AccountingInterview Questions with Answers
An
accountant is a professional who performs accounting functions such as account
analysis, auditing, or financial statement analysis & returns filing.
“Accounting is an art of recording, classifying and
summarizing in a significant manner and in terms of money event and transaction
which are at least of financial character and interpreting the result thereof “
As per
American institute of certified accountant
What arethe different types of accounting?
Ans. Different types of accounting
are
Financial Accounting – This branch of accounting records, summarizes and
reports the business transactions that take place over a time period in an organization.
It is required in both the private and public sectors.
Administrative Accounting – Administrative accounting is focused on the
administrative aspects of the company and is used above all to assess the
fulfillment of the established objectives and improve the implemented strategy.
It is very useful for making forecasts and planning the actions and resources
to be used.
Accounting helps to register and prepare reports related to
tax returns to the public treasury and payment of taxes.
Cost Accounting – This type of accounting is more focused on companies of an
industrial nature. It helps to make a detailed analysis of the unit costs of
production, sales, and, in general, of the production process that the company
carries out.
Management Accounting – Management accounting has a broader vision than cost
accounting since it records all the economic and financial information of the
company to be able to make short-term and long-term decisions.
What is TDS? Where do you show TDS on a balance sheet?
Ans. 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.
What is cash flow statement and why it is prepared
A cash flow statement is a financial statement that
summarizes the amount of cash and cash equivalents entering and leaving a
company. The cash flow statement measures how well a company manages its cash
position, meaning how well the company generates cash to pay its debt
obligations and fund its operating expenses.
What are Current
Assets?
Current assets are those assets that are either in form of
cash or can be converted into cash within one year of the date of finalization
of accounts.
There are five main
kinds of current assets:
Cash and equivalents.
Short- and long-term investments.
Accounts receivable.(Debtors)
(Stock)
Prepaid expenses
What is a bank reconciliation statement?
Ans. 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.
What are Intangible Assets in Accounting?
An intangible asset is an asset that is not physical in
nature. Examples of intangible assets include goodwill, brand recognition,
copyrights, patents, trademarks
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