Most Important Frequently Asked Accounts Interview Questions
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Question 1. What Is Accounting?
Answer :
Accounting is a method or system used to keep track of and determine the financial status of a person or company's income/assets and outlay of money/possessions. (An Accountant engages in Accounting: "The occupation of maintaining and auditing records and preparing financial reports for a business").
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Question 2. Who Uses Accounting?
Answer :
Taxpayers like to use accounting.
Financial Accounting Interview Questions -
Question 3. What Are Accounting Principles?
Answer :
The Accounting Principles are the assertion rules of accounting and the application of these rules, method, & procedures to actual practice of accounting. These Accounting principles have been divided into
A. accounting concepts
B. accounting conventions. -
Question 4. What Are Accounting Entities?
Answer :
Accounting entities are for example a business do not get these mixed up with legal entities.
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Question 5. What Are The 4 Phases Accounting?
Answer :
1. Recording
2. Classifying
3. Summarizing
4. Interpreting. Tally Interview Questions -
Question 6. What Are The Different Fields Of Accounting?
Answer :
There is one field of accounting, but there are many different jobs within the field such as auditor, bookkeeper, payroll accountant, cost accountant, tax accountants, etc. Accountants wear many hats and often do different tasks for different clients.
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Question 7. What Are The Different Branches Of Accounting ?
Answer :
Financial accounting refers to accounting for revenues, expenses, assets, and liabilities. It involves the basic accounting processes of recording, classifying, and summarizing transactions.
- Cost accounting is the branch of accounting dealing with the recording, classification, allocation, and reporting of current and prospective costs.
- Managerial accounting is the branch of accounting designed to provide information to various management levels in the hospitality operation for enhancing controls. Accounts and Finance for Managers Tutorial Accounts and Finance for Managers Interview Questions -
Question 8. What Is Accounting Transaction?
Answer :
A transaction is an execution of a user program and is seen by the DBMS as a series or list of actions. The actions that can be executed by a transaction include the reading and writing of database.
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Question 9. What Are The Functions Of Accounting?
Answer :
Accounting involves the creation of financial records of business transactions, flow of finance, the process of creating wealth in an organization, and summarizing the financial position of a business at a given moment in time.
Taxation Interview Questions -
Question 10. What Is Creative Accounting?
Answer :
"Thinking outside the box" when such practice is not permitted. Creative accounting is actually a good description of the practice, as it tends to create a picture, which is not technically correct from the perspective of the information's intended user.
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Question 11. What Is A Ledger In Regards To Accounting?
Answer :
It is a complete set of accounts for a business entity.
VAT Interview Questions -
Question 12. What Is Accounting Management?
Answer :
Accounting Management (Business) is the practical application of management techniques to control and report on the financial health of the organization. This involves the analysis, planning, implementation, and control of programs designed to provide financial data reporting for managerial decision-making. This includes the maintenance of bank accounts, developing financial statements, cash flow, and financial performance analysis. Accounting management is a mandatory knowledge module of any MBA program.
Accounting (IT) management: Accounting is often referred to as billing management. The goal is to gather usage statistics for users.
Using the statistics the users can be billed and usage quota can be enforced.
Examples:
* Disk usage
* Link utilization
* CPU time. Financial Accounting Interview Questions -
Question 13. What Is Use Of Statistics In Accounting?
Answer :
Well, in many accounting situations, there is too much data to go through all this. For example, if we are looking about Ford motor corp., and looking at some specific data, their may be too much to analyze, so we take a sample. Then we need to know how big a sample to take so we can say with 95% confidence that our results are representative of all the data.
Statistics tells us what sample size we need.
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Question 14. Why Are Accounting Standards Necessary?
Answer :
Accounting standards are necessary to promote high quality financial reporting. The fundamental role of accounting is to communicate economic information about businesses and other organization to various stakeholders including government, investors, shareholders, suppliers, lenders, customers, and the public. These stakeholders use such information to take decisions and to assess the stewardship of people appointed to manage such organizations. If this information were not of a high quality standard, then the stakeholders would be unable to take effective decisions that will benefit them. For example, if a financial report were manipulated to show higher profits, investors would hold on to their shares with the belief that the company is doing well.
Accounting standards came to be developed from the mid sixties onwards to promote the integrity of the accounting profession by way of ensuring uniformity in the way accountants report transactions in their books and in their preparation of the final accounts of businesses. This is largely aimed at boosting the confidence of stakeholders, particularly shareholders and potential investors in the accounting profession.
Good and useful information should have the essential characteristics of understandability, comparability, relevance, and reliability in order to play its role effectively.
Accounting standards serve to promote the understandability, comparability, relevance, and reliability of financial reports.
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Question 15. What Is Accounting Normalization?
Answer :
It is removing items from the income statement or balance sheet that do not normally occur during the course of business to better estimate the value of a company.
Account executive Interview Questions -
Question 16. What Is Normative Accounting?
Answer :
Normative Theory is a theory that prescribes how a process of accounting should be done. This theory is not based on observation and may suggest radical changes to current practices in accounting.
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Question 17. What Is Computerized Accounting?
Answer :
Accounting is the method in which financial information is gathered, processed, and summarized into financial statements and reports.
The purpose of accounting is to provide information used in decision-making. Accounting may be viewed as a system (a process) that converts data into useful information.
Information processes include:
- Recording
- Maintaining
- Reporting
Every business has numerous processes. Some are simple, others complex and cumbersome. However, as the business grows, acquires new customers, enters new markets, and keeps pace with constant changes in statutory regulations... the company will need to maintain highly accurate and up-to-date accounting, inventory, and statutory records.
This is where a computerized accounting helps simplify, integrate, and streamline all the business processes, cost-effectively and easily.
Accounting Reports Interview Questions -
Question 18. What Does The Abbreviation M Mean In Accounting?
Answer :
It has come to mean one million in general usage, although it used to mean one thousand (and one million was abbreviated "MM")
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Question 19. What Does The Abbreviation Dr Mean In Accounting?
Answer :
'Dr' means Debere in Latin stands for 'what comes in' or in simple words whatever assets the business owns or the expenses it has to pay comes under debit.
While 'cr' means credere in Latin means 'what goes out', in simple words whatever liabilities business owns, or the income it earned during the year comes under credit.
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Question 20. What Is Accounting Ethics?
Answer :
Accounting ethics is primarily a field of applied ethics, the study of moral values and judgments as they apply to accountancy. It is an example of professional ethics.
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Question 21. What Is An Accounting Transaction?
Answer :
An accounting transaction is the exchange of request/response messages to perform accounting. Accounting can be performed in the form of accounting transactions that report on resource usage by a session. Accounting transaction can occur during a session if accounting or charging indications are needed [p&l based acct] or only at the start and the end of the session.
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Question 22. What Does Overhead Mean In Regards To Accounting?
Answer :
It is to describe costs of running a business, e.g. rent rates and salaries.
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Question 23. What Are The Uses Of Journal In Accounting?
Answer :
The journal is most commonly used to record corrections to errors that have been made in writing up the general ledger accounts.
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Question 24. What Is Fiduciary Accounting?
Answer :
Proper accounting for property that is entrusted to the fiduciary acting under the conditions set forth in a deed.
Accounts and Finance for Managers Interview Questions -
Question 25. What Is Fair Value Accounting?
Answer :
Fair Value accounting is an accounting term that requires a company to place a value on all of the assets on its balance sheet that, it is the price at which the assets could be sold. This is easy to do when the asset has a quoted market price. However, it is often the case that there is no liquid market for an asset, and thus the company has to make an estimate of fair value. When the marketplace is in turmoil and illiquid, as it has been for much of 2008, companies are sometimes forced to place a very low value on an asset, resulting in a substantial markdown from the prior value. See related links for complete explanations.
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Question 26. Is Financial Accounting Necessary?
Answer :
Yes, the accounting calculates the cost of capital to the business. It compares the current, expected, and historic rates of return. Suppose a company is making 12% returns but borrowing money by using the owner's credit card at 22% be good to know that.
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Question 27. What Are The Different Branches Of Accounting?
Answer :
Following are different branches of accounting:
- Cost Accounting
- Financial Accounting
- Management Accounting
Taxation Interview Questions -
Question 28. What Is Account In Accounting?
