File Name: finance and accounting interview questions and answers .zip
Among the things that you need to plan and prepare for would be the questions that will most likely be asked during your interview. Preparation is the key to making a good first impression, particularly for first-time applicants. Consequently, lack of preparation could lead to nervousness and inability to answer questions satisfactorily. I will help you do well during your accounting job interview, which is why this e-Book has been created to specifically guide you on how best to answer 30 very common accounting interview questions.
Target Audience This guide is designed to help anybody who is planning to attend accounting job interview in any company, big or small.
With the accounting interview question and answers provided in this e-Book, you can better prepare for the interview and feel more confident during the question and answer session with your interviewer. All explanation and answers are based on user submitted comments and opinion. Exforsys Inc is not responsible for correctness of the same.
How to make a vat entry in books including setoff? What account is salary outstanding? Is it real, personnel or nominal account? What are the advantages and disadvantages of the following methods of depreciation?
Describe and discuss the relevance of the fisher effect and the purchasing power parity theories…? What is short term solvency ratio? What is the difference between personal account real account and nominal account? What does finalization of accounts mean? If an asset is purchased and the same is not used for the financial year, should the comp… 5 9. What is contingent liabilities? What is the difference between accounts and finance? Retail invoice vs. Tax invoice 8 What is evaluated receipt settlement?
How to handle credit claims? What are some methods to allocate support cost? Explain what are provisional entries? How have you monitored the regulations that affect both your industry and your accounting position? How many types of fixed asset in accounting? What are they? What are fictitious assets? What would you do if upper management issues a new policy and it was questionable to you? Why rule of nominal account is exactly opposite with the rule of personal and real account?
What are mis reports and do you prepare it? What is bank reconciliation statement? What is letter of credit? What is the difference between accounts payable and bills payable, accounts receivable … 14 What is shadow balance? Why always liabilities are on left side and assets on right side in balance sheet? What is meant by turnover? What is joc in accounting? Why depreciation is not charged on land?
What is the difference between the periodic and perpetual method, how will you record it in your book? How to make a VAT entry in books including setoff? Read More Answers What Account is Salary outstanding?
Asked by Sajith Answer contributed by Naveen HP Salary outstanding is an administrative expense or rather an indirect expense. If the salary outstanding is related to previous year then it shall be debited to profit and loss account as an expense and the amount related to current year shall be shown as current liabilities under the liabilities side of the balance sheet. As far as it is real, personnel or nominal is concerned, it is www.
If you want to use your expense in current period to generate extra income use double declining method. If you are not concerned about extra income use straight- line method. Describe and discuss the relevance of the Fisher Effect and the Purchasing Power Parity theories to a foreign currency dealer in a merchant bank? The Fisher effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate.
Therefore, real interest rates fall as inflation increases, unless nominal rates increase at the same rate as inflation. The smaller the real interest rate the longer it will take for savings deposits to grow substantially when observed from a purchasing power perspective. Purchasing Power Parity Theory of Exchange Rate is a theory, which establishes the fact that the exchange rates between currencies are in equilibrium in the event of equality in the purchasing power of each of the countries.
This precisely means that the ratio of the price level of a fixed amount of goods and services of the two countries and the exchange rate between those two countries must be equivalent. What is Short Term Solvency Ratio? Asked by Divyagarg09 Answer contributed by Suji Short-term Solvency Ratios Its a ratio to measure the firms ability to meet short-term financial obligations.
With this the firm will avoid financial distress in the short-run. There are two most important Short-term Solvency Ratios 1. Current Ratio 2. Quick Ratio Read More Answers Asked by Ferozbm Answer contributed by Rama Krishna The total business transactions are divided into three.
Debit the receiver and credit the giver 2nd category of transactions related to Real accounts ex: buildings, machinery, cash etc. RULE: Debit what comes in and credit what goes out Nominal accounts include all the transactions related to expenditures, incomes, losses and profits.
Ex: - rent paid, rent received, bad debts, profit on sale of an asset. What does Finalization of Accounts mean? Asked by S. If an asset is purchased and the same is not used for the financial year, should the company charge the depreciation and the reason for the same?
Asked by Swati Answer contributed by Suresh Purohit www. What is Contingent Liabilities? Asked by Ayaz Ahmed Answer contributed by Vasudeo Contingent liabilities are those liabilities which are not liabilities as of now. In future they may become liabilities. They are called contingent because they are not real.
Example: A bank shows all bank guarantees it has issued as contingent liabilities in its balance sheet. Reason: those bank guarantees may be invoked and may actually become liability in some unknown date in future. Contingent liabilities are mentioned in balance sheet and annual report. There is a solid reason for the same. Suppose any contingent liability becomes a real liability in future then the stake holders in the company should not get surprised by sudden expense by the company.
Investors need to be informed of possible liabilities in future. What is the difference between Accounts and Finance? Asked by Gorakh. As such, it is concerned with recording the business event in a monetary form whether the cash is involved or not at the time of recording the business transaction.
Example: Consider a situation where a firm has bought material for 50, on This amount is to be paid after 30 days from the date of purchase to the supplier on In this though money is not spent on Accounting functionalities involve, 1.
Recording of transactions Online transactions, Journal vouchers 2. Checking the prime books Cash book, Journals and Bank book 3.
Mike Simpson 0 Comments. The accounting field is very competitive. Not surprising, considering working as an accountant can be very lucrative. Plus, it comes with long-term career potential. The median salary for the 1. How do you make that happen?
Accounting interview questions will vary depending on the employer, the level of the accounting position, the requirements of the accountancy job and your career history. You will get a mix of general job interview questions, including questions about technical and current accounting issues, your accountancy skills and experience and behavioral interview questions that explore your accounting job competencies. Use the interview answer help to prepare your own excellent responses to these typical accounting interview questions. Typical accounting interview questions that explore your general technical accounting skills and knowledge include:. Which accounting applications are you familiar with?
Download PDF Here are accounting interview questions for fresher as well as experienced candidates to get their dream job.
Accounting can be defined as the production of financial information. It means that accounting allows us to see things like how much money you are earning, how much you are worth, how much money you spend and where you can improve to make even more money! Did you use accounting applications at your previous companies or prefer working manually? I think all are good though, but Microsoft Accounting Professional is best because it offers reliable and fast processing of accounting transactions that saves time and increases proficiency.
The Accountant Interview As of May , there were just over 1. Every business in the nation has an accountant on staff, contracts with an accountant, or relies on an accounting firm to help them manage their financial affairs. Accountants are indispensable.
Sample finance interview questions with practical answer guidelines. Prepare for success in your finance interview and secure the financial job opportunity. Finance is a wide field covering insurance, retail banking, investment banking and other financial services.
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