you. Explain why it interests you. Be prepared for follow-up questions.
Accounting Interview Questions 8 :: What other careers are you considering?
The obvious answer would be careers in banking and insurance and other finance areas, but it is OK to mention any career here as long as you can argue your case effectively e.g. by demonstrating that the skills required are similar to those of an accountant.
Interviewers will be looking for evidence that you have analyzed your skills and interests in a logical manner when coming to a career decision, and also for signs of your commitment to accountancy.
However, in an interview you do not HAVE to tell the truth, the whole truth and nothing but the truth. If you admit to also applying for highly-competitive areas such as journalism or the Diplomatic Service, the interviewer is likely to assume that accountancy is your second choice. Similarly, you might find the interviewer challenging your interest in business if you said that social work or nursing was also an option.
Accounting Interview Questions 9 :: Tell me about a situation where you showed determination?
Questions like this are designed to bring out evidence of the qualities that you have which you will need to do the job. Be very well prepared with examples of situations where you have used these skills. If you have answered a few demanding graduate application forms, you will have come across most of these questions and prepared answers.
Other situations which are frequently asked about include the following:
Give an example of when you:
* Planned something.
* Took on responsibility.
* Led a team.
* Had to cope with pressure.
* Dealt with an unreasonable person.
* Had to make a difficult decision?
* Used initiative
* Influenced others.
* Solved a problem.
Accounting Interview Questions 10 :: What is your greatest achievement and why?
Before your interview think through everything you have done in the last five years and try to find at least one example which fits each of these situations.
Don’t worry if your examples are not earth-shattering, as long as they give some evidence for possessing the quality in question.
You can answer these questions by first describing the SITUATION and/or TASK you had to achieve, then the ACTION you took in the situation and finally the RESULT or outcome. Some interviews consist almost entirely of these types of questions, in which case the order of the interview is set in advance with a standard list of questions. Even more so than usual answer questions honestly – honesty is essential in the job!
Accounting Interview Questions 11 :: Are there any questions you would like to ask?
Before your interview think through everything you have done in the last five years and try to find at least one example which fits each of these situations.
Don’t worry if your examples are not earth-shattering, as long as they give some evidence for possessing the quality in question.
You can answer these questions by first describing the SITUATION and/or TASK you had to achieve, then the ACTION you took in the situation and finally the RESULT or outcome. Some interviews consist almost entirely of these types of questions, in which case the order of the interview is set in advance with a standard list of questions. Even more so than usual answer questions honestly – honesty is essential in the job!
Accounting Interview Questions 12 :: How many invoices on average do you handle on a weekly/monthly basis?
Accounting Interview Questions 13 :: What are the steps to take before you approve an invoice for payment?
Accounting Interview Questions 14 :: What information do you require before you approve an invoice for payment?
Accounting Interview Questions 15 :: Tell me about an invoice discrepancy you discovered and how you resolved it.
Accounting Interview Questions 16 :: Have you ever been involved in an invoice dispute? How did you manage the problem?
Accounting Interview Questions 17 :: Explain the accounts payable cycle.
Accounting Interview Questions 18 :: What accounts payable applications are your familiar with?
Accounting Interview Questions 19 :: Detail your responsibilities in accounts receivable.
Accounting Interview Questions 20 :: What role did you play in collections?
Accounting Interview Questions 21 :: What software applications have your used for accounts receivable?
Accounting Interview Questions 22 :: What information is included in a bill for services?
Accounting Interview Questions 23 :: What was your average accounts receivable days outstanding/days sales outstanding?
24 :: What are the most important goals of accounts receivable?
Accounting Interview Questions 25 :: Which accounting applications are your familiar with?
Accounting Interview Questions 26 :: Describe the advantages and disadvantages of the different accounting packages/systems you have used recently in your accountant jobs.
Accounting Interview Questions 27 :: Give me examples of the accounting reports you have prepared.
28 :: Describe any accounting process that you have developed or revised.
Accounting Interview Questions 29 :: What do you consider to be the biggest challenge facing the accounting profession today?
In response to the changing market accountancy professionals have to provide more management and consulting services, in addition to financial management. They have to assume a greater advisory role and develop more complex and flexible accounting systems.
Then continue to explain how you can meet this challenge.
Accounting Interview Questions 30 :: Other accounting interview questions to expect when you interview for an accountancy job include:
How much money have you saved the company and how did you do this?
What aspects of hands-on accounting did you participate in?
Give examples of internal control procedures that you have developed and maintained.
What was your interface with the budget process?
Discuss your experience in financial analysis of company/ad hoc projects.
Tell us about the financial forecasting you have been responsible for.
What role did you play in the audit process?
What processes did you use to evaluate financial risk?
Which management reports have you prepared?