Answer :
A account is the method used to visualize the debit credit accounting procedure. The account can represent any account regardless of expense, revenue, asset, or liability. The debits are placed the left side and the credits on the right.
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Question 29. What Is An Ea In Accounting?
Answer :
EA stands for Enrolled Agent. It is a certification by the Internal Revenue Service given to those qualified to practice before them. To become an EA, one must pass a test given by the IRS, the purpose of which is to try to ensure that only qualified people practice before the IRS. You may not be a Power of Attorney for the IRS unless you are an EA or some other certified individual such as a CPA or an attorney.
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Question 30. Why Do Users Of Accounting Information Need Accounting Information?
Answer :
External users of accounting information (especially investors) use accounting information like annual and quarterly reports to base their investing decisions on, and to compare different companies with one another.
Internal users of accounting (mostly managers) use internal accounting information in order to plan. -
Question 31. Is An "account Receivable" And "goodwill" Real Accounts In Accounting?
Answer :
Real accounts, i.e. Balance Sheet accounts are ongoing perpetual records and represent "real" items; cash, receivables, inventories, accounts payable, invested capital, etc., etc. Accounts receivable and goodwill therefore are both real accounts as they have value in and of themselves.
Nominal accounts represent items of income and expense. Nominal accounts have no balances at the beginning of an accounting period and change as various debits and credits are applied because of activity of income and expense throughout the accounting period. At the end of the accounting cycle, the nominal accounts are returned to zero by debiting them by an amount equal to their credit balance if such exists, or crediting an account if it has a debit balance. The offsetting entry of each of these is to a Profit or Loss Account. If after all accounts are zero, the P&L account has a debit balance then operations were profitable (income exceeded expenses), and conversely with a credit balance a loss was incurred. The P&L is then "closed" by either debited or crediting to bring it to zero, whichever is appropriate, with the offsetting entry going to "Retained Earnings", a real account, and bringing the Balance Sheet into balance and leaving all nominal accounts at zero.
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Answer :
This depends on the nature of the account and the thing you wish to achieve. For example, to increase cash you would debit the cash account, but if you wanted to decrease it, you would credit it. There are all sorts of accounts and they have different normal balances.
The thing to remember is that every journal entry must have equal debits and credits. So for example to increase a contra asset account like Allowance for Doubtful debts you would credit Bad Debt Expense to increase it and credit Allowance to increase that!
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Answer :
In international accounting LIFO and extraordinary items are prohibited.
VAT Interview Questions -
Question 34. Is Push Down Accounting Accepted Under Generally Accepted Accounting Standards?
Answer :
Yes, in some cases. For example: The Federal Financial Institutions Examination Council (the "FFIEC") approved a reporting requirement, effective October 1, 1989, to use down accounting in certain acquisitions of national banks, state member banks and insured state nonmember banks. This reporting requirement is an addition to the Glossary to the Instructions to the Consolidated Reports of Condition and Income ("Call Report").
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Answer :
Bonds have discounts and premiums and accrued interest. Preferred Stock does not.
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Answer :
Fiscal year
Account executive Interview Questions -
Question 37. What Is The Difference Between The Accrual Accounting And Cash Accounting?
Answer :
The Cash Basis of accounting reports only transactions that have been completed in the current reporting period - or - what has "hit" the checking account (assuming all funds are deposited and disbursed only from that account) - The Accrual Basis of accounting reports all transactions that the entity has entered into and includes the asset, liability, income and expense related them.
In addition, the Cash Basis of accounting is considered OCBOA (Other Comprehensive Basis of Accounting ~ Other than GAAP) and the Accrual Basis (when implemented properly and fully) is considered GAAP (Generally Accepted Accounting Principles).
EDIT - The Accrual Basis is more desirable from a user's standpoint as it includes transactions that may exist were completed after the report dates that were initiated prior to the report date. It is generally more complete and more reliable than the cash basis - however, that does assume that the person preparing the statements has expertise of, not simply a cursory working knowledge of, GAAP and the accrual basis. For example, a set of financial statements printed out of QuickBooks are not necessarily GAAP compliant (or correct) although they may appear to be at first glance or to a layperson.
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Question 38. What Is The Difference Between Financial Accounting And Management Accounting?
Answer :
Very briefly, the difference has to do with the needs of the user.
Management accounting for is the internal users of an entity and Financial Accounting is for the external users.
Internal users (management) may be interested in the cost of making an item using process A versus process B. Whereas External users are mostly interested in the overall results of those management decisions.
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Question 39. What Is The Distinction Between Cost Accounting And Management Accounting?
Answer :
Cost accounting is concerned with cost accumulation for inventory valuation to meet the requirements of external reporting and internal profit measurement.
Management accounting relates to the provision of appropriate information for decision-making, planning, control and performance evaluation.
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Question 40. What Is The Difference Of Cost Accounting And Financial Accounting?
Answer :
Financial accounting encompasses all account presented on the face of the financial statement, its presentation, recognition, measurement and disclosures. Where as cost accounting is only focused on the cost of inventory.
Accounting Reports Interview Questions -
Answer :
The elegance of Accounting is that it is a purveyor of information, organized into systems, and exploited for a particular purpose. That is because Accounting is vague. Interestingly, information from accounting can be split into two methods: 1. Valuation 2. Evaluation
1. Valuation - This is the type of information that financial/Tax/Cost accounting attempts to tackle. What is that worth? How much of it came from this source of value? What will be the asset be worth in ten years? All of these questions are valuation methods and accounting provides an informational standpoint from which to analyze these questions and ascertain an answer to them.
2. Evaluation - This would be your classical managerial accounting. Did employee A provide hire effort? What should compensation look like? How are we performing? All are evaluation questions. Evaluation is especially important to Internal Audit and the control environment. You can easily image a professor conducting evaluation accounting to assign proper reward to students who exhibit learning through testing. -
Answer :
Adoption of international accounting standards is extremely costly. Developing counties usually use accounting standards that are most beneficial to them (based on who they trade with to ease accounting for transactions) or just another country's GAAP that works for the developing country. Ex. Mexico very closely resembles U.S. GAAP because of NAFTA and the quality of U.S. GAAP.
Should IFRS be implemented in developed counties, developing counties might be forced to adopt them as well in order to maintain trade relations. This could be extremely costly for smaller developing counties.
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Answer :
Accounting has been a part of today's life in today's environment and it has to be given more progress because it is very important.
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Answer :
For simplistic purposes, there is not much, if any, difference between "cost accounting" and "management accounting". These terms refer to the accounting techniques used internally by a company's management to determine the costs of running the business and help in decision making. For example, reports that compare budgeted to actual expenses are commonly used to monitor the successful management of a specific department or store within a larger enterprise.
Financial Accounting refers to accounting practices that result in financial statements used by various stakeholders of the business. Stakeholders may include management and employees, as well as vendors, suppliers, customers, bankers and regulators. The accounting practices used in compiling financial statements are referred to as "GAAP" or the generally accepted accounting principles as set forth by the Financial Accounting Standards Board in the U.S. In the U.S., external financial reports issued by public and/or regulated companies must comply with GAAP.
Some accounting methods used in cost accounting are not recognized by GAAP and therefore can only be used internally.
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Answer :
Financial accounting relates to the information presented based on past events and records.
Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends.
Financial accounting relates to the information presented based on past events and records.
Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends.
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Answer :
A sample answer to accounting interview questions like this is:
In response to the changing market accountancy professionals have to provide more management and consulting services, in addition to financial management. They have to assume a greater advisory role and develop more complex and flexible accounting systems.
Then continue to explain how you can meet this challenge. -
Question 47. Describe Any Accounting Process That You Have Developed Or Revised?
Answer :
Highlight how you have monitored and analyzed work processes to develop more efficient procedures and use of resources while still maintaining accurate and quality work outputs.
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Question 48. Give Me Examples Of The Accounting Reports You Have Prepared?
Answer :
Demonstrate your experience in maintaining accounting principles, practices and procedures to ensure accurate and timely financial statements and reporting. Discuss your ability to meet tight deadlines and undertake a multitude of accounting activities. Show your understanding of generally accepted and statutory accounting principles.
