Accounting Interview Questions with Answers
Categories: Accountancy
What are some of the ways to estimate bad debts?
Some of the popular ways of estimating bad debts are – the percentage of outstanding accounts, aging analysis, and percentage of credit sales.
What is deferred tax liability?
Deferred tax liability signifies that a company may pay more tax in the future due to current transactions.
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.
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
Name some popular accounting applications.
I am familiar with accounting apps like CGram Software, Financial Force, Microsoft Accounting Professional, Microsoft Dynamics AX, and Microsoft Small Business Financials.
Which accounting application do you like the most and why?
I find Microsoft Accounting Professional the best as it offers reliable and fast processing of accounting transactions, thereby saving time and increasing proficiency.
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.
What is tally accounting?
It is accounting software used by small businesses and shops to manage routine accounting transactions. It is a popular accounting software created by Tally Solutions. It is used for all kinds of accounting-related activities including recording of financial transactions, generating statements of liabilities and assets, and other analytical purposes.