Accountancy Interview Question
Categories: Accountancy
What are Accruals?
Accrued Expense is an expense that has been incurred, but has not been recorded within the books of accounts presently. It will require an adjustment entry within the books of accounts to reflect this within the financial statements.
Accrued Income is an income that has been earned, but has not been recorded within the books of accounts presently. Similar to accrued expenses, an adjustment entry is going to be required during this case too.
What is a contra account?
It is an account that is employed to scale back or offset the worth of an associated account. It holds the opposite sign for a particular type of account. If an account has a debit balance (e.g for an Asset a/c), then there’ll be a credit balance in its contra account. The opposite is true for a liability account.
What are Drawings, what sort of account is it & its journal entry?
When a proprietor withdraws cash or goods from its own business for private use it’s termed as drawings. It reduces capital invested and maybe a temporary account which is cleared at the top of every accounting period.
Journal entry for goods withdrawn
Drawing AccountDebit
To Cash AccountCredit
Journal entry for goods withdrawn
Drawing AccountDebit
To Cash AccountCredit
What’s a Bank Reconciliation Statement & why is it prepared?
Almost all compilations of finance and accounting interview questions include a minimum of one question on BRS, this subject is deemed important. Bank Reconciliation Statement or BRS refers to a press release that is formed to reconcile bank balance shown on the statement or passbook with the bank balance shown within the cash book.
What is Deferred Revenue Expenditure?
Another one of the lists of commonly asked finance and accounting interview questions is Deferred Revenue Expenditure. It is an investment that is interested and acquired as an accounting term, but its benefits are to be derived from the spread of the following accounting periods.
A part of the quantity which is charged to the profit and loss account within the current accounting period is reduced from the entire expenditure and therefore the rest is shown on the balance sheet as an asset.
What’s a Credit Note and Debit Note?
Be ready for this question in accounting interviews for roles associated with Accounts Payable and assets.
Debit Note – When a buyer returns goods to the vendor, he sends a debit note as an intimation to the vendor of the quantity and quantity being returned and requesting the return of money.
Credit Note – When a seller receives goods (returned) from the customer, he prepares and sends a credit note as an intimation to the customer showing that the cash for the related goods is being returned within the sort of a credit note. Intimation to the customer showing that the cash for the related goods is being returned within the sort of a credit note.
Explain Which Accounting Applications Are Your Familiar With?
Discuss the applications you’ve got worked with. Specialize in how you implemented the appliance, the steps taken during the conversion and integration of the accounting, and thus the training of staff to use the appliance.
What’s An Accounting Transaction?
An accounting transaction is the exchange of request/response messages to perform accounting. Accounting is often performed within the type of accounting transactions that report on resource usage by a session. Accounting transactions can occur during a session if accounting or charging indications are needed [p&l based acct] or only at the beginning and thus the highest of the session.
What are the various Fields of Accounting?
There’s one field of accounting, but there are many different jobs within the world like an auditor, bookkeeper, payroll accountant, accountant, tax accountants, etc. Accountants wear many hats and sometimes do different tasks for various clients