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Answer :
Focus on how the packages supported and simplified company specific processes, and how they met your exact business requirements. Display your knowledge of how the packages differ in areas such as price, complexity and functionality.
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Question 50. Which Accounting Applications Are Your Familiar With?
Answer :
Discuss the applications you have worked with. Focus on how you implemented the application, the steps taken during the conversion and integration of the accounting system and the training of staff to use the application.
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Question 51. What Are The Most Important Goals Of Accounts Receivable?
Answer :
These goals will depend on the needs of the organization. Show how you are aware of organizational needs and then identify the appropriate goals to meet them. Demonstrate a thorough understanding of what the goals express and how they support department and company objectives. Common aspects include positively impacting on company cash cycle, increasing cash flow, reducing DSO, reducing bad debt and write offs.
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Question 52. What Information Is Included In A Bill For Services?
Answer :
List the information, make sure you cover everything and highlight your attention to detail. Include a sample of a bill for service that you created in your interview portfolio.
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Question 53. What Software Applications Have Your Used For Accounts Receivable?
Answer :
List the applications you have used and expand on the value of the solutions they offered to your particular company. Look at aspects such as tracking transactions, assessing late payments, creating past due notices and printing out relevant reports.
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Question 54. What Role Did You Play In Collections?
Answer :
Again focus on the skills and abilities you bring to the collections function. Demonstrate how you have used your good interpersonal skills, perseverance, ability to managing conflict, negotiation skills and communication ability for successful collections.
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Question 55. Detail Your Responsibilities In Accounts Receivable?
Answer :
Discuss all your responsibilities. Focus on the skills and knowledge you used to perform these functions efficiently such as maintaining a high level of accuracy, good verbal and written communication skills, strong organizational skills, problem-solving skills, computer skills and a knowledge of accounting processes.
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Question 56. What Accounts Payable Applications Are Your Familiar With?
Answer :
With accounting job interview questions like this first list the applications you have used and then expand on the value of the solutions they offered to your particular business. Look at aspects such as managing vendor information, approval controls and providing payables reports.
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Question 57. Explain The Accounts Payable Cycle?
Answer :
Demonstrate your knowledge of this cycle - the length of time it takes the company to pay its accounts payable - and what the implications of the length of this cycle are for the company, for example cash flow.
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Question 58. Have You Ever Been Involved In An Invoice Dispute? How Did You Manage The Problem?
Answer :
Accounting job interview questions like this explore your conflict management skills. Emphasize your interpersonal skills, your maturity and your ability to stay calm in the face of difficulty. Describe the techniques you use to diffuse disputes such as asking questions to determine the reason for the dispute, not conveying blame and not becoming too emotional. Demonstrate your ability to work together with others to reach an acceptable resolution.
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Question 59. Tell Me About An Invoice Discrepancy You Discovered And How You Resolved It?
Answer :
Be specific about the type of discrepancy. Discuss the steps you took to identify and sort it out such as obtaining and checking the original order. Focus on the skills required to resolve the discrepancy such as attention to detail, problem analysis and problem resolution.
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Question 60. What Information Do You Require Before You Approve An Invoice For Payment?
Answer :
Focus on your monitoring and checking skills. Demonstrate your understanding of the documentation required for verification before payment is made.
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Question 61. What Are The Steps To Take Before You Approve An Invoice For Payment?
Answer :
Show your understanding of the invoice verification process. Go through each step in detail such as checking that goods have been received in proper condition or services rendered in a satisfactory manner. Explain the importance of each step.
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Question 62. How Many Invoices On Average Do You Handle On A Weekly/monthly Basis?
Answer :
Show your understanding of the invoice verification process. Go through each step in detail such as checking that goods have been received in proper condition or services rendered in a satisfactory manner. Explain the importance of each step.
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Question 63. What Is Your Greatest Achievement And Why?
Answer :
Before your interview think through everything you have done in the last five years and try to find at least one example which fits each of these situations.
Don't worry if your examples are not earth-shattering, as long as they give some evidence for possessing the quality in question.
You can answer these questions by first describing the SITUATION and/or TASK you had to achieve, then the ACTION you took in the situation and finally the RESULT or outcome. Some interviews consist almost entirely of these types of questions, in which case the order of the interview is set in advance with a standard list of questions. Even more so than usual answer questions honestly - honesty is essential in the job!
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Question 64. Tell Me About A Situation Where You Showed Determination?
Answer :
Questions like this are designed to bring out evidence of the qualities that you have which you will need to do the job. Be very well prepared with examples of situations where you have used these skills. If you have answered a few demanding graduate application forms, you will have come across most of these questions and prepared answers.
Other situations which are frequently asked about include the following:
Give an example of when you:
* Planned something.
* Took on responsibility.
* Led a team.
* Had to cope with pressure.
* Dealt with an unreasonable person.
* Had to make a difficult decision?
* Used initiative
* Influenced others.
* Solved a problem. -
Question 65. What Other Careers Are You Considering?
Answer :
The obvious answer would be careers in banking and insurance and other finance areas, but it is OK to mention any career here as long as you can argue your case effectively e.g. by demonstrating that the skills required are similar to those of an accountant.
Interviewers will be looking for evidence that you have analyzed your skills and interests in a logical manner when coming to a career decision, and also for signs of your commitment to accountancy.
However, in an interview you do not HAVE to tell the truth, the whole truth and nothing but the truth. If you admit to also applying for highly-competitive areas such as journalism or the Diplomatic Service, the interviewer is likely to assume that accountancy is your second choice. Similarly, you might find the interviewer challenging your interest in business if you said that social work or nursing was also an option.
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Answer :
Questions like this are testing your general interest in business and finance and your commercial awareness. You will be expected to come up with stories from the political, finance or other specialist sections of the papers that may be relevant to the firm or its clients.
Make sure that you read a quality newspaper regularly so that you are up to date with current business and financial affairs (One of the Big Four firms asks interviewees if they read the Financial Times). Try not to side with a particular opinion. Do not be party political! You should aim to provide a balanced assessment of a topic of interest to you. Explain why it interests you. Be prepared for follow-up questions.
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Question 67. Why Have You Applied To Our Firm?
Answer :
Quantifiable differences between chartered accountancy firms are often found on the basis of size rather than between individual firms. In general, the Big Four offer more international opportunities, household-name clients, more structured training, the chance to specialise in particular industries Smaller firms usually market themselves on factors such as greater client contact, greater variety of work (shorter audits at smaller clients), early responsibility, work-life balance, friendliness and smaller audit teams. In the end, graduates often choose between similar types of firm on the basis of the company culture and atmosphere, which often boils down to which of them seemed the friendliest at interview!
The interviewer will have expected you to have done your research on the firm - not just reading the careers section of their website but looking at the pages for clients, press releases etc. You should also look in the general business press for mentions of larger firms. Factors you could mention include:
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Question 68. What Qualities Have You Got That Would Make You A Good Accountant?
Answer :
Aside from the obvious ones such as numeracy and interpersonal skills, key skills will include determination and self discipline (to get through the difficult professional examinations) and an interest in the business world generally. An ability to work in (and ultimately lead) teams, strong analytical skills, good verbal and written communication skills and curiosity (particularly on the audit side) are some of the others you could mention - if you aren't strong in some of these areas then you may have problems making a persuasive case for yourself.
You are likely to be asked many questions seeking evidence of these particular competencies and will be expected to give examples which are backed up with evidence: for example, if asked about your leadership qualities, you should give an example of where you led a group successfully rather than just stating 'people always look to me to take the lead'.
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Question 69. How Did You Chose Your University?
Answer :
Be honest, but try to show evidence for careful consideration and logic in your choice. The interviewer may follow up this question by asking if, with hindsight, you felt you made the right choice, or how you feel the course you have followed could be improved. Constructive and thoughtful criticism is appreciated, but try to balance any criticisms with positive points too.
You could include in your answer any of the following:
* Advice & guidance from teaching/careers staff at school or college
* Geographical preferences
* Availability of a particular course
* The research and/or teaching quality of institutions
* Cost factors
* The reputation of the institution, or individual members of staff. -
Question 70. Were You Happy With The Grades You Achieved At A-level?
