Accounting Job Interview Questions
Following are the important questions that are usually asked in an interview for accounting and finance-related jobs.
The Expenses, Profit & Loss of an organisation are recorded in which account?
The nominal account records all the transactions of a business for one fiscal year.
What does a master budget include?
A Master Budget consists of Sales budget, Production budget and Material budget.
The revenues and expenses of a company are displayed in which statement?
The income statement displays all the revenues and expenses of a company.
What are the long-term assets which do not have any physical existence?
Intangible Assets have no physical existence. For Example, Goodwill, Brand Recognition, Patents etc. are known as Intangible Assets.
What is Current Liability?
Current liabilities are a company's short-term financial obligations that are due within one year or within a normal operating cycle.
Recording financial transaction is part of?
Bookkeeping refers mainly to the record-keeping aspects of financial accounting, and involves preparing source documents for all transactions, operations, and other events of a business.
What type of balance do asset accounts have?
Assets Account have a debit balance.
Which budget is prepared for Advertising, Salary, and Market Analysis?
The selling expense budget is usually based on the sales budget and the prior expense budgets in prior years.
Examining of financial information refers to?
Auditing is defined as the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements.
What are Outstanding Expenses?
An Outstanding Expense is a type of expense that is due but has not been paid. This expense becomes outstanding to the company when, this has taken the benefit, but the related payment has not been made simultaneously. For Example: Rent due but not yet paid.
Which person owes an amount to a business organisation for buying goods and services on a credit basis?
Debtors are the persons who owe an amount to a business organisation for buying goods and services on a credit basis.
What is an operating cycle?
An operating cycle refers to the time it takes a company to buy goods, sell them and receive cash from the sale of said goods. In other words, it's how long it takes a company to turn its inventories into cash. The length of an operating cycle is dependent upon the industry.
What is Activity Ratio?
Activity Ratios are a category of financial ratios that measure a firm's ability to convert different accounts within its balance sheets into cash or sales.
The kind of debts which are needed to be repaid in a short term is known as?
Current Liabilities are the debts that needed to be repaid in a short period.
Transaction is referred as which event in accounting?
In accounting, an economic event is referred to as Transaction.
Return on Investment =?
Return on Investment Ratio (ROI) = (Net profit / Total assets) x 100.
The expanded accounting equation is used by which statement?
The expanded accounting equation is used by the balance sheet.
What is the supporting evidence in a business transaction called?
Vouchers are proof that a business transaction has taken place.
Who is an external user of financial statements?
Creditor of the business is the external user of financial statements.
Which Ratio protects the Creditors?
Lower the Debt Equity ratio higher is the protection to creditors. Creditors usually like a low debt to equity ratio because a low ratio (less than 1) is the indication of greater protection to their money.
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