Estates Accountant Interview Questions and Answers

There are several types of derivatives in the capital market.

• Futures contracts

• Options contracts

• Swaps

• Forwards contracts

• Index-based derivatives

• Commodity derivatives

• Currency derivatives

• Interest rate derivatives

Fund accounting is a method of accounting used by non-profit organizations to track and manage their financial resources.

• It involves tracking and reporting on funds separately, rather than as a whole

• It is used by non-profit organizations, government agencies, and other entities that receive and distribute funds

• It ensures that funds are used for their intended purpose and that financial reports are accurate and transpar...read more

There are two types of Reconciliation - Bank Reconciliation and Account Reconciliation.

• Bank Reconciliation is the process of matching the bank statement with the company's records.

• Account Reconciliation is the process of matching the general ledger account with the subsidiary ledger account.

• Bank Reconciliation helps to identify any discrepancies in the bank statement and the company's records.

• Account Reconciliation hel...read more

Accountancy is the practice of recording, analyzing, and reporting financial transactions for individuals, businesses, and organizations.

• Accountancy involves the systematic recording of financial transactions.

• It includes analyzing financial data to provide insights and make informed decisions.

• Accountants prepare financial statements and reports to communicate the financial health of an entity.

• They ensure compliance wit...read more

A debtor is a person or entity that owes money or has a financial obligation to another party.

• A debtor is someone who has borrowed money or received goods or services on credit.

• Debtors can be individuals, businesses, or even governments.

• They are legally obligated to repay the borrowed amount or fulfill their financial obligations.

• Debtors are recorded as liabilities on the balance sheet of the creditor.

• Examples of debto...read more

A creditor is a person or entity to whom money is owed.

• A creditor is someone who has provided goods or services on credit.

• They are owed money by the debtor.

• Creditors can be individuals, businesses, or financial institutions.

• Examples of creditors include suppliers, banks, and bondholders.

The ledger entry for a credit sale involves recording the increase in accounts receivable and the corresponding increase in sales revenue.

• Credit sale is a transaction where goods or services are sold on credit, meaning the payment is expected at a later date.

• To record a credit sale, the accounts receivable account is debited to increase the amount owed by the customer.

• Simultaneously, the sales revenue account is credit...read more