Discuss your experience in tax planning and preparation.
How do you keep updated on all the accounting rules and techniques?
Accounting Interview Questions 31 :: What is the relationship between cost accounting financial accounting and managerial accounting?
Financial accounting relates to the information presented based on past events and records.
Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends.
Financial accounting relates to the information presented based on past events and records.
Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends.
32 :: What is the difference between cost accounting management accounting and financial accounting?
For simplistic purposes, there is not much, if any, difference between “cost accounting” and “management accounting”. These terms refer to the accounting techniques used internally by a company’s management to determine the costs of running the business and help in decision making. For example, reports that compare budgeted to actual expenses are commonly used to monitor the successful management of a specific department or store within a larger enterprise.
Financial Accounting refers to accounting practices that result in financial statements used by various stakeholders of the business. Stakeholders may include management and employees, as well as vendors, suppliers, customers, bankers and regulators. The accounting practices used in compiling financial statements are referred to as “GAAP” or the generally accepted accounting principles as set forth by the Financial Accounting Standards Board in the U.S. In the U.S., external financial reports issued by public and/or regulated companies must comply with GAAP.
Some accounting methods used in cost accounting are not recognized by GAAP and therefore can only be used internally.
Accounting Interview Questions 33 :: Where the financial accounting fails the cost accounting for is rescue but still there are some limitations deficiencies in the system?
34 :: What are the effects of international accounting standards on accounting practices of developing nations?
Adoption of international accounting standards is extremely costly. Developing counties usually use accounting standards that are most beneficial to them (based on who they trade with to ease accounting for transactions) or just another country’s GAAP that works for the developing country. Ex. Mexico very closely resembles U.S. GAAP because of NAFTA and the quality of U.S. GAAP.
Should IFRS be implemented in developed counties, developing counties might be forced to adopt them as well in order to maintain trade relations. This could be extremely costly for smaller developing counties.
Accounting Interview Questions 35 :: Does the accounting system appear to facilitate one specialty from financial, auditing, or cost managerial or tax accounting over the others?
The elegance of Accounting is that it is a purveyor of information, organized into systems, and exploited for a particular purpose. That is because Accounting is vague. Interestingly, information from accounting can be split into to methods: 1. Valuation 2. Evaluation
1. Valuation – This is the type of information that financial/Tax/Cost accounting attempts to tackle. What is that worth? How much of it came from this source of value? What will be the asset be worth in ten years? All of these questions are valuation methods and accounting provides an informational standpoint from which to analyze these questions and ascertain an answer to them.
2. Evaluation – This would be your classical managerial accounting. Did employee A provide hire effort? What should compensation look like? How are we performing? All are evaluation questions. Evaluation is especially important to Internal Audit and the control environment. You can easily image a professor conducting evaluation accounting to assign proper reward to students who exhibit learning through testing.
Accounting Interview Questions 36 :: What is the difference of Cost Accounting and Financial Accounting?
Accounting Interview Questions 37 :: What is the distinction between cost accounting and management accounting?
Management accounting relates to the provision of appropriate information for decision-making, planning, control and performance evaluation.
Accounting Interview Questions 38 :: What is the difference between financial accounting and management accounting?
Very briefly, the difference has to do with the needs of the user.
Management accounting for is the internal users of an entity and Financial Accounting is for the external users.
Internal users (management) may be interested in the cost of making an item using process A versus process B. Whereas External users are mostly interested in the overall results of those management decisions.
Accounting Interview Questions 39 :: What is the difference between the accrual accounting and cash accounting?
The Cash Basis of accounting reports only transactions that have been completed in the current reporting period – or – what has “hit” the checking account (assuming all funds are deposited and disbursed only from that account) – The Accrual Basis of accounting reports all transactions that the entity has entered into and includes the asset, liability, income and expense related them.
In addition, the Cash Basis of accounting is considered OCBOA (Other Comprehensive Basis of Accounting ~ Other than GAAP) and the Accrual Basis (when implemented properly and fully) is considered GAAP (Generally Accepted Accounting Principles).
EDIT – The Accrual Basis is more desirable from a user’s standpoint as it includes transactions that may exist were completed after the report dates that were initiated prior to the report date. It is generally more complete and more reliable than the cash basis – however, that does assume that the person preparing the statements has expertise of, not simply a cursory working knowledge of, GAAP and the accrual basis. For example, a set of financial statements printed out of QuickBooks are not necessarily GAAP compliant (or correct) although they may appear to be at first glance or to a layperson.
40 :: When a company s accounting year-ends on a day that is other than the end of the calendar year what is called in accounting?
Accounting Interview Questions 41 :: Is there a difference between accounting for conversion of bonds and accounting for the conversion of preferred stock?
Accounting Interview Questions 42 :: Is push down accounting accepted under generally accepted accounting standards?