Answer :
Chartered Accountancy firms put a lot of weight on A-level grades as these have been found to be the best predictors of success in professional examinations.
If your A levels were not outstanding, this may sometimes depend more on the quality of the school you attended than your ability. In some inner-city schools it may be that a mediocre A-level performance that you achieved might have been the best in your school - if this is so, then make it clear. An average performance at a weak school academically may be the equivalent of a much better performance at some prestigious establishments.
Similarly, if there were any other external factors, such as illness, that may have affected your grades, tell the interviewers - but don't sound as though you are making excuses.
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Question 71. Why Did You Choose The A-levels You Did?
Answer :
The A-level subjects you chose are largely irrelevant, so answer this question honestly, although A levels which demand numeracy, analytical skills and communication skills may help.
If you have not done A levels, but entered university by some other route such as an Access course, explain why this was so - you may find the selectors will in this case put a lot of weight on your degree performance.
A-levels are close to the heart of Accountancy firms. This is because your performance in the profession's examinations have been shown to correlate quite closely to A-level examination performance. Many firms will have a points requirement, but will also be interested in your reasoning behind the choice of subjects.
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Question 72. Why Do You Want To Be An Accountant?
Answer :
A stereotypical answer to this question is that accountancy offers a respected professional qualification which can lead on to a wide range of opportunities in business. This is all true, but it doesn't answer the question of why YOU want to become an accountant - and if you give as general an answer as this, you can expect to be questioned in detail on the nature of the qualification and the opportunities you see it leading to.
Much of the income of the larger accountancy firms now comes from consultancy and related services rather than from audit. Even in audit you will spend much of your time visiting clients and asking questions, so good interpersonal skills are important. Your answer to this question should probably make this point.
Accountancy is now a fast changing profession, so they are looking for individuals with initiative who can manage change. Ensure that you have a considered answer to this question. It is bound to be asked!
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Question 73. What Makes You Different From Any Other Salesman?
Answer :
I am a different candidate but i am not as good as other salesman with some of those degree or with highly more experience but i am sure i like to see that i am a different from other salesman.
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Question 74. Pick Anything In This Room And Try To Sell It To Me?
Answer :
what kind of room are you looking for?( how many kids do you have?) how many berooms youre looking for..do you prefer with two baths, or two story.
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Question 75. How Many Rejections Do You Take In A Typical Week?
Answer :
couple, but however i need to move forward take my time to relief but try not keep it inside move to next level and try thanking the time for them.
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Question 76. What Do You Think Are The Most Important Skills In Succeeding In Sales?
Answer :
Put a number on the skills so that you can structure your sales interview answer around this. For example, "I think the 3 most important sales skills are ...". Rather than referring to specific sales techniques focus on competencies and abilities that every successful salesperson needs, such as:
► the ability to adjust your approach to different people and situations
► the ability to ask the right questions and listen carefully
► the ability to deal with disappointment and rejection
► the ability to stay motivated with a high energy level
► the ability to plan and prepare
► the ability to influence and persuade
► the ability to negotiate and reach agreement. -
Question 77. What Do You Like And Dislike About The Sales Process?
Answer :
This question is asked to explore the candidate's self-awareness and motivation. Know your strengths in the sales process as these will translate into what you like. Your "likes" and strengths should correspond to the main priorities of this sales position.
For example, if your strength is negotiating, describe how you enjoy this aspect of sales and your satisfaction at coming up with win-win solutions. Highlight how this has resulted in both satisfied customers and increased sales which is what this position is looking for.
When responding to the "dislikes" go carefully! The best approach is to choose a characteristic of your present or previous company such as its poor delivery on the sales you made or its lack of flexibility when it came to negotiating sales solutions. Answer in a positive manner as someone who is able to take these sort of problems in their stride and constructively improve on them. For example if the delivery of company products was slow and resulted in angry customers, discuss how you instituted a follow-up process that accelerated delivery.
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Question 78. What Is Your Psychology Of Selling?
Answer :
This is where you demonstrate your understanding of the entire structure of selling. Focus on your view of selling as a professional service directed at showing the customer how your product or service meets their needs and improves their lives.
Prepare a concise sales interview answer that highlights your knowledge of how to communicate and build rapport with a client, ask the right questions, identify and understanding the client's values, motives and needs, offer the appropriate solutions, handle objections and close the sale. Include adapting to different personality types and using persuasive communication skills.
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Question 79. You Are Out To Sell, What Is Your Objective?
Answer :
The candidate should understand the difference in selling a company and a product.
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Question 80. Sell This Pencil To Me?
Answer :
You should be quick in trying to get the right USP for the product and sell efficiently.
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Question 81. What Will You Do To Improve Your Product Or Service Or Your Company?
Answer :
Give a lot of examples and explain to him how you would improve either of this. This will increase a lot of customer service. You should have a commitment towards improving sales and increase the customer base.
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Question 82. What Do You Think Is Challenging In Marketing?
Answer :
Be prepared with concepts that you feel is most challenging in marketing. Understand the risks and challenges of the new market developments.
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Question 83. Explain One Of Your Marketing Innovations That You Have Done Till Now?
Answer :
You should be good at judgment as this can be one of the most trapping questions. You should be a person who will create something new and bring out with an innovation.
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Answer :
The term 'payroll' encompasses every employee of a company who receives a regular wage or other compensation. Some employees may be paid a steady salary while others are paid for hours worked or the number of items produced. All of these different payment methods are calculated by a payroll specialist and the appropriate paychecks are issued. Companies often use objective measuring tools such as timecards or timesheets completed by supervisors to determine the total amount of payroll due each pay period.
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Question 85. What Do You Mean By Vouching?
Answer :
Vouching is the process of checking the authentication of the voucher maintain by the management with the respective supporting document.
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Answer :
When preparing the payroll every month the accounts dept should be provided with the information such as status of the employee as if he is a permanent or on contract or in probation attendance and if there are any bonus to be given to the employee.
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Question 87. How Can Scope Of Internal Audit Help You?
Answer :
Internal audit is an independent appraisal function which is established by the management of an organization for the review of its internal control system as a service to the organization. To learn about the scope of internal audit.
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Question 88. How To Define Payroll?
Answer :
Payroll means processing a salary for salaried employee. There should be relation of "contract of service".
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Question 89. What Are Payroll Source Documents?
Answer :
The Payroll source documents are the employee Time Sheets (or equivalent) that record when the employee worked and generally what they did. These records are subject to audit by the Labor Department, EEOC and probably others that I haven't encountered. These should be bound into a Payroll Source Document folder.
However, there are other employee documents that need to be retained, e.g., their original employment application,employee reviews (if you do them),that record their federal/state tax exemption choices,reporting their annual wages and withholdings, etc.
These can be filed in separate Employee files (by employeename or number) -- or simply integrated into the Payroll Source Document folders (in the week in which they occur). I very much favor the latter -- especially if you're doingcomputer accounting -- in keeping with my "always file chronological" bias.
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Question 90. What Are The Benefits Achieved By Computerized Payroll System?
Answer :
While doing payroll through payroll packages / any othercalculated exel sheets we will get the appropriate data of salary payout / income tax payable & deductable values / statutory deductions particulars / Professional Taxdeductable & payable values.
Rounded off values with proper / appropriate format for filing IT & Statutory & PT will be generated through computerizedpayroll system.
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Question 91. What Is The Meaning Of Non Performing Assets?
Answer :
A non performing asset is one which does not earn any income. For example you have built a house consisting of 3 floors and the whole building is occupied by your family member and does not earn any rent, then this is called as a non performing asset.
A non performing asset is a type of asset which does not earn any income and these asset unable to cover up the investment put into it to hold.
If dues in the form of intrest and principle are not paid by borrower for the period of 90 days then the assets is called as N.P.A.
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Question 92. Explain Non Performing Asset?
Answer :
An asset or account of borrower,which has been classified by a bank or financial instution as sub-standard,doubtful or loss assets as per the guidelines issued by RBI.
An Asset/Advance is considered as non-performing in casse if interest or isntalment of principal or both remain unpaid for more than two quarters in a financial year.
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Question 93. What Experience Have You Had As A Cashier?
