National Institute for Smart Government Executive Interview Questions and Answers

Accounting errors refer to mistakes made in financial records that can impact the accuracy of financial statements.

• Accounting errors can include mathematical errors, such as incorrect addition or subtraction.

• Errors in recording transactions, such as omitting or duplicating entries, can also be accounting errors.

• Misclassification of expenses or revenues can lead to accounting errors.

• Errors in applying accounting princip...read more

A trial balance is used to ensure that the debits and credits in a company's accounting system are equal.

• A trial balance is a list of all the general ledger accounts and their balances.

• It is prepared at the end of an accounting period to check the accuracy of the recorded transactions.

• The purpose of a trial balance is to identify any errors or discrepancies in the accounting records.

• If the debits and credits in the tri...read more

BRS stands for Bank Reconciliation Statement, which is a document that compares a company's bank records with its own accounting records.

• BRS helps to identify any discrepancies between the two sets of records

• It ensures that all transactions are accurately recorded and that no fraudulent activity has occurred

• BRS is typically prepared on a monthly basis

• Example: If a company's bank statement shows a deposit of $1000, but ...read more

Limited review is less extensive than an audit, providing limited assurance on financial statements.

• Limited review is a less comprehensive examination of financial statements compared to an audit.

• An audit involves a detailed examination of financial records, transactions, and internal controls.

• A limited review provides a moderate level of assurance on the accuracy and reliability of financial statements.

• Audits are typi...read more

Quarterly financial results are unaudited as they are not verified by an external auditor.

• Quarterly financial results are released every three months and provide a snapshot of a company's financial performance.

• These statements are not verified by an external auditor, unlike annual financial statements.

• The unaudited financial statements are subject to change and may not be as accurate as audited financial statements.

• Inv...read more

The 5 accounting assumptions are basic principles that guide the preparation of financial statements.

• 1. Going Concern: Assumes that the business will continue to operate indefinitely.

• 2. Consistency: Requires consistent accounting methods and practices over time.

• 3. Accrual: Records transactions when they occur, not when cash is exchanged.

• 4. Monetary Unit: Assumes that financial transactions are measured in a stable curr...read more

AS 9 and Ind AS 115 are accounting standards that differ in revenue recognition principles.

• AS 9 follows the 'realization' principle, recognizing revenue when it is realized or realizable.

• Ind AS 115 follows the 'control' principle, recognizing revenue when control of goods or services is transferred to the customer.

• AS 9 allows revenue recognition at different stages of completion, while Ind AS 115 requires a more string...read more