Accounting Interview Questions 43 :: Key Difference between Indian accounting standards and international accounting standards is..
44 :: What are the items that are to be debited in accounting and what are the items that are to be credited in accounting?
This depends on the nature of the account and the thing you wish to achieve. For example, to increase cash you would debit the cash account, but if you wanted to decrease it, you would credit it. There are all sorts of accounts and they have different normal balances.
The thing to remember is that every journal entry must have equal debits and credits. So for example to increase a contra asset account like Allowance for Doubtful debts you would credit Bad Debt Expense to increase it and credit Allowance to increase that!
Accounting Interview Questions 45 :: Is an “account receivable” and “goodwill” real accounts in accounting?
Real accounts, i.e. Balance Sheet accounts are ongoing perpetual records and represent “real” items; cash, receivables, inventories, accounts payable, invested capital, etc., etc. Accounts receivable and goodwill therefore are both real accounts as they have value in and of themselves.
Nominal accounts represent items of income and expense. Nominal accounts have no balances at the beginning of an accounting period and change as various debits and credits are applied because of activity of income and expense throughout the accounting period. At the end of the accounting cycle, the nominal accounts are returned to zero by debiting them by an amount equal to their credit balance if such exists, or crediting an account if it has a debit balance. The offsetting entry of each of these is to a Profit or Loss Account. If after all accounts are zero, the P&L account has a debit balance then operations were profitable (income exceeded expenses), and conversely with a credit balance a loss was incurred. The P&L is then “closed” by either debited or crediting to bring it to zero, whichever is appropriate, with the offsetting entry going to “Retained Earnings”, a real account, and bringing the Balance Sheet into balance and leaving all nominal accounts at zero.
To put it another way if all debits and credits of the General Ledger are added up, then they will both be equal. However, if only the debits and credits of the nominal accounts are added up there will be a difference and that di
Accounting Interview Questions 46 :: Why do users of accounting Information need accounting information?
Internal users of accounting (mostly managers) use internal accounting information in order to plan.
Accounting Interview Questions 47 :: What is an EA in accounting?
48 :: What is accounting?
49 :: Who uses accounting?
50 :: What is account in accounting?
51 :: What are the different branches of accounting?
1- Cost Accounting
2- Financial Accounting
3- Management Accounting
52 :: Is financial accounting necessary?
53 :: What is fair value accounting?
54 :: What are accounting principles?
The Accounting Principles are the assertion rules of accounting and the application of these rules, method, & procedures to actual practice of accounting. These Accounting principles have been divided into
A. accounting concepts
B. accounting conventions
55 :: What is fiduciary accounting?
56 :: What are the uses of journal in accounting?
57 :: What does overhead mean in regards to accounting?
58 :: What are accounting entities?
59 :: What is an accounting transaction?
60 :: What is accounting ethics?
61 :: What does the abbreviation dr mean in accounting?
‘Dr’ means Debere in Latin stands for ‘what comes in’ or in simple words whatever assets the business owns or the expenses it has to pay comes under debit.
While ‘cr’ means credere in Latin means ‘what goes out’, in simple words whatever liabilities business owns, or the income it earned during the year comes under credit.
62 :: What does the abbreviation m mean in accounting?
63 :: What is computerized accounting?
Accounting is the method in which financial information is gathered, processed, and summarized into financial statements and reports.
The purpose of accounting is to provide information used in decision-making. Accounting may be viewed as a system (a process) that converts data into useful information.
Information processes include:
* Recording
* Maintaining
* Reporting
Every business has numerous processes. Some are simple, others complex and cumbersome. However, as the business grows, acquires new customers, enters new markets, and keeps pace with constant changes in statutory regulations… the company will need to maintain highly accurate and up-to-date accounting, inventory, and statutory records.
This is where a computerized accounting helps simplify, integrate, and streamline all the business processes, cost-effectively and easily.
64 :: What is normative accounting?
65 :: What is accounting normalization?
66 :: Why are Accounting Standards necessary?
Accounting standards are necessary to promote high quality financial reporting. The fundamental role of accounting is to communicate economic information about businesses and other organization to various stakeholders including government, investors, shareholders, suppliers, lenders, customers, and the public. These stakeholders use such information to take decisions and to assess the stewardship of people appointed to manage such organizations. If this information were not of a high quality standard, then the stakeholders would be unable to take effective decisions that will benefit them. For example, if a financial report were manipulated to show higher profits, investors would hold on to their shares with the belief that the company is doing well.
Accounting standards came to be developed from the mid sixties onwards to promote the integrity of the accounting profession by way of ensuring uniformity in the way accountants report transactions in their books and in their preparation of the final accounts of businesses. This is largely aimed at boosting the confidence of stakeholders, particularly shareholders and potential investors in the accounting profession.
