1000+ Accountant Interview Questions and Answers

The journal made when a purchase requisition is created is the Purchase Requisition Journal.

• The Purchase Requisition Journal is used to record the details of purchase requisitions.

• It includes information such as the date, description, quantity, and cost of the requested items.

• The journal entry debits the appropriate expense or asset account and credits the accounts payable or inventory account.

• The Purchase Requisition Journal helps in tracking and controlling the purchasing p...read more

Yes, employees can get transfers to other countries like foreign and gulf.

• Employees can be transferred to other countries if there is a need for their expertise or if there are job opportunities available.

• Transfers to foreign countries may require additional documentation and visa processes.

• Gulf countries often have a high demand for skilled professionals, making transfers more likely.

• The decision to transfer an employee depends on the company's policies, the employee's quali...read more

I am an experienced accountant with knowledge of accounting golden rules, depreciation, BRS entries, and sales entries.

• Accounting golden rules are the basic principles that guide the recording of financial transactions.

• Depreciation is the decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors.

• Types of depreciation include straight-line depreciation, reducing balance depreciation, and sum-of-years' digits depreciation.

• BRS entries refer...read more

Answering questions related to T codes, credit notes, PO and invoice mismatch, and process improvement for Accountant role.

• T codes for PRPO routed invoices: XXXX

• T code for manually processing invoice: XXXX

• T code for credit note: XXXX

• Credit note is issued for various reasons such as return of goods, overpayment, etc.

• PO and invoice mismatch can occur due to incorrect pricing, quantity, or item description.

• Process improvement can be achieved by implementing automation, streamlin...read more

A hard worker puts in a lot of effort but may not prioritize tasks effectively, while a smart worker manages time efficiently and produces quality output.

• Hard workers focus on putting in a lot of effort and may work long hours.

• Smart workers prioritize tasks and manage their time effectively.

• Hard workers may not always consider the most efficient ways to complete tasks.

• Smart workers find ways to work smarter, not harder, by utilizing their skills and resources effectively.

• Hard...read more

Record to report process involves invoice processing, journal voucher creation, and petty cash management.

• Invoice processing involves receiving and verifying invoices, coding them, and entering them into the system.

• Journal voucher creation involves recording financial transactions in the general ledger.

• Petty cash management involves maintaining a small amount of cash for minor expenses.

• All these processes are part of the record to report cycle, which is the process of recordi...read more

Accounts to be maintained in accounts include cash, accounts receivable, accounts payable, inventory, and fixed assets.

• Cash account for recording all cash transactions

• Accounts receivable for recording money owed to the company by customers

• Accounts payable for recording money owed by the company to suppliers

• Inventory for recording the value of goods held for sale

• Fixed assets for recording long-term assets such as property, plant, and equipment

A balance sheet can be prepared using the trial balance by categorizing accounts into assets, liabilities, and equity.

• Identify and list all the asset accounts from the trial balance.

• Identify and list all the liability accounts from the trial balance.

• Identify and list all the equity accounts from the trial balance.

• Calculate the total of assets, liabilities, and equity separately.

• Arrange the accounts in the balance sheet format: Assets = Liabilities + Equity.

• Include additional ...read more

Capital transactions involve long-term investments while revenue transactions involve short-term gains.

• Capital transactions involve the purchase or sale of long-term assets such as property, plant, and equipment.

• Revenue transactions involve the sale of goods or services in the normal course of business.

• Capital transactions affect the balance sheet while revenue transactions affect the income statement.

• Examples of capital transactions include the purchase of a building or mach...read more

Yes, there is an entry for purchase sales.

• The entry for purchase sales is a double-entry accounting system.

• The purchase is recorded as a debit to the inventory account and a credit to the accounts payable account.

• The sale is recorded as a credit to the sales account and a debit to the accounts receivable account.

• The cost of goods sold is recorded as a debit to the cost of goods sold account and a credit to the inventory account.

• Examples include recording the purchase of inven...read more

Purchase order comes first before GRN.

• A purchase order is a document issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services.

• A goods receipt note (GRN) is a document used to record the receipt of goods from a supplier.

• A purchase order is typically created and sent to the supplier before the goods are received and a GRN is generated.

• The purchase order serves as a formal request for the supplier to deliver the specified goods ...read more

A ledger is a book or computer program used to record financial transactions. There are two types of ledgers: general and subsidiary.

• A ledger is used to keep track of financial transactions.

• It can be in the form of a physical book or a computer program.

• There are two types of ledgers: general and subsidiary.

• The general ledger contains all the financial transactions of a company.

