Chuka University Chartered Accountant Interview Questions, Process, and Tips

Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money.

Q1. What is accounting and characteristic of accounting
Ans. 
Accounting is the process of recording, summarizing, and analyzing financial transactions of a business.
• Accounting involves recording financial transactions such as sales, purchases, and expenses.

• It includes summarizing the recorded transactions in financial statements like the balance sheet and income statement.

• Accounting also involves analyzing the financial data to provide insights and make informed business decisio...read more
Answered by AI
View 3 more amswers
Q2. What are the benefit according to accounting
Ans. 
The benefits of accounting include financial transparency, informed decision-making, and compliance with regulations.
• Provides financial transparency by accurately recording and reporting financial transactions

• Enables informed decision-making by providing timely and accurate financial information

• Helps in compliance with regulations and legal requirements

• Facilitates effective budgeting and financial planning

• Assists in me...read more
Answered by AI
View 1 more amswer
Q3. What is last in fist out method
Ans. 
LIFO method used in inventory management
• Last In First Out (LIFO) is a method used in inventory management to value and track inventory.

• Under LIFO, the most recently acquired or produced items are assumed to be sold or used first.

• This method assumes that the cost of the most recent inventory is the cost of goods sold.

• LIFO is commonly used when prices are rising, as it results in a lower taxable income due to higher cost...read more
Answered by AI
View 1 more amswer
Q4. What is first in first out method
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 the products have a limited shelf life, such as food and beverage

• FIFO results in higher cost of goods sold and lower ending inventory when prices are rising

• Example: A company buys 10...read more
Answered by AI
Add your answer
Q5. What are the features of accounting
Ans. 
Accounting features include recording, classifying, summarizing, and interpreting financial transactions.
• Recording financial transactions

• Classifying transactions into different categories

• Summarizing transactions into financial statements

• Interpreting financial statements to make business decisions
Answered by AI
Add your answer
Q6. What is mean by profit and loss account
Ans. 
Profit and loss account is a financial statement that shows a company's revenues, expenses, and net income or loss for a specific period.
• It is also known as an income statement.

• It is used to determine a company's profitability.

• The revenue section includes sales, interest income, and other income.

• The expense section includes cost of goods sold, salaries, rent, and other expenses.

• The net income or loss is calculated by s...read more
Answered by AI
Add your answer
Q7. What is meat by trading and profit and and loss account
Ans. 
Trading and profit and loss account is a financial statement that shows the company's revenue, expenses, and net profit or loss for a specific period.
• Trading and profit and loss account is prepared to determine the profitability of a business.

• It includes all the revenue earned and expenses incurred during a specific period.

• The account starts with the opening stock, includes purchases, sales, direct expenses, indirect e...read more
Answered by AI
View 3 more amswers
Q8. What is meant by trial balance
Ans. 
Trial balance is a statement of all ledger account balances to ensure that the total debits equal the total credits.
• Trial balance is prepared at the end of an accounting period

• It lists all the ledger accounts and their balances

• The purpose is to ensure that the total debits equal the total credits

• If the trial balance does not balance, it indicates an error in the accounting records

• It is the first step in the preparation
Answered by AI
Add your answer
Q9. What is meant by balance sheet
Ans. 
A balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
• It is 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 to assess the financial health of a company

• Examples of assets include cash, i...read more
Answered by AI
Add your answer
Q10. What is meant by journal entries
Ans. 
Journal entries are records of financial transactions in chronological order.
• Journal entries are used to record financial transactions in a company's accounting system.

• They include the date, accounts affected, and amounts debited or credited.

• Journal entries are the first step in the accounting cycle and are used to create the general ledger.

• Examples of journal entries include recording a sale, paying a bill, or adjusti...read more
Answered by AI
Add your answer
Q11. What is meant by ledger
Ans. 
A ledger is a book or computer program used to record financial transactions.
• A ledger is a record-keeping system for financial transactions.

• It contains all the accounts and transactions of a business.

• Ledgers can be physical books or computer programs.

• They are used to keep track of debits and credits, and to prepare financial statements.

• Examples of ledgers include general ledger, accounts payable ledger, and accounts re
Answered by AI
Add your answer
Q12. What is meant by planning concerns
Ans. 
Planning concerns refer to the issues that need to be addressed while creating a plan.
• Planning concerns involve identifying the goals and objectives of the plan.

• It also involves determining the resources required to achieve those goals.

• Risk assessment and contingency planning are also important planning concerns.

• Examples of planning concerns include financial planning, project planning, and strategic planning.
Answered by AI
Add your answer
Q13. What is meant by triple colume cash book
Ans. 
A triple column cash book is a financial record that contains three columns for cash transactions.
• It is used to record cash transactions in a business.