Good and useful information should have the essential characteristics of understandability, comparability, relevance, and reliability in order to play its role effectively.
Accounting standards serve to promote the understandability, comparability, relevance, and reliability of financial reports.
67 :: What is Use of statistics in accounting?
Well, in many accounting situations, there is too much data to go through all this. For example, if we are looking about Ford motor corp., and looking at some specific data, their may be too much to analyze, so we take a sample. Then we need to know how big a sample to take so we can say with 95% confidence that our results are representative of all the data.
Statistics tells us what sample size we need.
68 :: What are the 4 phases accounting?
1. Recording
2. Classifying
3. Summarizing
4. Interpreting
69 :: What is accounting management?
Accounting Management (Business) is the practical application of management techniques to control and report on the financial health of the organization. This involves the analysis, planning, implementation, and control of programs designed to provide financial data reporting for managerial decision-making. This includes the maintenance of bank accounts, developing financial statements, cash flow, and financial performance analysis. Accounting management is a mandatory knowledge module of any MBA program.
Accounting (IT) management: Accounting is often referred to as billing management. The goal is to gather usage statistics for users.
Using the statistics the users can be billed and usage quota can be enforced.
Examples:
* Disk usage
* Link utilization
* CPU time
70 :: What is a ledger in regards to accounting?
71 :: What is creative accounting?
72 :: What are the functions of accounting?
73 :: What is accounting transaction?
74 :: What are the different branches of accounting ?
Financial accounting refers to accounting for revenues, expenses, assets, and liabilities. It involves the basic accounting processes of recording, classifying, and summarizing transactions.
– Cost accounting is the branch of accounting dealing with the recording, classification, allocation, and reporting of current and prospective costs.
– Managerial accounting is the branch of accounting designed to provide information to various management levels in the hospitality operation for enhancing controls.
75 :: What are the different fields of accounting?
76 :: What is an accounting loss?
77 :: What is Executive Accounting?
78 :: What is accrual accounting?
Accrual Accounting refers to the recording of financial transactions once an economic event has happened and it is not based on the movement of cash.
For example, in Accrual Accounting if you have office rent of $1000 per month, you would record the expense of $1000 each month, regardless if you have actually paid the rent or received an invoice from the property owner.
Most individuals live our daily lives in the cash basis of accounting. We get our paychecks we have revenue, when we pay our car note we have expense.
79 :: What is accounting period?
80 :: What are the nine accounting cycles?
1. Collecting and Analyzing Data from the occurred transaction.
2. Journalize Transaction.
3. The general journal entries are posted to the General Ledger, which is organized by account.
4. Prepare an unadjusted trial balance .At the end of the period, double-entry accounting requires that debits and credits recorded in the general ledger be equal.
5. Prepare adjustments Period-end adjustments are required to bring accounts to their proper balances after considering transactions and/or events not yet recorded.
6. Prepare an adjusted trial balance: As with an unadjusted trial balance, this step tests the equality of debits and credits.
7. Prepare financial statements: Financial statements are prepared using the corrected balances from the adjusted trial balance.
8. Close the accounts: Revenues and expenses are accumulated and reported by period, a monthly, either quarterly, or yearly
9. Prepare a post-closing trial balance: fold: to determine that all revenue and expense accounts have been closed properly and to test the equality of debit and credit balances of all the balance sheet accounts.
81 :: What is Control in Accounting?
A control is some type of device or procedure that attempts to limit the possibility of a transaction to be manipulated.
What are different Branches of accounting?
For information, accounting field could be divided into a few branches, which is as follows:-
i) Management Accounting
ii) Financial Accounting
iii) Taxation,
iv) Auditing
Management Accounting is consider a future prediction on the business cost which will be useful for the management (internal users) to make their decision, projection, planning and control their business activity.
The example of the M.A reporting consists of Sales Budget Report, Projection P & L for the year, Monthly Performance Review Report, etc.
The format is not standardized from one business to another and it will be more depending to the need and requirement of the company.
82 :: What is partnership accounting?
83 :: What is the definition of accounting?
84 :: What is DD and A in oil and gas accounting?
85 :: What is the Importance of accounting standards?
86 :: Who is considered the father of accounting?
87 :: Explain Accounting 101?
88 :: How is an accounting department structured?
89 :: What is the meaning of Scrap Value in accounting?
90 :: What are the differences between accounting and auditing?
Accounting Interview Questions 91 :: Who created SnapIt accounting?
SnapIt accounting was developed in South Africa by Joe Schoemann Systems.
System Analysis: Joe Schoemann
Programming: Danny Schoemann
Accounting Interview Questions 92 :: What is accounting chart of accounts?