Answer :
Basically , almost all times, i must be in full of concentration.
secondly, before cash paying and cash receiving we must count and give , at in any situation.
Finally, quick listener, and speed and accuracy maintainence is very important.
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Question 94. What Is The Difference Between The Different Depreciation Methods?
Answer :
Different Methods Of Dpn .
Straight Line Method
Diminishing Value Method
Annuity Method
Depletion Method
Written Down value Method. -
Answer :
If u forgot depreciation we have to follow the preliminary principal of the depreciation. That is value of asset/life time of asset*100.
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Question 96. What Are The Various Means Of Calculating Depreciation?
Answer :
1. Double declining method
2. Units of production method
3. Straight-line method
4. Sum of year digit method
Depreciation Fund Method Insurance Method Annuty Method. -
Question 97. What Is The Difference Between Debenture Holders And Creditors?
Answer :
Debentureholder are those who provides long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods.
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Question 98. What Are Fixed Asset?
Answer :
fixed asset are assest which gives the business future benfit.
Fixed assets are those which are tangiable in nature and is not meant for sale in the near future and from which future benefits are derived.
Fixed Assets are those which are tangible and used for running the day to day business which are owned. As they are utilised for business, we save a part of the profit earned in the business to replace these Assets when they worn out.
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Answer :
BEP- Break Event Point: It indicates no Loss and no Profit.
The level of activity at which, total revenues equal total costs.
A point at which there is no profit and no loss. -
Question 100. Describe Some Of The Methods Used To Allocate Support Costs?
Answer :
Headcount or number of pc's per cost centre.
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Question 101. What Are Variable Costs?
Answer :
Variable costs are those that are directly proportionate with the quantity of production and or directly associated with the service.
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Question 102. What Is Marginal Cost?
Answer :
The marginal cost of an additional unit of output is the cost of the additional inputs needed to produce that output. More formally, the marginal cost is the derivative of total production costs with respect to the level of output.
Marginal cost and average cost can differ greatly. For example, suppose it costs $1000 to produce 100 units and $1020 to produce 101 units. The average cost per unit is $10, but the marginal cost of the 101st unit is $20.
The Econ Model applications Perfect Competition and Monopoly emphasize the roles of average cost and marginal cost curves. The short movie Derive a Supply Curve (40 seconds) shows an excerpt from the Perfect Competition presentation that derives a supply curve from profit maximizing behavior and a marginal cost curve.
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Question 103. Explain Cost Sheet?
Answer :
Cost sheet is a statement of cost for a product for given period of time.
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Question 104. What Is The Difference Between Cost Accounting And Financial Accounting?
Answer :
One of the basic differences cost accounting is helpfully in controlling the cost of production whereas financial accounting is concerned is helpfully in determining financial position of a concern .
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Question 105. What Are Fixed Costs?
Answer :
The costs that are fixed irrespective of production are fixed costs. EX: Rent, Depreciation.
Fix cost is those cost who not change in any time whether the production done or not it similar charge in every organization ex- salary of labor, supervisor factory rent insurance etc.
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Question 106. What Is Chargeback?
Answer :
A process in the industry where a wholesaler requests an amount that is the difference between the manufacturer's price to the wholesaler and the contract price to the resale customer.
The actual chargeback occurs when the wholesaler sells the manufacturer's product at contract price that is below wholesaler acquisition cost (WAC).
Especially evident in pharmaceutical industry.
In electronic commerce, a charge back is a reversal of a credit card transaction, which is usually initiated by the card issuer as requested by the cardholder. It may also be requested by the merchant. Charge backs usually occur due to fraudulent activity on the card (real or perceived), due to customer disputes, or from other authorization issues. -
Answer :
Capability Maturity Model Integration (CMMI) is a process improvement approach that provides organizations with the essential elements of effective processes.
It can be used to guide process improvement across a project, a division, or an entire organization. CMMI helps integrate traditionally separate organizational functions, set process improvement goals and priorities, provide guidance for quality processes, and provide a point of reference for appraising current processes.
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Answer :
CMM is an internationally recognized standard for measuring the maturity of an organization's software development processes and has become the primary benchmark multinational corporations use to judge IT service providers ' abilities to deliver high quality software. Bleum is now one of only a few companies in China to be assessed SEI CMM Level 5.
The Capability Maturity Model (CMM) was developed under the guidance of the Software Engineering Institute (SEI) of Carnegie Mellon University in the U.S. It is organized into five maturity levels with SEI CMM Level 5 being the highest. By operating at this high a CMM level, customers ' benefit from Bleum's ability to consistently deliver high quality software on schedule, which ultimately results in a lower total cost of software ownership due to less rework and easier maintenance.
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Question 109. Explain The Information About Cost Sheets?
Answer :
Cost sheet consists of the direct and indirect expenses incurred in producing a given product and classifying the expenses incurred according to office, administration, selling and distribution overheads.
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Question 110. What Is The Marginal Cost?
Answer :
Marginal Cost (MC):
The marginal cost of an additional unit of output is the cost of the additional inputs needed to produce that output. More formally, the marginal cost is the derivative of total production costs with respect to the level of output.Marginal cost and average cost can differ greatly. For example, suppose it costs $1000 to produce 100 units and $1020 to produce 101 units. The average cost per unit is $10, but the marginal cost of the 101st unit is $20.
The EconModel applications Perfect Competition and Monopoly emphasize the roles of average cost and marginal cost curves. The short movie Derive a Supply Curve (40 seconds) shows an excerpt from the Perfect Competition presentation that derives a supply curve from profit maximizing behavior and a marginal cost curve.
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Question 111. Explain Some Of The Methods Used To Allocate Support Costs?
Answer :
Headcount or number of pc's per cost center.
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Question 112. What Is The Difference Between Expenses And Expenditure?
Answer :
The difference between expenses and expenditure. Expense is the outflow from a profit oriented organization while expenditure is the outflow from non-profit organization.
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Question 113. Tell Me About Your Experience In Cost Accounting?
Answer :
Referring any books or questions wont give any experience, here experience, i think means, the level or the grade of Cost A/C works done etc.
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Question 114. Wat Is Bep In Cost Accounting?
Answer :
The level of activity at which total revenues equal total costs.
A point at which there is no profit and no loss.
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Question 115. What Are The Variable Costs?
Answer :
Variable costs are those that are directly proportionate with the quantity of production and or directly associated with the service.
Variable costs are the costs that change depending on how many products you sell or how many services you provide.
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Question 116. What Is The Cost Sheet?
Answer :
Cost sheet is a statement of cost for a product for given period of time.
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Question 117. What Is Difference Between Cost Accounting And Financial Accounting?
Answer :
The difference between "cost accounting" and "financial accounting are terms refer to the accounting techniques used internally by a company's management to determine the costs of running the business and help in decision making. For example, reports that compare budgeted to actual expenses are commonly used to monitor the successful management of a specific department or store within a larger enterprise.
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Question 118. What Is Cost Accounting?
Answer :
This can be described as the process of accumulating, measuring, analyzing, interpreting and reporting cost information that is both useful and relevant to the internal and external stakeholders of a business entity. External stakeholders are those who have a vested financial interest in a business or company. For example banks (loans), financial houses (mortgages), investors (investments), etc. Internal stakeholders are the business or company directors, managers, division heads, etc.
One of the many benefits of cost accounting is that it turns data into information, knowledge and wisdom about a business entity's operations that is useful for:
► measuring performance
► reducing or managing costs
► determining the fees or prices for goods and services
► deciding to authorize, modify or discontinue a program or activity. -
Question 119. What Are The Basic Principles Of An Internal Audit Controlsystem?
Answer :
The basic principles of financial internal control are explained below:Financial and accounting operations must be separated that is the handling of cash and the recording of the movement thereof should be done by different persons. Responsibility for the performance of the job must be clearly stated so that there may be no room for doubt or confusion subsequently.
Too much confidence should not be pinned in one individual. Nearly all frauds have been committed by trusted officials or employees. It is interesting to note that frauds have occurred owing to their being trusted. Relation principle relating to transfer of an employee from one job to another should be the inflexible guiding rule. This is an effective safeguard against collusion and is recognized as an important canon of sound organization.
