Notesale: Turn your study into money

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Accounting Interview Questions Answers CPA Review Courses
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2) Do you have any professional experience of this field?
Yes, I have worked as an accountant at two different places
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4) Can you name any other accounting application?
Yes, I am familiar with CGram Software, Financial Force, Microsoft Accounting Professional,
Microsoft Dynamics AX and Microsoft Small Business Financials
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6) What is the abbreviation for the accounting terms debit and credit?
Debit abbreviation is “dr” and credit abbreviation is “cr”
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7) How many types of business transactions are there in accounting?
There are two types of transactions in accounting i
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revenue and capital
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9)

Have you ever heard about TDS, what it is?

Yes, TDS abbreviates Tax Deduction at Source
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11)

Do you have any idea about Service Tax or Excise?

It is a kind of hidden tax that is included in the service provided by the service provider and paid by
the service receiver
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Inactive accounts means that accounts have been
closed and will not be used in future as well
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13)

What is tally accounting?

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14)

How can you define departmental accounting?

It is a type of accounting in which separate account is created for departments
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15) Define fictitious assets?
These are the assets that cannot be shown or touch
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16) By saying, perpetual or periodic inventory system; what do we mean?
In the first one i
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the perpetual inventory system, the accounts are adjusted on continual basis
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17) In accounting, how do you define premises?
Premises refer to fixed assets that are shown in the balance sheet
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19) Do you possess any knowledge about accounting standards?
Yes, as per my knowledge there are total 33 accounting standards published so far by ICAI
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21) How can you explain the basic accounting equation?
We know that accounting is all about assets, liabilities and capital
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22) Define Executive accounting?
It is a type of accounting that is specifically designed for the business that offers services to users
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It is for general public
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To become a CPA, one should have to do many other
qualifications as well
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25) What do you think is bank reconciliation statement?
A reconciliation statement is prepared when the passbook balance differs from the cashbook

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26) Differentiate Public and Private Accounting?
Public accounting is a type of accounting that is done by one company for another company
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27) What is project implementation?
Project implementation involves six steps in total such as:
Identify Need
Generate and Screen Ideas
Conduct Feasible Study
Develop the Project
Implement the Project
Control the Project

28) Do you think Accounting Standards are mandatory and why?
Yes, I do believe that accounting standards play a very important role to prepare good quality and
accurate financial reports
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29) Can you name different branches of accounting?
There are three branches of accounting named as “Financial Accounting”, “Management
Accounting” and “Cost Accounting”
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For
example, when you buy something, you give the cash and get the thing
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So this getting and losing is basically two
aspects of every transaction
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33) Define the term material facts in accounting?
Material facts are the bills or any document that becomes the base of every account book
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34) Have you ever prepared MIS reports and what are these?
Yes, I have prepared few MIS reports during my previous jobs
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35) Define company’s payable cycle?
It is the time required by the company to pay all its account payables
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These clients are the normal people and not any
organizational customers
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37) How much mathematics knowledge is necessary or required in accounting?
Not much knowledge but basic mathematical background is required in accounting for operations
like addition, subtraction, multiplication and division
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39) Define depreciation and its types?
By depreciation we mean that a value of an asset is decreasing as it is in use
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40) Differentiate between consignor and consignee?
Consigner is the owner of the goods or you can say he is the person who delivers the goods to the
consignee
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41) Define balancing in accounting?
Balancing means to equate both sides of the T-account i
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the debit and credit sides of a Taccount must be equal/balanced
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Otherwise, with minimum
knowledge you cannot manage your day to day transactions effectively in accounting
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43) Define Scrap value in accounting?
It is the residual value of an asset
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44) Define Marginal Cost?
Suppose you have to produce an additional unit of output
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45) Define Partitioning in accounting?
It is a kind of groups made on the basis of same responses by a system
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You can say provisions
are expenses
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47) Define Offset accounting?
Offset accounting is one that decreases the net amount of another account to create a net balance
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The trade bills are the documents,
generated against each transaction
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51) Explain what is compound journal entry?
A compound journal entry is just like other accounting entry where there is more than one debit,
more than one credit, or more than one of both debits and credits
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52) What are the accounting events that are frequently involved in compound entries?
The accounting events that are frequently involved in compound entries are;
Record multiple line items in a supplier invoice that address to different expenses
Record all bank deductions associated to a bank reconciliation
Record all deduction and payments related to a payroll
Record the account receivable and sales taxes related to a customer invoice

53) Mention the types of accounts involved in double entry book-keeping?
Double entry book-keeping involves five types of accounts,
Income accounts
Expense accounts
Asset accounts
Liability accounts