Accounting Interview Questions 93 :: What is the difference in Accounting and Marketing and what is so different about them?
94 :: What is peach tree accounting?
95 :: What are accounting rules called?
i.e.Debit what comes in, and credit what goes out
Debit the receiver and credit the giver
Debit all expenses and loss and credit all incomes and gains.
96 :: What is an interlocking accounting system?
97 :: What is accounting for plant assets?
98 :: What are the basic assumptions in accounting?
Economic Entity Assumption
Going Concern Assumption
Monetary Unit
Periodicity Assumption
99 :: What are Source documents in accounting?
100 :: What is mutual fund sub accounting?
101 :: What is Purchase returns Accounting.
102 :: What is the difference between accounting and bookkeeping?
Bookkeepers perform a critical function for the firms and organizations they serve. Regularly challenged to maintain precise and accurate records, bookkeepers produce the vital reports that keep management up to date on the financial condition of their company.
Bookkeepers are responsible for maintaining the “business checkbook”, much like a personal checkbook. They record routine money transactions like customer payments into a “cash receipts journal” and checks to vendors into a “cash disbursement journal.” They also process payroll. At month end they transfer or “post”, the “journal” totals to the “general ledger” in preparation for financial statements prepared by the accountant.
Accountants are responsible for the design and management of the financial systems that bookkeepers use. They prepare monthly financial statements and tax returns at year-end. Accountants may also prepare budgets for management and loan proposals for bankers; and perform cost analysis for the company’s products or services.
Trust, reliability, and confidentiality head the list of qualities that employers look for when selecting and promoting Certified Bookkeepers. Strong organization and communication skills are also important. Not only are bookkeepers challenged to record routine money transactions, to reconcile accounts and to locate misguided transitions, they also must be able to paint a picture–both verbally and on paper–of all the activities within their assigned area of responsibility
103 :: What are the disadvantages of manual accounting?
2) Manual records are subject to greater human error
3) Business can see itself in fines and penalties if records are lost
4) Manual records are easier to be falsified, modified, altered, or vanished, as compared
to computerized records, which become very safe when using passwords, firewalls,
and back-ups.
104 :: How many accounting standards are currently published?
105 :: What is the basic accounting equation?
106 :: What are the elements of the accounting equation?
The elements of accounting are Assets, Liabilities, and Owner Equities.
The way to remember this would be through the acronym ALOE
The accounting equation is Assets = Liabilities + Owners’ Equities
107 :: In which ways is math used in accounting
Primarily only addition, subtraction, multiplication, and division are used in accounting as follows:
Addition: Summing accounts for inclusion in financial statements (i.e. many different cash accounts are summed to equal “cash” in balance sheet), adding items in inventory to determine accurate counts, adding all outstanding checks (written but not cashed) to reconcile a bank statement, etc.
Subtraction: Determine net income and various margins by subtracting expenses from revenues, calculating variances between actual and budgets.
Multiplication: Tax rates by gross pay to calculated and remit correct taxes, extrapolating period results (i.e. 6 months sales x 2) to estimate annualized results, calculating present value of cash flows using given factors, calculate sales tax on sales, etc.
Division: Calculate various ratios such as asset turnover, operating margins, etc.
Addition and subtraction is used most often and today is nearly 100% automated with computerized applications. Multiplication and Division is used “primarily” for analysis of financial results (with some exceptions noted above).
Accounting Interview Questions 108 :: What are the limitations of accounting ratios?
Accounting Interview Questions 109 :: What qualification do you need to become an accounting professional?
As an accounting professional in the state of Maryland, the requirements are 150 credit hours in order to sit for the CPA examination. The exam is given in 4 parts and all 4 parts can be taken separately. Once you have passed all 4 for parts of the exam, you will be qualified as a Certified Public Accountant.
Although the CPA exam is required for all states, the credit qualification may differ for your state. The department of labor and licensing for your particular state will have more information on the items needed in order to sit for the CPA exam.
As an accounting professional in the state of Maryland, the requirements are 150 credit hours in order to sit for the CPA examination. The exam is given in 4 parts and all 4 parts can be taken separately. Once you have passed all 4 for parts of the exam, you will be qualified as a Certified Public Accountant.
Although the CPA exam is required for all states, the credit qualification may differ for your state. The department of labor and licensing for your particular state will have more information on the items needed in order to sit for the CPA exam.
Accounting Interview Questions 110 :: Definition of push down accounting
Accounting Interview Questions 111 :: What are cost accounting and its applications?
112 :: What is meant by public accounting?
Accounting Interview Questions 113 :: Define Tally Accounting
Accounting Interview Questions 114 :: Why are accounting firms needed?
Accounting firms come in handy for many reasons. Some of the smaller ones: Businesses will use them to calculate payroll and the accounting firm will calculate the amount of taxes taken out.
