Tuesday, June 9, 2020

Interview | Top Accounting Questions and Answers in New Era

 Keep your body calm and do not hesitate in answering the HR Questions. Polish your skills on a daily basis

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(1) How many types of business transactions are there in accounting?


There are two types of business transactions in accounting-

Revenue

Capital.

(2) What is working capital?
Working capital is calculated as current assets minus current liabilities, which is used in day-to-day trading.

(3) How do you maintain accounting accuracy?
A) Maintaining the accuracy of an organization’s accounting is an important activity as it can result in a huge loss. There are various tools and resources which can be used to limit the potential for errors to creep in and address quickly if any errors do arise.


(4) What is TDS? Where do you show TDS on a balance sheet?

TDS (Tax Deducted at Source) is a concept aimed at collecting tax at every source of income. In a balance sheet, it is shown in the assets section, right after the head current asset.

(5) What is the difference between 'accounts payable (AP)' and 'accounts receivable (AR)?

 

Accounts Receivable: The amount a company has the right to collect because it sold I goods or services on credit to a customer.
Accounts receivable are assets.


(6) Are you familiar with the Accounting Standards? How many accounting standards are there?
There are currently 4 Accounting Standards which are usually issued by the Accounting Standards Board (ASB).

(7) Is it possible for a company to show positive cash flows and still be in grave trouble?
 Yes, if it shows an unsustainable improvement in working capital and involves lack of revenue going forward in the pipeline

(8) Have you ever helped your company to save money or use their available financial resources effectively?
Explain if you have proposed an idea which has affected the company's finances positively. Tell how you have optimized the process and how you came to such a decision through historical data reviewing


(9) If our organization has three bank accounts for processing payments, what is the minimum number of ledgers it needs?

 Three ledgers for each account for proper accounting and reconciliation processes.


(10) What are some of the ways to estimate bad debts?

 Some of the popular ways of estimating bad debts are- a percentage of outstanding accounts, aging analysis, and percentage of credit sales. i


(11) What is deferred tax liability?
 Deferred tax liability signifies that a company may pay more tax in their future due to current transactions.

(12) What is the equation for Acid-Test Ratio in accounting?

 

The equation for Acid-Test Ratio in accounting=Acid-Test Ratio *(Current assets- Inventory) / Current Liabilities

(13) What is a deferred tax asset and how is the value created?

A deferred tax asset is when the tax amount has been paid or has been carried forward but has still not been recognized in the income statement. The value is created by taking the difference between the book income and the taxable income.

(14) What are the popular accounting applications?

I am familiar with accounting apps like C Gram Software, Financial Force, Microsoft Accounting professional, Microsoft Dynamics AX, and Microsoft Small Business Financials.


(15) Which accounting application you like the most and why?

 Find Microsoft Accounting Professional the best as it offers reliable and fast processing of accounting transactions, thereby saving time and increasing proficiency.


(16) Tell me something about GST.
 GST is the acronym for Goods and Service Tax and it is an indirect tax other than the income tax. The seller charges it to the customer on the value of the service or product sold. The seller then deposits the GST to the government. i


(17) What is a bank reconciliation statement?
A bank reconciliation statement or BRS is a form that allows individuals to compare their personal bank account records to that of the bank. BRS is prepared when the passbook balance differs from the cashbook balance.


(18) What is tally accounting?
It is accounting software used by small business and shops to manage routine accounting transactions.


(19) What are fictitious assets?
Fictitious assets are intangible assets and their benefit is derived over a longer I period, for example, goodwill, rights, deferred revenue expenditure, miscellaneous expenses, preliminary expenses, and accumulated loss, among others.


(20) What is retail banking?
 Retail banking or consumer banking involves a retail client, where individual customers use local branches of larger commercial banks. i


(21) What has offset accounting?
 Offset accounting is a process of canceling an accounting entry with an equal but opposite entry. It decreases the net amount of another account to create a net balance.


(22) What are the trade bills?
These are the bills generated against each transaction. It is a part of the documentation procedure for all types of transactions. i


(23) What is fair value accounting?
As per fair value accounting, a company has to show the value of all of its assets in terms of price on the balance sheet on which that asset can be sold. I


(24) What happens to the cash, which is collected from the customers but not recorded as revenue?
 It goes into "Deferred Revenue" on the balance sheet as a liability if no revenue has been earned yet.


(25) What is an MIS report, have you prepared any?

 Yes, I have prepared MIS reports. It is an acronym for Management Information System, and this report is generated to identify the efficiency of any department of a company.


(26) What is the company's payable cycle?

 It is the time required by the company to pay all its account payables. i

(27) What is the meaning of purchase return in accounting?

      As the name suggests, purchase return is a transaction where the buyer of merchandise, inventory or fixed assets return these defective or unsatisfactory products back to the seller.


      (28) What are the different branches of accounting?

 There are three branches of accounting-
Financial Accounting

Management Accounting

Cost Accounting


     (29) What is Scrap Value in accounting?
A) Scrap Value is the residual value of an asset that any asset holds after its estimated lifetime.

     (30) What is the company's payable cycle?

It is the time required by the company to pay all its account payables. i


      (31) Which account is responsible for interest payable?

 Current liability account is responsible for interest payable.

Final Conclusion on Accounting Interview:

The bottom line is this:

be prepared,

do your research,

and understand

the job you are being interviewed for and how your skills, personality and experience match the job's requirements. Keep your body calm and do not hesitate in answering the HR Questions. Polish your skills on daily basis. Practice, again and again, these questions in front of the mirror .Personally , I Suggest giving a demo to anyone your relative or friend Close the interview with questions, pass on your calling card if you have one, thank them for their time and give a firm handshake before smiling and saying goodbye.

If You Like then Subscribe, if You have Suggestion then Describe, If you want to hire for your project then Contact.

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