Ernst & Young Tax Assistant Interview Questions and Answers

Versant test, aptitude assessment, and Excel-related skills.

Q1. Differnce between ltcg and STCG
Ans. 
LTCG is tax on profits from assets held for over a year, while STCG is tax on profits from assets held for less than a year.
• LTCG is taxed at a lower rate than STCG.

• LTCG is applicable on assets held for more than a year, while STCG is applicable on assets held for less than a year.

• LTCG is calculated by subtracting the purchase price from the selling price, while STCG is calculated by subtracting the purchase price from ...read more
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Q2. What is Ltcg and Stcg
Ans. 
LTCG stands for Long Term Capital Gains and STCG stands for Short Term Capital Gains.
• LTCG is the profit earned from the sale of an asset held for more than a year.

• STCG is the profit earned from the sale of an asset held for less than a year.

• LTCG is taxed at a lower rate than STCG.

• Example: Selling a stock after holding it for 2 years would result in LTCG, while selling it after 6 months would result in STCG.
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Questions releated to reasoning

Cash vs UPI time:-15 min members:-10,

Q1. Tell me about yourself
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Q2. What is financial statement
Ans. 
A financial statement is a document that provides an overview of a company's financial performance and position.
• Financial statements include the balance sheet, income statement, and cash flow statement.

• They are prepared by companies to communicate their financial information to stakeholders.

• Financial statements help in assessing the profitability, liquidity, and solvency of a company.

• They are used by investors, credito...read more
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Q3. What is GAAP? and how its help us as a tax consultant
Ans. 
GAAP stands for Generally Accepted Accounting Principles. It is a set of standard accounting rules and guidelines.
• GAAP provides a framework for preparing financial statements and ensures consistency and comparability in financial reporting.

• As a tax consultant, understanding GAAP helps in accurately interpreting financial statements and identifying taxable income.

• GAAP also helps in determining the appropriate tax treatm...read more
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Q1. What is deferred revenue?
Ans. 
Deferred revenue is income received by a company in advance of earning it, resulting in a liability on the balance sheet.
• Deferred revenue represents a liability for the company until the goods or services are delivered to the customer.

• It is common in subscription-based businesses where customers pay upfront for services that will be provided over time.

• Once the revenue is earned, it is recognized on the income statement...read more
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Q2. Golden rules of accounting
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The golden rules of accounting are basic principles that guide the process of recording financial transactions.
• The golden rule of accounting is that for every debit entry, there must be an equal credit entry.

• There are three types of accounts: real, personal, and nominal. The golden rules differ for each type of account.

• For real accounts, the golden rule is: Debit what comes in, credit what goes out.

• For personal account...read more
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Q3. What is accrual concept
Ans. 
Accrual concept is a principle of recognizing revenue and expenses when they are incurred, regardless of when cash is exchanged.
• Revenue and expenses are recorded when they are earned or incurred, not when cash is received or paid.

• This concept ensures that financial statements accurately reflect the financial position of a company.

• For example, if a company provides services in December but doesn't receive payment until ...read more
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Q4. What is quick ratio
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The quick ratio is a financial metric used to measure a company's ability to meet its short-term obligations with its most liquid assets.
• Quick ratio is calculated by dividing quick assets (cash, marketable securities, accounts receivable) by current liabilities.

• A quick ratio of 1 or higher indicates that a company has enough liquid assets to cover its short-term liabilities.

• A quick ratio below 1 may suggest that a comp...read more
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Q1. Tell me about yourself
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Q2. Mostly around your resume
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Q1. Tell me about yourself
Ans. 
I am a detail-oriented Tax Associate with a strong background in accounting and tax law.
• Graduated with a degree in Accounting

• Completed internships at accounting firms

• Experience preparing tax returns for individuals and businesses

• Familiar with tax laws and regulations

• Strong analytical and problem-solving skills
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Q2. Basic accounting questions
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Q1. General question
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Q1. What is tds ? How is it different from tcs
Ans. 
TDS stands for Tax Deducted at Source, while TCS stands for Tax Collected at Source. Both are types of taxes collected by the government.
• TDS is deducted by the payer at the time of making payment to the payee, while TCS is collected by the seller from the buyer at the time of sale of goods.

• TDS is applicable on various types of income like salary, interest, commission, etc., while TCS is applicable on the sale of certai...read more
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