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Such that all the debits and credits

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58) What is the general classification of accounts that usually ledger account involve?
The general classification of accounts that usually ledger account involves are
Assets- Cash, Accounts Receivable
Liabilities- Accounts Payable, Loans Payable
Stockholders’ equity- Common Stock
Operating revenues- Revenues through Sales
Operating expenses- Rent Expense, Salaries Expense
Non-operating revenues and gains- Investment Income, gain on Disposal of Equipment
Non-operating revenues and losses- Interest Expense, Loss on Disposal of Equipment

59) Mention what are things will not be included in bank reconciliation statement?
In a bank reconciliation statement, following thing can be excluded
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61) Under what type of account does the unearned revenues fall?
The unearned revenues falls under “Liability” account
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62) Mention whether the account “Cash” will be credited or debited, when a company pays
a bill?
The account “Cash” will be credited when a company pays a bill
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64) Entries to revenues accounts such as Service Revenues are usually?
Entries to revenues accounts such as Service Revenues usually goes into credit side
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Basically, it is the amount that corresponds only to the period of time indicated in
the heading of the income statement
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Installment Loans Payable
Current Portion of Long-term Debt
Mortgage Loans Payable

67) Explain how you can adjust entries into account?
To adjust entries into account, you can sort entries into five categories
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An example of a deferred charge
is bond issue costs
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This fees are paid in a near time when the bonds are issued but
it will not be expensed at that time
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) are correct and that the bank’s
records are also correct
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This
estimate may apply to an accrual of expense or revenue
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73) Explain what are the activities that includes in Cash Flow Statement?
The cash flow statement showcase the cash generated and used during the year or months
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75) Mention which account is responsible for interest payable?
Account which is responsible or affected by the interest payable is “Current liability account”

76) Mention what is reversing journal entries?

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77) Mention where do generally accruals appear on the balance sheet?
Accrued expenses usually tend to be extremely short-term
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78) List out some of the accrued expenses and the accounts in which you would record
them?
Wage accrual is entered with a credit to the “wages payable account”
Interest accrual is entered with a credit to the “interest payable account”
Payroll tax accrual is entered with a credit to the “payroll taxes payable account”

79) Deferred taxation is a part of which equity?
Deferred taxation is a part of owner’s equity
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81) 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

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83) Mention what is trial balance in accounting?
In accounting, trial balance is an accounting report that lists the balances in each of an
organization’s general ledger accounts
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84) Where a cash discount should be recorded in journal entry?
A cash discount should be recorded in journal entry as a reduction of expense in “cash account”
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A master account receivable could be anything, it
could be account receivable for various individual receivable accounts
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89) What knowledge should financial accountant have?
A certified financial accountant should have knowledge about
Accounting 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

90) What are the three factors that can affect your cash flow and business profitability?
The three factors that can affect your cash flow and business profit includes
Cash flows from investing activities: It includes shares, bonds, physical property,
machineries, etc
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in other words, it is a report that tells the
firm about the money borrowed and paid out in order to finance its activities
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91) Explain 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 cash transaction happened
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92) Explain the term account payable?
Account payable is referred as the amount company owes to its suppliers, its employees, and its
partners
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Account payable for one company may be account receivable for another firm or
company
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These are the loans from banks or financial institution that are secured against
various assets on the balance sheet, such as inventories
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Depreciation
Depreciate means to lose value of
an asset due to their usage, wear
and tear, outdated, etc
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The purpose of calculating
depreciation costs recovery

Amortization
Amortize means to write off or pay
the debt over a period of time
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The purpose of calculating

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For example, a car worth $30,000
has estimated the lifetime of 10
years after that it will have no value
in the market
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amortization is also for cost
recovery
Amortization calculates the amount
spent after the intangible assets
throughout the life for that asset
For example, Pharmaceutical
Company spent $20 million dollars
on a drug patent with a useful life of
20 years
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95) Mention what does financial statement of the company includes?
Financial statement of the company includes various information like
Balance Sheet ( Assets, liabilities, and equity)
Income statement ( Profit or Loss statement)
Equity statement
Cash flow statement

96) Explain 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
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97) Explain what is ledger?
A ledger can be referred as an accounting book that keeps the record of journal entries in a
chronological order to individual accounts
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S companies all over the U
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A
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It is the same concept of accounting, where every debit account
should be matched with a credit account
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This single entry will affect both accounts, the asset
accounts, and the liabilities accounts, such entry is referred as double entry accounting
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102) Explain what is liabilities and what all does include in current liabilities?
Liability can be defined as an obligation towards another company or party
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delivering goods, rendering services or paying money
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