Accounting and Taxation

Top 50 Accounting Interview Questions and Answers

Preface

In general,  the person with a degree in accounting and its related field or The person with a math or economics graduate then has a look at these top 50 Accounting interview questions and answers. General Accounting is the unique category in which accounting is divided. Moreover, The various types of accounting have the standards of accounts that are associated with the presentation and documentation of all financial statements.Then, what’s more, take a dive to track yourself as an accountant, analyst, accounting executive, accounting assistant, a financial analyst by taking a glance into the Top 50 accounting questions and answersHowever, if the aspirant is an accountant and finance, handling, look for a job. Despite this, you should take a look at Accounting interview questions and answers to prepare for the next job interview.

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What is more,let’s start learning the 50 Accounting interview questions and answers

Q.1. What is Accounting?

Generally, The method is used to keep track is called Accounting. Accounting determines the financial status of a person. And includes the company’s income, an outlay of money, possessions, and assets.

Q. 2. Who is the User of Accounting?

Definitely, Taxpayers use accounting.

Q.3. However ,State the three streams of Accounting?

Financial Accounting,  Management Accounting.Cost Accounting

Q.4.Explain financial accounting?

That is to say, Financial Accounting is the process, which has a systematic transactions record.  In order to prepare financial statements, various account books are maintained in the organizations. The first type of financial accounting is the profitability statement or profit and loss. The second one is a balance sheet

Q.5 Cost accounting -Define?

In a systematic way, The record and classifying expenditure obtained in the course of operations of the organization.

Q.6.  If the income statement touches $ 10 then what happens to the inventory?

In any case,  the only impact would fall on the balancer sheet and cash flow statement.

Q.7. How is working capital defined?

Despite working capital being explained as present assets with fewer liabilities. Above all in banking, working capital is explained as current assets.

Q.8. List the limitations of Management Accounting?

However The limitations of,Management Accounting is on cost accounting and financial.consequently, the historical data helps to make future decisions. It is useful in decision making process.Despite,it is a supplementary service in which tools and techniques provides information. Indeed the personal prejudices ,bias affect the decisions because of the interpretation of financial information

Q.9. Likewise, Have you used Accounting Applications?

Definitely, Advanced Business solutions and AME Accounting software. are the trending Accounting Applications. which I have used.

Q.10. Name some Accounting Applications?

1.CGram software

2. Financial force

3.MicrosoftAccountingprofessional

4. Microsoft Dynamics AX

5. Microsoft small Business Financials

Q.11. On the other hand, Which accounting application is best and why?

Nevertheless, the Microsoft Accounting application is best because it saves time and it increases proficiency. It offers fast processing of accounting transactions

Q. 12. This may be true, Explain to maintain accounting accuracy?

Without a doubt, The important activity of an organization is maintaining the accuracy of the organization’s accounting. There are many tools and resources to limit the potential for errors to creep in . And then if any errors arise address them immediately.

Q.13.Mention some of the common ways of maintaining accuracy in accounting?

Generally,To prepare tax returns to avoid penalty Get revenue streams Observe invoices and receipts To prepare financial statements Try to keep tabs on deductible expenses

Q .14. Since many of our favorites is MS Excel, kindly explain three cases where Excel finds the way easier.

The major advantage of Excel -it saves time. To illustrate this, automating repetitive and predictable tasks with macros is an excellent example. It is able to analyze a vast set of data, format, filter within seconds. Accountants create reports with tables and charts in excel. In any case, we can say, Excel is highly customizable. Excel tracks financial records and traces the sources of cash flow.No doubt, it is convenient in comparing financial datasets.

Q.15. Define TDS? How it is used in the balance sheet?

Nevertheless, TDS is a concept. Its purpose is to collect tax at every source of income. However, In the assert section, TDS is shownright after the head current assert.

Q.16. A trial balance and a balance sheet-Differentiate?

A trial balance-the list of balances in a ledger account. Through recording and posting it checks the arithmetical accuracy .on the contrary a balance sheet is a statement where we can find the assets, equity, and liabilities of a company. It is used to determine its financial position on a particular date.

Q. 17. In contrast, whether the company has the possibility to show positive cash flow and on the contrary lack the revenue going forward in the pipeline?

Of course, the company may show an unsustainable improvement in working capital and still be in grave trouble.

Q.18.Discuss the common mistakes in accounting?

Of course, . In accounting interview questions this common mistakes in accounting are discussed.. Despite less communication between the company and the accountant. Misallocated resources without backup. By all means, performing manual accounting and at the same time without saving the receipts. Notably, without keeping the accounting books updated.

Q.19.Discuss inactive and dormant accounts?

The accounts closed and will not have used in the future are inactive accounts. However, The dormant accounts which may be used in the future that are not currently functional.

Q.20. uniquely, this is another important question that is frequently asked in accounting interview questions, State the accounting standards?

Equally important, It is essential to have knowledge of International accounting standards. It may be true, that it is an extensive subject and it is impossible to know it by heart. International Accounting Standards Board issues 41 Accounting Standards.

