Sipani & Associates Chartered Accountants Junior Accounts Assistant Interview Questions and Answers

Knowledge about Accounts

Q1. Types of accounts
Ans. 
Types of accounts include asset, liability, equity, revenue, and expense accounts.
• Asset accounts represent items of value owned by a company, such as cash, inventory, and property.

• Liability accounts represent debts or obligations owed by a company, such as loans and accounts payable.

• Equity accounts represent the owner's interest in the company, including capital and retained earnings.

• Revenue accounts track income gener...read more
Answered by AI
Add your answer
Q2. What is jounal entry
Ans. 
A journal entry is a record of a financial transaction in a company's accounting system.
• It is used to record the debit and credit aspects of a transaction.

• Journal entries are typically recorded in chronological order.

• Each journal entry includes the date, accounts involved, amounts, and a brief description.

• They are used to update the general ledger and prepare financial statements.

• Example: A company receives cash from a...read more
Answered by AI
Add your answer
Q3. What is trail balance
Ans. 
A trial balance is a statement that lists all the general ledger accounts and their balances to ensure that debits equal credits.
• A trial balance is prepared to check the accuracy of the accounting records.

• It lists all the accounts and their balances, including both debit and credit balances.

• The total of debit balances should equal the total of credit balances.

• If the totals do not match, it indicates an error in the acc...read more
Answered by AI
Add your answer
Q4. What is balance sheet
Ans. 
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time.
• It shows the assets, liabilities, and shareholders' equity of a company.

• Assets include cash, inventory, property, and equipment.

• Liabilities include loans, accounts payable, and accrued expenses.

• Shareholders' equity represents the company's net worth.

• The balance sheet follows the formula: Asset...read more
Answered by AI
Add your answer
Q5. What is contingent liability
Ans. 
Contingent liability refers to a potential obligation that may arise in the future depending on the outcome of a specific event or circumstance.
• It is a possible liability that is uncertain and depends on a future event.

• Contingent liabilities are disclosed in the financial statements as footnotes.

• Examples include pending lawsuits, warranties, and guarantees.

• They are not recognized as actual liabilities until the event o...read more
Answered by AI
Add your answer