Charter Global Chartered Accountant Interview Questions and Answers

Assignment must be consists of 20 pages

Q1. What is final account
Ans. 
Final account is the summary of a company's financial transactions for a specific period.
• Final account includes the balance sheet, profit and loss statement, and cash flow statement.

• It shows the financial position of the company at the end of the accounting period.

• Final account is used to evaluate the company's performance and make financial decisions.

• Examples of final accounts include annual reports and financial stat...read more
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Q2. What is accounting and what are characteristic
Ans. 
Accounting is the process of recording, classifying, and summarizing financial transactions to provide useful information to stakeholders.
• Accounting involves recording financial transactions such as sales, purchases, and payments.

• It classifies these transactions into categories such as assets, liabilities, and equity.

• It summarizes this information in financial statements such as balance sheets and income statements.

• Acc...read more
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Q3. What is mean by an interview
Ans. 
An interview is a formal conversation between an interviewer and an interviewee to assess the suitability of the latter for a job or position.
• An interview is a two-way communication process where the interviewer asks questions and the interviewee answers them.

• The purpose of an interview is to evaluate the skills, knowledge, and experience of the interviewee and to determine if they are a good fit for the job or positio...read more
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Q4. What in contingent asset
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A contingent asset is a potential asset that may be gained or lost depending on the occurrence of a future event.
• Contingent assets are not recognized in financial statements until the event that triggers their existence occurs.

• Examples of contingent assets include pending lawsuits, insurance claims, and potential tax refunds.

• Contingent assets are disclosed in the notes to financial statements.

• Contingent assets are not ...read more
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Q5. What is liability and character
Ans. 
Liability refers to the legal obligation to pay debts or fulfill other obligations. Character refers to the moral and ethical qualities of a person.
• Liability is a financial obligation that a person or company owes to another party.

• It can be in the form of loans, mortgages, or unpaid bills.

• Character refers to the personal qualities of an individual, such as honesty, integrity, and responsibility.

• It is important for a ch...read more
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Q6. What is contingent liability
Ans. 
Contingent liability is a potential obligation that may or may not occur in the future.
• It is a liability that depends on the occurrence of a future event.

• It is not a certain liability and may or may not happen.

• Examples include lawsuits, warranties, and guarantees.

• Contingent liabilities are disclosed in the notes to financial statements.
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Q7. What is mean by ledger
Ans. 
A ledger is a book or computer program used to record financial transactions.
• A ledger is used to keep track of all financial transactions in a business

• It contains separate accounts for assets, liabilities, income, and expenses

• Ledgers can be physical books or digital software programs

• They are essential for accurate financial reporting and analysis

• Examples of ledger software include QuickBooks and Xero
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Q8. What is mean by balance sheet
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A balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
• It provides a snapshot of a company's financial position.

• Assets are listed on the left side and liabilities and equity on the right side.

• The balance sheet equation is Assets = Liabilities + Equity.

• It helps investors and creditors evaluate a company's financial health.

• Examples of assets include cas...read more
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Q9. What is meant by corporate account
Ans. 
Corporate account refers to the financial records of a company or organization.
• Corporate account includes all financial transactions, assets, liabilities, and equity of a company.

• It is used to track the financial health of the company and make informed decisions.

• Corporate account is managed by the finance department and is audited by external auditors.

• Examples of corporate accounts include balance sheets, income statem...read more
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Q10. What is mean by cost accounting
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Cost accounting is the process of recording, classifying, analyzing, and allocating costs associated with a product or service.
• It helps in determining the cost of production

• It helps in cost control and cost reduction

• It helps in decision making by providing cost data

• It involves the use of various techniques such as standard costing, marginal costing, etc.

• Example: A company uses cost accounting to determine the cost of p...read more
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Q11. What is mean by last in first out
Ans. 
LIFO is a method of inventory valuation where the last items purchased are assumed to be sold first.
• LIFO assumes that the last items purchased are sold first

• It is commonly used in industries where the products have a short shelf life

• LIFO can result in higher cost of goods sold and lower net income during inflationary periods

• Example: A grocery store using LIFO will assume that the last batch of milk purchased will be so...read more
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Q12. What is mean by first in first out
Ans. 
First in first out (FIFO) is a method of inventory valuation based on the assumption that the first goods purchased are the first goods sold.
• FIFO assumes that the oldest inventory items are sold first

• It is commonly used in industries where perishable goods are sold

• FIFO results in higher cost of goods sold and lower net income during periods of inflation

• Example: A grocery store selling fruits and vegetables would use FI...read more
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Q13. Describe the process of accounting
Ans. 
Accounting is the process of recording, classifying, summarizing and interpreting financial transactions.
• Recording financial transactions in journals and ledgers

• Classifying transactions into appropriate accounts

• Summarizing the transactions into financial statements

• Interpreting the financial statements to make business decisions
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Q14. Definition of accounting
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Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.
• Accounting involves recording financial transactions such as sales, purchases, and payments.

• It also involves classifying these transactions into categories such as assets, liabilities, and equity.

• Finally, accounting involves summarizing this information in financ...read more
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Q15. What is mean by triple balance sheet
Ans. 
Triple balance sheet refers to the three financial statements - balance sheet, income statement, and cash flow statement.
• Triple balance sheet is a comprehensive financial reporting system that includes three financial statements.

• The three financial statements are balance sheet, income statement, and cash flow statement.

• The balance sheet shows the company's assets, liabilities, and equity at a specific point in time.

• The...read more
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