Company income tax returns, accounting firms will usually represent their work if the company is audited by the IRS. Accounting firms also give advice to companies on how to spend their money to save tax dollars and advice on tax shelters.
Accounting Interview Questions 115 :: Why does the accounting equation have to balance?
Accounting Interview Questions 116 :: Contrast bookkeeping and accounting
Accounting Interview Questions 117 :: Why Accounting is important in business?
Accounting Interview Questions 118 :: What do you mean by material facts in accounting?
Accounting Interview Questions 119 :: What is the definition of manual accounting?
Accounting Interview Questions 120 :: How does accounting contribute to the community?
Accounting Interview Questions 121 :: What is the definition of offset accounting?
Accounting Interview Questions 122 :: Accounting for VC money in financials
Accounting Interview Questions 123 :: What is the relationship between bookkeeping and accounting?
Bookkeepers perform a critical function for the firms and organizations they serve. Regularly challenged to maintain precise and accurate records, bookkeepers produce the vital reports that keep management up to date on the financial condition of their company.
Bookkeepers are responsible for maintaining the “business checkbook”, much like a personal checkbook. They record routine money transactions like customer payments into a “cash receipts journal” and checks to vendors into a “cash disbursement journal.” They also process payroll. At month end they transfer or “post”, the “journal” totals to the “general ledger” in preparation for financial statements prepared by the accountant.
Accountants are responsible for the design and management of the financial systems that bookkeepers use. They prepare monthly financial statements and tax returns at year-end. Accountants may also prepare budgets for management and loan proposals for bankers; and perform cost analysis for the company’s products or services.
Trust, reliability, and confidentiality head the list of qualities that employers look for when selecting and promoting Certified Bookkeepers. Strong organization and communication skills are also important. Not only are bookkeepers challenged to record routine money transactions, to reconcile accounts and to locate misguided transitions, they also must be able to paint a picture–both verbally and on paper–of all the activities within their assigned area of responsibility
Accounting Interview Questions 124 :: Explain the concept of responsibility accounting
Accounting Interview Questions 125 :: What is a difference between public and private accounting?
Public accounting includes any accounting work that a company performs for another company. Examples would be audits, tax compliance, consulting, etc. The “Big 4” (KPMG, Deloitte & Touché, Price Waterhouse Coopers, and Ernst & Young) are the dominant firms that provide public accounting services.
Private accounting is accounting work that is done for your own company. Every company has some form of an internal accounting department and those employees would be considered private accountants.
Accounting Interview Questions 126 :: What is definition of a cash float in accounting?
Accounting Interview Questions 127 :: What is the important of computerized accounting to manual?
Accounting Interview Questions 128 :: Define social responsibility accounting
Accounting Interview Questions 129 :: What are the disadvantages of back-flush accounting?
One of the main disadvantages of the system is that it only works under some quite strict requirements. If these are not met, the system will become unbalanced and may be quite unusable, or a nightmare to maintain.
Standard costs must be reliably estimated and variances kept to a minimum. The premise of the system is that a sale triggers the manufacturing process, therefore buildup of work in progress or finished goods needs to be avoided Another drawback is that detailed information for management purposes may not be available where needed, and the production control therefore needs to be all the stronger. The cost accounts used in back-flush accounting may be more difficult to reconcile to financial accounts needed for reporting
Accounting Interview Questions 130 :: Discuss the consistency concept in accounting
Accounting Interview Questions 131 :: What is a register when referring to accounting or bookkeeping?
Accounting Interview Questions 132 :: What are the Accounting entries for branch accounts?
DR investments in branch
Cr cash
Cash sent to branch
Accounting Interview Questions 133 :: What does the word credit mean in terms of accounting?
The word “credit” is part of the equation of double entry bookkeeping.
In order for bookkeeping entries to balance, there must always be a debit (left side, abbreviated by “dr”) and credit (right side, abbreviated by “cr”) entry that equal one another.
For example, to record an Office Supply Store purchase (on account ~ a payable), the entry would be:
Office Supplies Exp $500.00(dr)
Accounts Payable $500.00(cr)
If an entry does not balance the totals for debits and credits, your books will be out of balance.
Accounting Interview Questions 134 :: What does it mean to do accounting training outside of public practice?
Accounting Interview Questions 135 :: In accounting, are assets a permanent account?
Accounting Interview Questions 136 :: Define “book value” as applied to accounting
Accounting Interview Questions 137 :: In terms of accounting the trial balance when is it taken?
Accounting Interview Questions 138 :: What is marginal cost?
Accounting Interview Questions 139 :: What steps would you take before approving an invoice for payment?
1) Validate the invoice once it matched for checking any holds.
2) If workflow is implemented, then initiate approval for the invoice. Once the invoice is approved/Approval not required (status in case WF is not implemented) you can go for payments.