• The three columns are for cash received, cash paid, and balance.

• It helps in maintaining accurate records of cash transactions.

• It is commonly used by small businesses and individuals.

• Example: A business may use a triple column cash book to record daily sales, expenses, an
Answered by AI
Add your answer
Q14. What is meat by double colume cash book
Ans. 
A double column cash book is a bookkeeping record used to track both cash and bank transactions.
• It has two columns for recording transactions - one for cash and one for bank

• It helps in maintaining a record of all cash and bank transactions in a single book

• It facilitates easy reconciliation of bank statements with cash book

• Example: A company maintains a double column cash book to record all its cash and bank transaction
Answered by AI
Add your answer
Q15. What is single colume cash book
Ans. 
Single column cash book is a cash book with only one column for recording cash transactions.
• It is a simple form of cash book used by small businesses.

• It records all cash receipts and payments in a single column.

• It does not differentiate between cash and bank transactions.

• It helps in maintaining a record of cash balance.

• Example: A stationary shop maintaining a single column cash book to record daily cash transactions.
Answered by AI
Add your answer
Q16. What is mean by petty cash
Ans. 
Petty cash refers to a small amount of cash kept on hand for minor expenses.
• Petty cash is used for small expenses that are not worth writing a check for.

• It is usually managed by a designated employee who is responsible for keeping track of the cash and receipts.

• The amount of petty cash varies depending on the needs of the organization.

• Examples of petty cash expenses include office supplies, postage, and minor repairs.

• P...read more
Answered by AI
Add your answer
Q17. What is meant by withdrawl cash
Ans. 
Withdrawal cash refers to the act of taking out money from a bank account or ATM.
• Withdrawal cash is the opposite of depositing cash into an account.

• It can be done at a bank branch or through an ATM.

• The amount of cash that can be withdrawn may be limited by the bank or ATM.

• Withdrawal cash can also refer to taking money out of an investment account or retirement plan.

• It is important to keep track of all cash withdrawals
Answered by AI
Add your answer
Q18. What is mean by communication
Ans. 
Communication is the exchange of information or ideas between individuals or groups.
• Communication involves both sending and receiving messages

• It can be verbal or nonverbal

• Effective communication requires clarity, empathy, and active listening

• Examples include conversations, emails, presentations, and body language
Answered by AI
Add your answer
Q19. What are the characteristics of communication
Ans. 
Communication is the process of exchanging information, ideas, and emotions between individuals or groups.
• Communication involves both verbal and non-verbal methods.

• It requires a sender, a message, a medium, and a receiver.

• Effective communication requires clarity, conciseness, and understanding.

• Active listening and feedback are important components of communication.

• Communication can be formal or informal, written or ora...read more
Answered by AI
View 1 more amswer
Q20. What is meat by conigent liability
Ans. 
Contingent liability refers to a potential liability that may arise in the future depending on the outcome of a specific event.
• It is a possible obligation that may arise from past events or current conditions

• It is not a certain liability but a potential one

• Examples include pending lawsuits, warranties, and guarantees

• Contingent liabilities are disclosed in financial statements
Answered by AI
Add your answer
Q21. What is meant by provision for doubtful debts
Ans. 
Provision for doubtful debts is an accounting practice where a company sets aside funds to cover potential losses from customers who may not pay their debts.
• Provision for doubtful debts is a financial provision made by a company to account for potential bad debts.

• It is an estimate of the amount of money that a company expects to lose from customers who are unlikely to pay their debts.

• The provision is created by recordi...read more
Answered by AI
View 1 more amswer
Q22. What is mean by bank reconciliation statement
Ans. 
A bank reconciliation statement is a document that compares the bank statement with the company's cash records.
• It helps identify any discrepancies between the bank statement and the company's records.

• It ensures that all transactions are accurately recorded and accounted for.

• It includes adjustments for items such as outstanding checks, bank fees, and deposits in transit.

• The statement reconciles the ending balance on the...read more
Answered by AI
View 2 more amswers
Q23. What is mean by bank account
Ans. 
A bank account is a financial account maintained by a bank for a customer.
• A bank account allows customers to deposit and withdraw money

• It can be a savings account, checking account, or other types of accounts

• Bank accounts may earn interest on the balance

• Examples of banks include Chase, Wells Fargo, and Bank of America
Answered by AI
Add your answer
Q24. What is meant by cash account
Ans. 
Cash account is a record of all transactions involving cash inflows and outflows.
• Cash account is a part of the general ledger that records all cash transactions.

• It includes all cash receipts and payments made by the company.

• It helps in tracking the cash balance of the company.

• Examples of cash transactions include cash sales, cash purchases, and cash payments for expenses.

• Cash account is important for preparing financia
Answered by AI
Add your answer