Accounting Interview Questions with Answers

 

AccountingInterview Questions with Answers

An accountant is a professional who performs accounting functions such as account analysis, auditing, or financial statement analysis & returns filing.

What isAccounting?

“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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