Q.21. Accounting Standards are mandatory -Discuss

In addition, Accounting Standards play a vital part in developing a good and proper financial report. This ensures reliability in financial reports. The organization’s financial documents are prepared as per Accounting Standards. The uniformity permits one to compare its market position against others. And also they follow the same mandatory principles. A common methodology exists, where there is no room for misrepresentation.

Q.22. Define Tally Accounting?

Tally Accounting is the software used for managing routine accounting transactions in small businesses.

Q.23. Discuss the ways to estimate bad debts?

Certainly,the popular ways of estimating bad debts are – aging analysis,the percentage of outstanding accounts, and percentage of credit sales.

Q. 24. Define departmental accounting?

Departmental accounting is a type of accounting. It separates account which is created for departments.Furthermore it managed separately and shown independently in the balance sheet.

Q.25.Examine fictitious assets?

Fictitious assets are the assets of goodwill,rights which can be felt and it cannot be shown.

Q.26. What do you mean by perpetual and periodic inventory system ?

First,The accounts are adjusted on continual basis in the perpetual inventory system .second,The accounts are adjusted periodically in the periodic inventory system.

Q.27. Define premises in Accounting?

In accounting, premises refers to fixed assets. It is shown in the balance sheet.

Q.28. What is the abbreviation of VAT in accounting?

Value Added Tax

Q. 29. Above all ,state the abbreviation of ICAI?

ICAI means Institute of chartered Accountant in India.

Q.30 Despite, state the difference between Accounting and auditing?

Above all, Accounting is all about recording daily business activities whereas auditing is checking about the events that have been noted down correctly or not.

Q.31.Explain dual aspect term?

I hope that the dual aspect states that all the transaction has two sides.The getting and losing is the two aspect of all transaction.For instance,when we buy things,we pay the amount and get the things.likewise,when we sale ,we lose the thing and gets money.

Q.32. Explain the term purchase return,in accounting?

The term purchase return is introduced in the records for all defective and satisfactory good returned back to its supplier.

Q.33. In accounting, define the term material facts?

The term material facts express the bills and the document which becomes the base of the account book. The account book is prepared with the help of these documents is called material facts.

Q. 34. Define the MIS reports?

Nevertheless, To identify the efficiency of any company MISreports are prepared.

Q.35.Explain deferred tax and its value?

The tax amount which has been carried yet does not recognize in the income statement is a deferred tax.Its value is prepared by seeing the difference between the book income and the taxable income.

Q.36. Explain a bank reconciliation statement?

Inother wordsBRS compares the individual s personal bank account records to that of the bank. While the passbook balance differs from the cashbook balance.

Q.37.Explain bills receivable?

In addition, Bills receivable are all types of exchange bills, and bond.The other securities owned gy a merchant and all that is payable to him.

Q.38.In accounting, Does mathematics knowledge is required?

That is to say, in accounting, Basic mathematics knowledge is necessary for operations like addition, multiplication, subtraction, and then division.

Q.39. Differenciate  consignor and consignee?

Nevertheless, the consignor is said to be the owner of the goods and he is the person who delivers the goods. similarly, who receives the goods is said to be the consignee. 

Q.40. Does statistics knowledge is required in accounting?

Indeed statistics Knowledge is necessary in accounting.Without it you cannot manage the day to day transactions effectively.

Q.41. Explain Scrap value in accounting?

However, Scrap value in accounting is the residual value of an asset. And this value that any asset holds after its estimated lifetime

Q.42. Explain Marginal Cost?

As i have noted,Marginal cost is to produce an additional unit of outputs

Q.43 . State the major constraints that can hamper relevant and then reliable financial statements?

In short,No clarity in true view presentation No balance betweenbenefits and costs Irrelevant information leads to delay

Q.44. What is the Offset accounting?

In general Offset accounting decreases the net amount of another account to produce a net balance.

Q.45. Explain trade bills?

Emphatically,All trade bills has documents,generated against each transaction.indeed,in all types of transactions documentation is necessary.

Q.46. Explain the bills receivable?

By all means, Bills receivable are called payments.The company or merchant will receive from this from the customers.

Q.47. What is fair value accounting?

As i have noted,in accounting,The merchant or the company has to exhibit the value of its assests. No plagiarism found

Q.48. Define Balancing.

 Generally. Balancing is  equating or balancing.By means   the debit and credit sides of a T-account.

Q.49. State the Fixed assets in the balance sheet with example?

Accordingly, The fixed assests which are recorded in balance sheet will not consumed in one fiscal year.It will ensure the recruiter.It is the long term assests.Automobiles, furniture, office are the typical examples of fixed assests.

Q.50. Name some intangible assets.

Intangible assets include –

  • Patents
  • Copyrights
  • Trademarks
  • Brand names
  • Domain names

Final words

Without a doubt, As i told, these Accounting interview questions and answers will boost your confidence .Therefore, you can have a glance at Accounting interview questions and answers to shine as an accountant or financial professional.

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