Accounting Interview Questions

good will is..................................... account

Personal a/c: In this account enter transactions related to persons.

Real a/c: in this account we should enter transactions related to assets.

Nominal a/c: In this a/c we should enter transactions related to Income & expenses.

Accounts means information system but Finance means play with money

accounting:Is an art of recording classifying and summarizing the business activities.

Finance" finance is nothing but cash.every business should maintain only cash.

Reconciliation show the balance between pass book and cash book, and also identify the mistakes.

reconciliation is comparing the bank pass book and cash book.

Prepare 201 This is a summery of all purchase and all sales All purchase including folloiwng Taxable purchase on which In put tax credit is receivalbe Taxable purchase on which In put tax credit is n...

Account payee means, who wrote cheque to whom, That person must and should have bank account.

CTS : cheque transferred system.

How do u get your information from other tax years so that you can provide the right notification to the IRS.

Since Fixed assets are used to generate periodic revenue, an appropriate proportion of the cost of fixed assets, which is believed to be used or expired for generation of periodic revenue, needs to be...

The value of land is not depreciate therefore it is not cover in the definition of depreciation.

Ratios used to judge the adequacy of liquid assets for meeting short-term
obligations as they come due, including
1) the current ratio,
2) the acid-test ratio,
3) the inventory turnover ratio, and
4) the accounts receivable turnover ratio.

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.

MIS Reports means management information system.which helps to analysis the monthly inflow and out flow of money, stock, staff performance.Not only monthly through MIS reporting we can compare yearly performance .

Report which gives the clear picture of input and output also helps us to improvise the business. The data for this report may vary business to business.

Example:
1. For finance it could be balance sheet.
2. For HR it tells about the attrition rate, headcounts.

Retail invoice is raise when any thing will sale out and the cash receipt will issue against any collection will be made

1)purchese a/c dr,input vat a/c dr, ramana a/c cr
2) RAJU A/C DR ,SALES A/C CR,OUTPUT VAT CR ,

1. purchase a/c Dr
vat input a/c Dr
to Bank/Creditor a/c

2. Bank/ Debtors a/c Dr
to Sales a/c
to vat output a/c

3. Vat output a/c Dr
to vat payable a/c

4. Vat payable a/c Dr
to vat input a/c
to Bank/cash a/c

Balance Sheet is Prepared with the compliance of Accounting Equation A=L+C and Accounting Standards and Schedule Vi of companies Act 1956.

Balance sheet is prepared by the accounting equation. ie Assets=Capital+Liabilities .

Asset created by an accounting entry (and included under assets in the balance sheet) that has no tangible existence or realizable value but represents actual cash expenditure. The purpose of creating...

1. Fictitious assets are not real assets, these assets are only imaginary assets.

2. Fictitious are assets not represented by tangible possession or property. Eg: preliminary expenses

It should be adjusted in only that assests account by charging extra dep. or charging less dep........

No Journal entry is needed. You just use the method that you changed to.

Once the material received the general entry will be Purchase A/c Dr XXXX To Supplier (Creditor) A/c Cr XXXXX When the L/C is opened the entry should be Supplier (Creditor) A/C Dr XXXXX To Suppl...

1-Debit the account of the applicant with us and credit the bank of the beneficary with the equal money
2-Debit applicant account with us and credit the suspense account with us when the applicant pay for us.

contingent liabilities are subjected to occurrence or not of a future event. Means a liability may be arise in future or not , it all depends on a future event. So these are not actual liabilities and shown as a foot note after balance sheet .

Contingent liability refers to liabilities which may or may not occur in the future. eg:court case

In periodic costing we come to know about the cost incurred at the end of the time period, whereas in perpetual cost we know about the cost incurred at each and every moment. Perpetual inventory system uses LIFO,FIFo and average cost method

Periodic inventory method calculate ending stock at the end of the accounting period, which could be Month to Date or Year to Date, while Perpetual inventory system calculates the ending stock on a co...

its depending on the basis he based on whether its monetary or accrual basis

As we are already aware about one of the concept of accounts i.e. prudence concept, which explains that all the expenses and losses which are to be held in near future should be recognized in advance ...