Accounting Interview Questions with Answers
Categories: Accountancy
What are fictitious assets?
Fictitious assets are intangible assets and their benefit is derived over a longer period, for example, goodwill, rights, deferred revenue expenditure, miscellaneous expenses, preliminary expenses, and accumulated loss, among others.
Can you explain the basic accounting equation?
Yes, since we know that accounting is all about assets, liabilities, and capital. Hence, its equation can be summarized as:
Assets = Liabilities + Owners Equity.
What is CMM?
Capability Maturity Model (CMM) is a document that provides a model and six elements of infrastructure used for measuring the effectiveness and capability of an organization’s finance process.
What is the meaning of purchase return in accounting?
As the name suggests, a purchase return is a transaction where the buyer of merchandise, inventory or fixed assets returns these defective or unsatisfactory products back to the seller.
What is retail banking?
Retail banking or consumer banking involves a retail client, where individual customers use local branches of larger commercial banks.
What is offset accounting?
Offset accounting is the process of cancelling an accounting entry with an equal but opposite entry. It decreases the net amount of another account to create a net balance.
What are the trade bills?
These are the bills generated against each transaction. It is a part of the documentation procedure for all types of transactions.
What is fair value accounting?
As per fair value accounting, a company has to show the value of all of its assets in terms of price on the balance sheet on which that asset can be sold. Do elaborate on the answer to this accounting interview question.