3) Create accounting after approval of invoice. Finally, for payments you need to format and build.
Accounting Interview Questions 140 :: What is meaning of invoice?
Invoice is a statement which contains the under mentioned details compulsorily.
1. Invoice Number
2. Invoice date
3. Name and address of the person
4. Name and address of the person to whom invoice is made (Buyer of goods and service)
5. Description of goods / services involved
6. Applicable rates and taxes with percentages
7. Rate of the goods / services
8. Quantity of the goods and services
9. Quality or any other specifications
10. Price / Value of the goods and services
11. Invoice must be signed by the person making it
12. Terms and conditions of making the payment
Accounting Interview Questions 141 :: What procedure for excess payment to supplier I would like know without adjusting invoice that means how supplier will send back excess amount how do in oracle apps?
Accounting Interview Questions 142 :: What is the difference between Consigner and Consignee?
Accounting Interview Questions 143 :: What is FBT (Fringe Benefit Tax)?
Accounting Interview Questions 144 :: If assume we paid 50/- as an advance for worth or 100/- goods, but our supplier sent only up to 25/- worth of goods. Know my question is that we want to close the transaction now and how it possible? What about VAT like Tax Setups in AP and AR? What about the SWEEP command in AP?
Accounting Interview Questions 145 :: What are premises in accounting sense? What is VAT adjustment?
Accounting Interview Questions 146 :: What is the Provision? What is the Entry for Provision?
Accounting Interview Questions 147 :: What are the advantages of Computer accounting over Paper accounting?
Accounting Interview Questions 148 :: How to prepare finalization accounts?
Accounting Interview Questions 149 :: What is Departmental Accounting? Give an example
Accounting Interview Questions 150 :: What is Service Tax & Excise? How will it be charged?
Accounting Interview Questions 151 :: What is Capital Budget?
Accounting Interview Questions 152 :: What is purchasing order?
Accounting Interview Questions 153 :: What is vendor?
Accounting Interview Questions 154 :: What is SLA?
Accounting Interview Questions 155 :: What is debit and credit note?
Accounting Interview Questions 156 :: What is the difference between Accounts and Finance?
Account is the detailed record of a particular asset, liability, owners’ equity, revenue, or expense.
Financial Accounting is the area of accounting concerned with reporting financial information to interested external parties
Accounting Interview Questions 157 :: What is the dual aspect concept?
Accounting Interview Questions 158 :: What is depreciation and how many types are there. Please give details?
Accounting Interview Questions 159 :: What is cash flow and fund flow?
Accounting Interview Questions 160 :: What is capital gain?
Accounting Interview Questions 161 :: What are bills receivable?
Accounting Interview Questions 162 :: What is deferred account?
Accounting Interview Questions 163 :: What are MIS reports and do you prepare it?
MIS is management information system. In addition, MIS report is reporting information of reports like efficiency of wing or a department of a company.
IF we take BPO (Call center) sector as example, MIS consists of efficiency of agents, Average time taken hold time etc, and passing this to the management level for their analysis.
Accounting Interview Questions 164 :: What is your role in planning?
Accounting Interview Questions 165 :: How can you do credit control?
2. For good creditor, give discounts & offers
3. For bad creditor, inform your position of willingness but inability to sustain relationship keeping in mind our business position.
Accounting Interview Questions 166 :: What is bank reconciliation statement?
Accounting Interview Questions 167 :: What are the functions of manger -accounts and manager-finance? Explain in detail.
Accounting Interview Questions 168 :: What are the extraordinary items?
Accounting Interview Questions 169 :: What are the fictitious assets?
Accounting Interview Questions 170 :: What are the Steps involved in Project implementation?
Step involved in project implementation:
► Identification of the need
► Idea generation and screening of ideas
► Feasibility Study
► Project Development
► Implementation
► Controlling
Accounting Interview Questions 171 :: What are time sheets? How are they maintained?
Accounting Interview Questions 172 :: What is mean by Working Capital?
173 :: What is shadow balance?
Shadow Balance in bank accounts is the balance unto which the subsequent debits can be posted.
Shadow Balance = Book Balance – Debit (yet to be authorized for posting).
Example: Book balance is 1000. There is a debit of 500. The debit is posted in the system and is sent for authorization. Now the Account shows a Shadow Balance of 500.
Accounting Interview Questions 174 :: What is meant by balancing?
Balancing means equalizing debit and credit side totals in a T-account.
If there is a deficit on side that is, debit, or credit a suspense account is opened with the balancing figure.
Accounting Interview Questions 175 :: What is the difference between inactive accounts and dormant account?
176 :: What is meant by turnover?
Accounting Interview Questions 177 :: What is meant by calendar maintenance?
