Accounting Interview Questions with Answers
Categories: Accountancy
What happens to the cash, which is collected from the customers but not recorded as revenue?
It goes into “Deferred Revenue” on the balance sheet as a liability if no revenue has been earned yet.
How important is documentation when it comes to accounting?
I believe that the accounting team of any company has a responsibility to present a true and fair view to the shareholders and management of the company. The accounting team is like the watchdog of the organization.
What is an MIS report, have you prepared any?
Yes, I have prepared MIS reports. It is an acronym for Management Information System, and this report is generated to identify the efficiency of any department of a company.
What do you mean by the company’s payable cycle?
It is the time required by the company to pay all its account payables.
What is Scrap Value in accounting?
Scrap Value is the residual value of an asset that any asset holds after its estimated lifetime.
Which account is responsible for interest payable?
The current liability account is responsible for interest payable.
What is the departmental accounting system?
It is a type of accounting information system that records all the financial information and activities of the department. This financial information can be used to check the profitability and efficiency of every department.
What is a perpetual inventory system?
Perpetual inventory is a methodology that involves recording the sale or purchase of inventory immediately using enterprise asset management software and computerized point-of-sale systems.