Why did you opt for an accounting job?
Well, I was quite good at accounting during my college hence; I decided to apply for a job.
Do you have any prior experience in this field?
Yes, I have one year / two years of experience at two different places.
Did you use any experience of working with accounting software at your previous companies?
Yes, I have used Tally & BUSY accounting software in my previous jobs.
Do you know any other accounting applications?
Yes, Sir I know MARG and SAP FICO software.
Which accounting software do you prefer?
I like most of the software; however, every software has its pros and cons. With Tally ERP you get simplicity with certain limitations. It offers reliable and fast processing of accounting transactions that saves time and increases proficiency.
What is the short terms debit and credit?
The debit is “dr” and credit is “cr”.
How many types of transactions are recorded in accounting?
There are many types of transactions, like sales, purchases, receipts, payments, journal, and adjustment entries.
What is the balance sheet?
The balance sheet is prepared to show the financial health of an organization; it is a statement showing liabilities and assets on a particular date.
What is TDS?
Yes, TDS means Tax Deduction at Source; it is the income tax deducted by the source while making payment to the vendor.
In the balance sheet, how do you show TDS?
TDS can be a liability if deducted while making payments, and it can be an asset while receiving payments.
Do you know what GST is?
GST stands for Goods and Service Tax. It’s an indirect tax other than income tax. The customer/clients pay the GST, and the seller deposits the GST with the government.
What are dormant accounts?
Dormant accounts are those that are not functional today but may be used in the future.
What is Tally accounting software?
It is the software used for accounting in small businesses and shops for managing routine accounting transactions.
How can you define departmental accounting?
“Departmental accounting” refers to maintaining accounts for one or more branches or departments of the company. Revenues and expenses of the department are recorded and reported separately.
Define fictitious assets.
An asset created by an accounting entry (and included under assets in the balance sheet) that has no tangible existence or realizable value but represents actual cash expenditure
What do we mean by “perpetual inventory system”?
In a perpetual inventory system, the accounts are adjusted on a continuous basis.
In accounting, how do you define the premises?
Premises refer to fixed assets shown in the balance sheet.
What is an accounting standard?
An accounting standard is a common set of principles, standards, and procedures that define the basis of financial accounting policies and practices. GAAP Generally Accepted Accounting Principles, forms the set of accounting standards widely accepted for preparing financial statements.
How can you explain the basic accounting equation?
We know that accounting is all about assets, liabilities, and capital. Therefore, the accounting equation is:
Assets = Liabilities + Owner’s Equity.
Define executive accounting.
Executive accountants typically focus on corporate accounting rather than public accounting, which means they oversee the finances of a business rather than helping individuals.
What is public accounting?
Public accounting is firms of accountants that serve businesses, individuals, nonprofit organizations, and governmental organizations.
What is a bank reconciliation statement?
A bank reconciliation statement is prepared when the passbook balance differs from the bankbook balance.
Do you know the different branches of accounting?
“Financial Accounting,” “Management Accounting,” and “Cost Accounting.”
What is the difference between accounting and auditing?
Accounting is all about recording daily business activities, while auditing is the checking of these events and transactions.
Do you understand what MIS is?
Yes, I know MIS reports are created to identify the efficiency of any department of a company. MIS reports are created by using Microsoft Excel.
Do you know the bills receivable?
All types of exchange bills, bonds, and other securities owned by a merchant that is payable to him are called bills receivable.
Do you know different types of depreciation?
Depreciation has two types as “straight-line method” and the “written-down value method.”
Differentiate between consignor and consignee?
The consignor is the owner of the goods, or you can say he is the person who delivers the goods to the consignee. The consignee is the person who receives the goods.
What is the difference between provision and reserve?
Provisions are anticipated liabilities. Reserves are accumulated profits of any company.
It is the indirect expenditure of a company such as salaries, rent dues, etc.
What is a compound journal entry?
Yes, I know it is a combination of several simple journal entries.
Under what type of account do the unearned revenues fall?
The unearned revenues fall under the “Liability” account.
What is reversing journal entries?
Reversing journal entries are entries made at the beginning of an accounting period to cancel out the adjusting journal entries made at the end of the previous accounting period.
Where should a cash discount be recorded in a journal entry?
A cash discount should be recorded in a journal entry as a reduction of expense in the “cash account.”
What knowledge should a financial accountant have?
- A certified financial accountant should have knowledge about
- Accounting/Bookkeeping principles and practices
- Reporting and analysis of financial data
- Auditing practices and principles
- Account management
- Budgets
- Software knowledge dealing with Accounting
- Knowledge of relevant laws, codes, and regulations
- Good soft skills
- Being a team player
- Ability to learn quickly and upskill
- Basic Technical skills
What is accrual accounting?
Accrual accounting is a method for measuring the performance and position of the company by identifying economic events regardless of when the cash transaction happened. In this method, compare revenue with the expenditures at the time in which the transaction happens rather than when the payment is made.
What is the difference between depreciation and amortization?
- Capital expenses are either depreciated or amortized based on the type of asset.
- Depreciation
- Amortization
- “Depreciating” means losing the value of an asset due to its usage, wear and tear, outdated, etc.
- The depreciation cost is calculated in terms of tangible assets like furniture, plant & machinery, building, etc.
- The purpose of calculating depreciation costs’ recovery
- The easiest way to calculate depreciation is to know the loss of value of an asset over its life.
What is working capital?
Working capital is a financial metric that calculates the resources available to the company to finance its day-to-day operations. It is typically calculated by deducting current liabilities from current assets.
Do you know the types of ledgers?
- There are three types of ledgers.
- General ledger
- Debtors’ ledger
- Creditors’ ledger
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