Accountancy Interview Question Set 4

Categories: Accountancy

What does the budget of the corporate include?

Financial statement of the corporate includes various information like:

a) Balance Sheet (Assets, liabilities, and equity)

b) Income statement (Profit or Loss statement)

c) Equity statement

d) Cash flow statement

What’s working capital?

Working capital may be a financial metric that calculates the resources available to the corporate to finance its day-to-day operations. It’s typically calculated by deducting current liabilities from current assets.

What’s a ledger?

A ledger is often mentioned as an accounting book that keeps the record of journal entries in chronological order to individual accounts. The method of recording this journal entries is understood as posting.

Mention the kinds of ledgers?

There are three sorts of the ledger

1. General ledger

2. Debtor’s ledger

3. Creditor’s ledger

 What’s GAAP?

GAAP means Generally Accepted Accounting Principle; it’s a framework of accounting, standards, procedures & rules determined by the professional accounting industry and practiced by publicly traded U.S companies everywhere in the U.S.A.

Explain double-entry accounting with an example

Double-entry accounting is an accounting that needs recording business transactions or events in a minimum of two accounts. it’s an equivalent concept of accounting, where every debit account should be matched with a charge account.

For example, if a corporation takes a loan from a bank, it receives cash as an asset, but at an equivalent time, it creates a liability for a corporation.

What are the foremost common errors in accounting?

The most common errors in accounting are:

1. Compensating Error
2. Commission Errors
3. Omission Errors
4. Errors of principle