Mechanization of the work wherever feasible and practicable should be resorted to, mechanical devices such as cash register, recording time clocks, calculation machines should be introduced. A system of control accounts should elegantly be fitted in the book keeping system.
The work should be so arranged that work done by one employee should be properly checked by independent employee. Such continuous and constant checking goods moral control and the errors and the frauds cannot go undetected.
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Question 120. Whats Are The Importance Of Evaluating An Internal Audit Department?
Answer :
Significance of Internal Auditing:
Internal auditing refers to an assessment activity managed within a corporation as a check to the entity. Its main function is to monitor control within the corporation.
The task of internal auditing is determined by organization itself, and its goals differ from those of the external auditor who is appointed to report independently.
The depth and goals of internal auditing vary widely and depend on the volume and structure of the body and the requirements of its administration. Ordinarily, the importance of internal auditing can be seen by one or more of the following:
► Implementing and monitoring of sufficient internal control. That is the duty of management that demands proper attention on a permanent basis. Internal auditors are ordinarily assigned definite task by management for reviewing controls, monitoring their function and suggesting improvements for them.
► Inspection of monetary and operational information. This may include review of the means used to recognize, determine, categorize and report such information and definite inquiry into individual items as well as in depth testing of balances, transactions and procedures.
► Review of the economy, effectiveness and efficiency of operations including non-financial controls of the corporation.
► Review of fulfillment of laws, regulations and other external requirements and compliance with administration policies and commands. -
Question 121. What Are The Importance Of Internal Audit To The Organization?
Answer :
An audit helps keep track of where the money is going and makes sure the money is going where it is supposed to and not in someone's pocket. An audit can also help a company know if it is losing or making more money.
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Question 122. How Does The Internal Audit Differ From An External Audit?
Answer :
Internal audit nothing but the checking the product that you produced.
External audit is checking your product by your customer.
Here it means you may not find mistakes in your processes but a third man who comes and check the system he may see some deviations in the system and give suggestions for the improvements of the system.
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Question 123. Explain The Difference Between Internal Audit And Statutory Audit?
Answer :
An internal audit is one which is conducted by the internal auditors of the company. It is not mandatory for the company and the company just conducts it to keep a check on the operations of the company. On the other hand statutory audit is very important because it is by the external auditors and it is mandatory for all kinds of companies. Statutory audit is usually conducted for various purposes like tax regulatory requires it for taxation purposes.
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Question 124. Tell Me That How I Can Evaluate The Internal Control Audit?
Answer :
Compliance procedures are tests designed to obtain reasonable assurance that these internal controls on which audit reliance is to be placed are in effect. The auditor can test the functioning of the controls and not the transactions. He can check the exceptions and departure from suggested internal control. When there is strict supervisory control the staff can not digress from prescribed control procedures. Compliance procedures can be applied with the help of audit sampling.
The samples can be selected from various categories of transaction in order to test the control aspect. He can examine evidence through inspection of signature. He can apply re performance and observation techniques. He can check custodial control over assets. He can examine the segregation of duties. He can go through supervisory controls. The auditor can test all the items included in the sample. The compliance procedures can ensure the auditor that internal control exists. The control is operating effectively. The control has so operated throughout the period of intended reliance.
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Question 125. Explain How To Do An Internal Audit Effectively?
Answer :
With internal audit we always need to be careful of any manipulations within the company itself.Errors and frauds within the company cannot be denied /overlooked at any cost.
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Question 126. What Does An Internal Audit Charter Contain?
Answer :
This charter describes the mission, independence and objectivity, scope and responsibilities, authority, accountability and standards of the Internal Audit function.
A charter is basically a delegation or grant of authority from a person or organization of authority to another person or organization. The purpose of an internal audit charter is to compel the departments that need to be audited to provide the information required by the auditor. Without this charter or similar authority most managers wouldn't see any benefit to being audited and would likely refuse to provide anything the auditor needed.
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Question 127. What Is An Internal Audit And What Is The Role Of Internal Audit?
Answer :
The internal audit is a continuous review of operations and records undertakes within the business and is normally done by specially assigned staff. It should operate independently of all the internal check and in no case should divest any one of the responsibilities placed upon him. Internal auditing is an independent appraisal activity within an organization for the review of operations as a service to management. It is managerial control which functions by measuring and evaluating the effectiveness of other controls.
To achieve its objectives the auditor has to review the following areas:
► Reliability and integrity of the information.
► Compliance with the policies, plans, procedures, laws and regulations.
► Safeguarding of assets.
► Economical and efficient use of resources.
► Accomplishment of established objectives and goals for operations or programs. -
Question 128. Explain Different Functions Of Internal Audit?
Answer :
The function of internal audit is concerned with analysis of internal check. The internal audit can look into the duties of each employee. All employees are provided jobs on the basis of their abilities. The auditor can test the effectiveness of internal check. The function of internal audit is examining the application of legal requirements.
The accounts are prepared under certain legal frame work. Verification of accuracy is a function of internal audit. The accuracy of accounting books and records can be verified with the help auditing techniques. The audit techniques include inspection, observation, inquiry, confirmation, computation and review. An auditor can check the accuracy through these techniques.
Confirmation of liability is a function of internal auditor can determine the work done by every person. The carelessness or negligence on the part of worker is noted. The concerned person is given a chance to explain his position. If the reason is not justified, the liability is confirmed. The function of internal audit is to examine the assets protection. The proper record is to be maintained. The possession must be in the hands of senior officer. The assets are used for business only. There are proper purchase and disposal of these assets. The internal auditor can check that assets are protected.
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Question 129. What Are The Essential Of Internal Audit?
Answer :
Planning is an essential feature of internal audit. The auditor can plan to check the accounting system. The plan may relate to accounting functions like purchase, sales, income, expenses and shares. The planning includes degrees of risk and extent of audit. It also states the nature of audit work. Controlling is an essential feature of internal audit. Auditor can examine the operations of accounting system. He can control audit work through audit program. The whole audit work is distributed among audit staff.
Recording is an essential feature of internal audit. The audit can record the facts and figures in order to express his views in the business activities. The audit note book and audit working papers are used to record the information. Independence is essential element of internal audit. The work of internal audit is done by an employee of the company. He must not be influenced by management. He must be free in developing audit program, audit investigation and audit reporting.
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Question 130. What Are Objectives Of Internal Audit?
Answer :
The purpose of internal audit is to keep proper control over business activities. When there is proper control there is maximum efficiency. The internal auditor determines the degrees of control over work. The purpose of internal audit is to evaluate the accounting system. It is concerned with checking proper authority for transactions like purchase, retirement and disposal of fixed assets. The vouchers can be compared with entries in order to determine that figures are facts.
The purpose of internal audit is to help the management. Internal auditor can point out the weakness. The internal audit can be used as a tool to correct the situation. The management functions can be performed properly. The purpose of internal audit is to review the working of business. The working of current tear can be reviewed in detail just to note the successful area of working. There is a need to locate the weak points. The corrective measures can be taken for proper working.
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Question 131. Explain The Difference Between Internal Audit And External Audit?
Answer :
The internal audit is conducted to help the management. The weakness of the management is disclosed. The external audit is conducted to help the shareholder. The rights of owners are protected. The appointment of internal audit is made by the management. The appointment in external audit is made by the shareholders. Internal audit is the part of internal control.
External audit is the not the part of internal control.The internal audit can suggest improvement in internal check system. The external audit can not suggest improvement in internal check system. The internal audit can perform his duties under the terms of appointment. The management can limit the scope of work at any time. The external auditor can perform his work to terms of appointment and other prescribed law. The scope is very wide. Internal audit is an employee of the company. He is not an independent person. External auditor is not an employee of the company.
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Question 132. How To Involve People In Audit?
Answer :
Use audits as opportunities to train others. Ask for a volunteer (who is not an auditor) to walk through the audit process with you as an assistant. This will provide others with a better understanding of what audits are and why they are necessary.
Invite all the auditees to the closing meeting. Having been an auditee, I know it helps to hear audit findings firsthand, the positive as well as the negative.
Involving people creates a feeling that everyone is a vital contributor to the goal of the company - compliance.
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Question 133. What To Do After The Audit?
Answer :
► Hold an auditors meeting to discuss the closing meeting content.
