Accounting Interview Question Set 4
Categories: Accountancy
In what way do you maintain accounting accuracy?
As an organization, it is very important to maintain the accuracy of accounting or which will end in huge loss, there are various tools and resource which may be wont to limit the potential for errors to sneak in and address quickly if any errors do arise.
Explain TDS? Where is TDS shown in the balance sheet?
TDS (Tax Deducted at Source) is a concept aimed at collecting tax in every source of income. In a balance sheet, it is shown on the assets section right after the head current assets.
Difference between Account payable and Account receivable? This is a very commonly used question accountant Interview question?
Accounts payable is defined as the company owes it purchased goods or services on credit from a vendor or supplier.
Eg: Account payable are Liabilities
Accounts Receivable is defined to collect company right that is sold goods and services on credit to a customer
Eg: Accounts receivable are assets.
Difference between trial balance and a balance sheet?
Trail balance is a sheet with all the list of balances in a ledger account and is used to check the mathematical accuracy in recording and posting. A balance sheet is a statement that shows all the assets and liabilities and equity of a company and is used to ascertain its financial position on a particular date.
What is the Possible Way for a Company to Show Positive Cash Flows and Still, be in trouble?
It is an unsustainable improvement in working capital and includes a lack of income going forward in the pipeline.
Name the major errors in accounting?
The very common error in accounting are-error of omission, errors of commission, errors of opinion, and compensating error.
Difference between inactive and dormant accounts?
Inactive accounts are the account that is closed and will not be used in the future. Dormant accounts verbally are not currently functioning but they may be used in the future.
What are the accounting standards? How many are there in India?
As per the Accounting Standards Board (ASB) they are 41 accounting standards-check for standard again. [ This is again a regularly probed query in the accountant Interview question ]
Is accounting standards mandatory?
Yes, it is its plays a very important role in the business field for preparing a good and accurate financial report. It also ensures the consistency and application in a financial report.
How have you helped the company save its money or use the financial resource effectively?
You can through your ideas that helped the company’s finance positively. Also, tell them how your idea has optimized the process of how you came to such a decision through historical data review.
Does your company have three bank account for processing payment? What is the minimum ledger accounts required?
For the accounting and reconciliation process we need three ledger accounts only.