Accounting Interview Questions 178 :: What is meant by daily accrual and booking?
Accounting Interview Questions 179 :: What is an operative accounts?
Accounting Interview Questions 180 :: What is balance sheet and off balance sheet?
Accounting Interview Questions 181 :: What is customer account?
Accounting Interview Questions 182 :: What is retail banking?
Accounting Interview Questions 183 :: What is inventory management?
Accounting Interview Questions 184 :: What is the difference between personal account real account and nominal account?
The total business transactions are divided in to three They are Transactions related to persons, Transactions related to Things, Transactions related to incomes & expenditures. In accountancy we have three types of accounts they are – personal, real, nominal Personal accounts refers to all the transactions related to natural persons, artificial persons and representative persons ex:- rama, ravi, Indian bank, outstanding rent. ,. First category of transactions belongs to personal accounts RULE: debit the receiver and credit the giver Real accounts include things in the business i.e. assets. Second category of transactions related to Real accounts ex: buildings, machinery, cash etc. RULE: Debit what comes in and credit what goes out Nominal accounts includes all the transactions related to expenditures, incomes, losses, and profits. Ex: – rent paid, rent received, bad debts, profit on sale of an asset.
RULE: Debit all expenses and losses and credit all incomes and profits
Accounting Interview Questions 185 :: What is meant by partitioning?
186 :: What are trade bills?
Accounting Interview Questions 187 :: What is double entry book keeping?
In double entry book, keeping method a journal entry is posted to both respective accounts for each transaction.
Let us say for sales transaction, debit entry posted to cash account credit entry posted to sales account.
Therefore, it is one of the methods to post accounting transactions.
Accounting Interview Questions 188 :: What is dividend warrants?
Dividend is the part of profits payable to the owners of the company i.e., Shareholders. Some companies issues warrants to its shareholders instead of paying dividends in the form of cash in the form of document by mentioning the Warrant Price and other details.
The price mentioned in it is also called exercise price. Some times company may not specify the name of the holder. The holder of the document can fill it.
Advantages: It helps to the issuing company from paying the Tax.
It is easy to transfer from one person to other without any formalities
It helps to increase the share/capital of the company
Accounting Interview Questions 189 :: What is Letter of Credit?
Accounting Interview Questions 190 :: What are the four classifications of Bad and Doubtful Debts as per the context of the Bank?
Assets in Banks are Loans and Advances given to borrowers. These Assets are divided into 4 categories. They are
1. Standard Assets: These accounts are good and the borrower is repaying the loan as per stipulation and the security extended in good.
2. Substandard Asset: These accounts are good as per the security extended is good but the loans repayment is not up to the mark.
3. Doubtful Asset: These accounts have both the security as well the repayment stipulation in irregular method.
4. Bad Asset: These accounts are where the repayment is not forthcoming and the security extended becomes bad.
191 :: What is a Comprehensive Income?
Accounting Interview Questions 192 :: What is the difference between Perpetual and Periodic Inventory systems?
In perpetual inventory system, the inventory account is adjusted continually throughout the accounting period.
Whereas in the Periodic Inventory System: – Recording inventory transactions periodically than recording them continually.
Accounting Interview Questions 193 :: What is the difference between provision and reverse?
Provisions are created in books as they are anticipated. Example: provision for depreciation
Reserves are created in books as a part of profits, which might used to purchase assets or to declare dividends.
194 :: What is an adjusting journal entry?
Accounting Interview Questions 195 :: What is Contingent Liabilities?
Accounting Interview Questions 196 :: What is service tax?
When any employer provides any service to his customer, which income is excess under the tax then company liable for the pay tax.
Service tax charged at rate 12 %( India) + 3% E.Cess & H. & E.Cess
=12.36%
In addition, service tax deposited of in under 5 days who you charged service tax to his customers.
In the payment of Service tax amount you can Credit availed during of the month.
Moreover, if any company purchased of any item that has Excise duty & E.Cess with E.Cess then you can credit availed when you received excise form to your seller.
Accounting Interview Questions 197 :: Can I take service tax on freight outward?
Accounting Interview Questions 198 :: What are the golden rules of accounting?
Personal-
Debit the receiver
Credit the Giver
Real-
Debit what comes in
Credit what goes out
Nominal-
Debit all expenses and losses
Credit all income and gains
Accounting Interview Questions 199 :: What is the TDS effect in balance sheet if TDS receipts?
Accounting Interview Questions 200 :: Where should TDS received should show in balance sheet?
Accounting Interview Questions 201 :: What is normal accounting?
202 :: What are the types off ratios?
Accounting Interview Questions 203 :: In the first wave, the age of discovery (1450-1850), globalization:
Accounting Interview Questions 204 :: How does define the accrual booking?
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