► Hold a closing meeting with all auditees involved with the audit. First, point out what was done well. Second, address the nonconformances and ensure the auditees understand the nonconformances and what part of the standard is not met.
► Issue the audit report in a timely manner.
► Encourage auditees to decide on the corrective actions. Allowing auditees to have input will give them ownership in implementing changes.
► Assist those responsible for completing the corrective actions with setting reasonable deadlines. The corrective action deadlines may vary depending on the severity of the non compliance.
► Be available and willing to help the auditees.
► Ask for feedback on how you and your audit team were perceived - adjust your approach if necessary. -
Question 134. What Techniques Used During An Audit?
Answer :
► Be professional at all times. Avoid being judgmental.
► Follow safety procedures, clean room procedures, and all other required procedures.
► Explain the purpose of the audit to the auditees.
► Answer questions or discuss compliance problems brought to your attention by auditees.
► Be flexible - if you find a potential problem not within the scope of the audit - evaluate the potential risks of the problem if left unaddressed.
► Encourage honesty with the auditees. -
Question 135. Explain The Before An Audit Processes?
Answer :
► Make sure the authority of the audit team is established - this will increase the cooperation from auditees.
► Decide what areas of the company will be audited and the frequency of the audits. Prepare a yearly audit schedule and distribute.
► Develop an audit plan. Decide what other audit resources are needed - checklists, other auditors.
► Determine the purpose of the audit - is it to comply with government regulations, quality standards, internal procedures and systems?Define the scope of the audit - is it an overview of the area being audited or is it to concentrate on a specific system within the area.
► Hold a meeting with the auditors to discuss the plan, purpose, and scope of the audit.
► Read the documents you will be auditing against. Know what they say. Develop questions to ask the auditees.
► Conduct an opening meeting with the auditees. -
Question 136. What Is Statutory Audit?
Answer :
It is a compulsory audit done by a CA. Finance Audit conduct by the CA to compliance the legal requirements of monitory issues.
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Question 137. What Is An Audit Process?
Answer :
The word 'Audit' is a derivative of the word 'Audition' which means 'to hear'. In earlier times, the Kings used to hear their accountants narrate the accounts verbally. However, as the complexity of the accounting function grew, need was felt to thoroughly check the accounts for mistakes misclassification and document the findings in a written form so that it can be used by the Management, stakeholders, investors, Government and various other bodies. This process is known as Auditing or Audit.
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Question 138. What Is The Difference Between Billable And Non-billable Expenses?
Answer :
Billable expenses are the expenses incurred by you on behalf of your customer in performing duties / service and supply. These expenses are recoverable from your customer by way of billing.
Non-billable expenses are the expenses incurred by you for carry out your own business / duties and responsibilities.
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Question 139. What Steps Would You Take Before Approving An Invoice For Payment?
Answer :
Following steps should be taken.
► Validate the invoice once it is matched for checking any holds.
► If workflow is implemented , initiate approval for the invoice. Once the invoice is approved/Approval not required(status in case WF is not implemented) you can go for payments.
► Create accounting after approval of invoice.
Finally for payments u need to format, build. -
Question 140. What Is The Meaning Of Invoice?
Answer :
Invoice is a statement which contains the under mentioned details compulsorily.
1. Invoice Number
2. Invoice date
3. Name and address of the person
4.Name and address of the person to whom invoice is made. ( Buyer of goods and service)
5. Description of goods / services involved
6. Applicable rates and taxes with percentages
7. Rate of the goods / services
8.Quantity of the goods and services
9. Quality or any other specifications
10. Price / Value of the goods and services
11. Invoice must be signed by the person making it
12. Terms and conditions of making the payment. -
Answer :
Excess payment to supplier is treated as Advance paid to supplier. This will show as debit balance in supplier account.
Supplier can send the payment by way of cheque / demand draft without adjusting in his subsequent bills.
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Question 142. What Is The Difference Between Consignor And Consignee?
Answer :
Consignor is the person who is the owner of the goods and who deliver the goods to the consignee.
Consignee is the person who receives the goods and he just possesses the goods and not the owner.
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Question 143. What Is The Difference Between Sap Memory And Abap Memory?
Answer :
SAP Memory: Global, user-related memory that extends beyond transaction limits. Access to the SAP memory is via SPA/GPA parameters.
ABAP Memory: Memory area within each main session, which can be accessed by programs using the EXPORT and IMPORT statements and which remains available using a series of program calls (call sequence).
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Question 144. How Is A Po (purchase Order Created)?
Answer :
A document or form used by a customer to issue an order for goods or services.
1.Procure to pay cycle with accounting entries
2.order to cash
3.record to report
4.Sox -
Question 145. How Does The Payment Mechanism Work?
Answer :
The open items of an account can only be cleared once you post an identical offsetting amount to the account. In other words, the balance of the items assigned to each other must equal zero. During clearing, the system enters a clearing document number and the clearing date in these items. In this way, invoices in a vendor account are indicated as paid, and items in a bank clearing account are indicated as cleared.
You generally use the payment program to clear invoices. Manual clearing of open items is therefore not usually necessary. However, you will sometimes have to clear items manually if, for example, you receive a refund from your vendor or you have set up a direct debit procedure.
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Question 146. What Do You Understand By Open Item Managed Account?
Answer :
Open item management ensures that all items that have not yet been cleared are available in the system. Only after every open item in a document is cleared can a document be archived.
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Question 147. What Do You Mean By Wcc?
Answer :
Winter compensation from contributions.
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Answer :
Institute of finance & accounts
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Question 149. What Do You Understand By Intercompany Settlement?
Answer :
A key functional area of SAP for Utilities that supports cross-company exchange of settlement data based on international standards such as EDI, XML, and Microsoft Excel.
Intercompany data exchange manages data transfer between retailers, distributors, and independent service operators with special regard to the requirements in deregulated markets.
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Question 150. What Is Fbt (fringe Benefit Tax)?
Answer :
The tax payable on a non-salary benefit provided to an employee or an associate of the employee. The employer is liable to pay any FBT and may choose to recover the FBT amount from the employee.
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Question 151. What Is Debit And Credit From The Banks Point Of View?
Answer :
Credit what comes in
Debit what goes out.
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Question 152. What Is Meant By Liabilities?
Answer :
Liabilities are what all u owe from the bank on notes payable or in other words it is:
Liability=Asset-Owners equity
What company owes that is liability. Liability = Asset-capital. -
Question 153. What Steps Would You Take Before Making A Payment?
Answer :
1. We should verify that any advances have been made.
2. See that all the services/goods delivered according to bill.
3. Any query is there to attend on that ultimately can be made payment. -
Question 154. What Are Steps To Define Supplier?
Answer :
Supplier should follow the check list.
1 He should create confidence in the client mind
2 Services to be done (fulfilled in time)
3 Services to be done according the specification of the client
4 He should be placed the another order by doing the above three steps. -
Question 155. What Is Evaluated Receipt Settlement?
Answer :
ERS is a business process between trading partners that conduct commerce without invoices. In an ERS transaction the supplier ships goods based upon an Advance Shipping Notice (ASN) and the purchaser upon receipt confirms the existence of a corresponding purchase order or contract verifies the identity and quantity of the goods and then pays the supplier.
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Question 156. What Is Total Flow Of Account Receivables?
Answer :
Flow of Accounts receivable should be in proportion to Accounts payable i.e. in terms of ration 2:1
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Question 157. After Reeving Payment From Customer, What Is Next Step Till Finalization?
Answer :
The next step would be adjusting receipt from customer against the customer outstanding with sale and to clear the customer account.
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Question 158. How Much Time Needs To Pass For An A/r Account To Be Considered Delinquent?
Answer :
After 90 days of the due date.
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Question 159. What Is Effective Collection?
Answer :
Its depends on the credit period of the company i.e. A company credit period 30 days 85 of the debtors collection should be recovered with in credit period. we can say the Effective collection.
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Question 160. Explain About Accounts Receivables In Accounting?
Answer :
It is money receivable from sundry debtors for sales made or services rendered.
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Question 161. What Are Examples Of Deferred Revenue Expenditure?
