Northern Institute of Engineering Technical Campus Interview Questions and Answers

The interview questions cover topics related to audit, accounting, cash sales, depreciation, and bank reconciliation statement.

• Audit and accounting are closely related as audit involves examining and verifying financial records prepared by accountants.

• Cash sales are recorded in the cash book and are an important source of revenue for businesses.

• Depreciation is the systematic allocation of the cost of a fixed asset over its useful life.

• BRS is prepared to reconcile the bank bal...read more

Depreciation methods include straight-line, double-declining balance, and units of production. Cash flow statement comprises of operating, investing, and financing activities.

• Straight-line method depreciates assets evenly over their useful life

• Double-declining balance method depreciates assets more heavily in the early years of their useful life

• Units of production method depreciates assets based on their usage

• Cash flow statement shows the inflow and outflow of cash from opera...read more

A journal entry for rent outstanding is recorded to show unpaid rent expenses.

• Debit Rent Expense account for the amount of rent owed

• Credit Rent Payable account for the same amount

• Example: Debit Rent Expense $1,000, Credit Rent Payable $1,000

Accounting standards are guidelines and rules set by regulatory bodies to ensure consistency and transparency in financial reporting.

• Accounting standards provide a framework for financial reporting

• They ensure consistency and comparability of financial statements

• Examples of accounting standards include GAAP, IFRS, and FASB

• They are set by regulatory bodies such as the SEC and the FASB

Current liabilities are debts or obligations that are due within one year or the operating cycle of a business.

• Examples include accounts payable, short-term loans, accrued expenses, and taxes owed.

• They are listed on the balance sheet and are important for assessing a company's liquidity and ability to meet short-term obligations.

• Current liabilities are different from long-term liabilities, which are debts or obligations due in more than one year.

• They can also include provisio...read more

Working capital is the difference between current assets and current liabilities. Current ratio is a measure of a company's ability to pay its short-term obligations.

• Working capital is calculated as current assets minus current liabilities.

• Current ratio is calculated as current assets divided by current liabilities.

• A high working capital and current ratio indicate a company's strong financial health.

• A low working capital and current ratio may signal liquidity issues.

• For examp...read more

VLOOKUP is a function in Excel used to search for a value in a table and return a corresponding value.

• Used to search for a value in the first column of a table and return a value in the same row from a specified column

• Requires four arguments: lookup_value, table_array, col_index_num, and range_lookup

• Example: =VLOOKUP(A2, B2:D6, 3, FALSE) - searches for the value in cell A2 in the table range B2:D6 and returns the value in the 3rd column