Answer :
It is an expenditure the benefit of which will be realised over a period and not during the current period.Ex-Heavy Advertisement expenditure incurred by the company for promoting the product.The benefits of this huge expenditure will be realised over the period and not in the same period when it is incurred.
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Question 162. Explain What Are Derivatives?
Answer :
Derivative instrument is an asset which derives ie, takes its origin from another asset. The simplest form of derivative is a forward contract, "It is an agreement to buy or sell an asset at a certain future time for a certain price"Other forms of of derivatives include futures,options and swaps, etc.
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Question 163. Explain Why Is Capital Amount Put In Liabilities And Not In Assets?
Answer :
One of the basic convention in accounting is separate legal entity.It means the business is different from those who manage it.When i contribute capital in to my business,it is liability to my business to repay it to me.
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Question 164. Explain What Is Brs?
Answer :
BRS - Bank Reconciliation Statement
A bank reconciliation statement is a statement prepared by organizations to reconcile the balance of cash at bank in a company's own records with the bank statement on a particular date.
The differences may arise because of the following reasons:
► Cheques deposited into bank but not yet collected by bank
► Cheques issued by the organization but not yet presented for payment
► Cheques directly deposited by customers into the bank
► Bank charges debited by bank
► Interest credited or some receipts directly collected by bank based on org. request.
► Some payments directly made by bank based on the organizations request.So, the statement shows the reasons as what are the reasons for difference in balance.
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Question 165. Who Is Responsible For Maintaining The Accounts Receivable In An Organization?
Answer :
Accountants... in big organization there will be a department to maintain AR department.
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Question 166. How Debtors Play Its Role In Accounts Receivable?
Answer :
Debtors are the main role of the business. he is the entire back bone of the business. The goodwill of the concern is in the hands of debtors because he is the person who takes our product or raw material to the customer or manufacture. so he is takes the main role in the business in finance and business development.
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Question 167. How Important Does Accounts Receivable For Small Business And Why?
Answer :
Accounts Receivables help small businesses by providing short-term liquidity. Also continued sales on credit provide the much needed continuity for small businesses.
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Question 168. What Are The Goals Of Accounts Receivable?
Answer :
As sales occurs every customer is not able to pay the bills that's where A/R are occurs the goal of A/R is to maintain summarize & record all the transactions related to unpaid a/c or future collections or A/R.
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Question 169. What Are The Three Golden Rules Of Accounts?
Answer :
Personal accounts --> Debit the benefit receiver, credit the benefit giver.
Real accounts --> Debit what comes in, credit what goes out.
Nominal Accounts --> Debit all expenses and losses, credit all incomes and gains.
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Question 170. What Is Reconciliation Statement And Investment Banking?
Answer :
Reconciliation statement is formerly known as a tool which is used to reconcile the bank passbook and our passbook.
Investment banking is a is a instrument which is used by the financial organization to take a better investment decision like issuing IPO stocks bond etc. -
Answer :
Time periods you define to age your debit items. Aging buckets are used in the Aging reports to see both current and outstanding debit items. For example you can define an aging bucket that includes all debit items that are 1 to 30 days past due.
Normal table used for this Report is < 30 days 30-60 days 60-90 days 90-180 days and >180 days.
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Question 172. What Is The Auto Invoice? What Are The Setup Steps For Auto Invoice?
Answer :
A powerful tool to import and validate transaction data from other financial systems and create invoices debit memos credit memos and on-account credits
Setup steps:
1. Define the line ordering rules
2. define the grouping rules - attache the line ordering rules to the grouping rules. -
Answer :
Assets are things which is provide service for long duration it may 3 years 4 years or for long period of time.
These items capitalize in our account books and charge depreciation in every year according to these rate it may 20 10 100. -
Question 174. What Is Reconciliation?
Answer :
You should have recorded in your cash books all amounts you ve actually received and payments you ve actually made. However the cash books may be incomplete as your bank may have put extra transactions through your account such as:
► bank fees or interest charges
► direct debits (payments) and direct credits (receipts).Doing a regular bank reconciliation will allow you to:
► take into account any extra transactions your bank puts through your account and
► check and record any errors or omissions.
By regularly doing a bank reconciliation (say monthly) you can be more confident that your records contain all the information you need to prepare your income tax return and activity statements. -
Answer :
Finance:It is the branch of economics that studies the management of money and other assets.In simpler terms it can be defined as the commercial activity of providing funds and capital.It addresses questions like -- what funds are required by the org? How they can be raised? How they have to be allocated etc.
Accounts: It is the occupation of maintaining and auditing records and preparing financial reports for a business. Accounts provides quantitative information about finances. It addresses issues like what amount of funds have been allocated to various activities how the book-keeping is being done etc.
Both functions are distinct but complimentary to each other.
Finance and accounts are highly specilized and distinct areas and hence most organizations have seperate sections of finance and accounts.
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Answer :
Service Provider's Details (i.e) Organations name and address.
Service Receiver's Details (i.e) Organations name and address.
Details of the service (i.e) for eg: Advertisement charges/Dying charges.
Tax (i.e) Service Tax on total chargable amount and cess or sur-charge on service tax.
And if there is any Expenses or abatements incurred by the service receiver less all those things and calculate service Tax and the cess for the balance amount. -
Question 177. To What Extent Were You Involved In Collections?
Answer :
Collection involves calling the customers for past due and this kind of question has to logically answered.
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Question 178. Explain What Is Factoring?
Answer :
Selling the rights to the amounts owing by debtors to a finance company for an agreed amount (which is less than the figure at which they are recorded in the accounting books because the finance company needs to be paid for providing the service).
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Question 179. Explain How Is A Journal Entry Recorded?
Answer :
Journal Entries are recorded on a double entry system ie debit and credit concept. In order to record a journal entry the following steps need to be followed.
► Enter the Journal entry number
► Enter the Date of transaction
► Enter the Debit item (as per the golden principles of accountancy)
► Enter the corresponding GL folio number
► Enter the Debit amount
► Enter the credit item(as per the golden principles of accountancy)
► Enter the amount in the credit column
► Provide a brief description of the transaction
► leave a single line before next transaction. -
Question 180. What Is An Accounts Receivables?
Answer :
Money owed by a business enterprise for merchandise bought on open account. It is also called "A/R" or just "Receivables". Accounts Receivable are the amounts owed to a company by its customers and/or employees.
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Question 181. How To Define Inter Company Transaction In Account Receivable?
Answer :
Before answering the above question let us first understand the meaning of Intercompany transactions. Intercompany transactions are those transactions that takes place between two or more entities of the same group of company. So the receivable of one entity would the payable of another entity. All intercompany transactions are eliminated befor preparing the final Balance sheet of the group company.
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Question 182. What Are The Components Or Materials Used By Accounts Receivable Departments?
Answer :
Accounts Receivable department is very important department of the company. The responsbilities of the department is approval of credit limit to the customer study the past history of customer credit sending invoices to the customer updation of the customer credit data factoring contacts with the factoring agents follow up of customers motivating the customers to pay the dues intime and communicating the information to the management. Credit sales data estimation of credit sales for the future period request for funds to finance department whenever they required follow up of customers receivables management.
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Question 183. Explain What Is The Difference Between Debenture Holders And Creditors?
Answer :
Debenture holder are those who provides long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods.
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Question 184. Explain What Is Customer Master Record?
Answer :
A Customer Master Record is a permanent record that contains key information about a business partner or a material. This information must be entered into the system before any transactions can take place involving the business partner [customer] or a material. Entering all the information about a customer or a material into the system b efore making transactions insures that subsequent transactions or inquiries will have consistent data and reports and analyses can be done in an orderly way. Master Records can be edited or changed when necessary. Changing master records is frequently called "Maintaining" in SAP
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Question 185. Explain What Are The Issues Related With Accounts Receivable?
Answer :
As the Accounts Receivable Supervisor, you will:
► Oversee and resolve all issues related to cash application to ensure accuracy
► Reconcile daily cash receipts to payment register
► Design and implement new Accounts Receivable processes and procedures
► Process short payment and accounts receivable adjustment forms
► Develop and maintain reports to assess team productivity
► Invoice special customer accounts
► Supervise five Accounts Receivable Associates
► Other duties as may be assigned.
Topic: Accounts Interview Questions
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