• The subsidiary ledger contains specific accounts, such as accounts receivable or accounts payable.

A computer is an electronic device that can perform various tasks by executing a set of instructions.

• Computer stands for 'Common Operating Machine Particularly Used for Technical and Educational Research'.

• It is a programmable machine that can store, retrieve, and process data.

• Computers can perform complex calculations, store large amounts of information, and communicate with other computers.

• Examples of computers include desktops, laptops, tablets, and smartphones.

The income tax slab rates vary based on the individual's or company's income level.

• Income tax slab rates differ for individuals, companies, and organizations.

• The rates are determined based on the income level of the taxpayer.

• Different countries have different income tax slab rates.

• Tax rates may vary for different income brackets.

• Tax rates can change over time due to government policies and reforms.

Assets and liabilities are recorded in the books of accounts to track the financial position of a company.

• Assets are resources owned by a company that have economic value, such as cash, inventory, or property.

• Liabilities are obligations or debts that a company owes to external parties, such as loans or accounts payable.

• Recording assets and liabilities helps in determining the financial health and net worth of a company.

• Assets are typically recorded on the debit side of the ba...read more

Use a max heap to keep track of the K largest elements in a continuous stream of integers.

• Create a max heap of size K to store the K largest elements.

• For each new element in the stream, compare it with the root of the max heap. If it is larger, replace the root with the new element and heapify.

• At any point, the root of the max heap will be the Kth largest element in the stream.

Accountancy is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.

• It involves keeping track of financial transactions such as sales, purchases, and payments

• It includes preparing financial statements such as balance sheets and income statements

• It helps businesses make informed decisions based on financial data

• Examples of accountants include auditors, tax accountants, and management ac...read more

The t code to post the receipt of goods is MIGO.

• The t code MIGO is used in SAP to post the receipt of goods.

• MIGO stands for Material Document Goods Movement.

• It is used to record the receipt of goods into inventory.

• The t code allows users to enter details such as the material, quantity, and storage location.

• It also provides options to specify the vendor, purchase order, and other relevant information.

• MIGO is commonly used in procurement and inventory management processes.

CMMI is a process improvement model. Sweep account is a bank account. Marginal cost is the cost of producing one additional unit. Expense is a cost incurred in the normal course of business. Expenditure is a payment made for goods or services.

• CMMI stands for Capability Maturity Model Integration and is a process improvement model used in software development.

• Sweep account is a bank account that automatically transfers funds from a checking account to an interest-earning accou...read more

Hard working is putting in a lot of effort and time, while smart working is finding efficient ways to achieve goals.

• Hard working involves dedicating long hours and putting in a lot of effort.

• Smart working involves finding innovative and efficient ways to complete tasks.

• Hard working may lead to burnout if not balanced with smart working.

• Smart working focuses on prioritizing tasks and utilizing resources effectively.

• Hard working may involve working late hours or taking on exces...read more

I would give a number of 8 for my Accounts knowledge.

• I have a strong understanding of financial statements and bookkeeping principles.

• I am proficient in using accounting software and tools.

• I have experience in preparing and analyzing budgets and financial reports.

• I am knowledgeable about tax regulations and compliance.

• I have successfully handled complex financial transactions and reconciliations.

Answering questions related to accounting concepts and software

• Accruals are expenses incurred but not yet paid, while prepaids are payments made in advance for future expenses

• Differed revenue is revenue received but not yet earned, while invoice is a bill for goods or services provided

• Credit note is a document issued to reduce the amount owed by a customer

• SAP T-codes are transaction codes used in SAP software to perform specific tasks

• Excel formulas are used to perform calcula...read more

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

The three important financial statements are the income statement, balance sheet, and cash flow statement.

• The income statement shows a company's revenue and expenses over a period of time.

• The balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

• The cash flow statement shows a company's inflows and outflows of cash over a period of time.

• These statements are important for investors, creditors, and management to understand a company's finan...read more

To ensure a journal is correct, one must verify accuracy, completeness, and proper documentation.

• Verify that all transactions are accurately recorded in the journal

• Ensure that the journal is complete and includes all necessary entries

• Check that each entry is properly documented with supporting evidence

• Reconcile the journal with other financial records to identify any discrepancies

• Perform regular reviews and audits to maintain accuracy and integrity

To work on a customer's service development, start by understanding their needs, conducting research, creating a plan, implementing changes, and continuously monitoring and improving the service.

• Understand the customer's needs and expectations for the service

• Conduct research to identify areas for improvement or new service offerings

• Create a detailed plan outlining the steps needed to develop the service

• Implement changes based on the plan, involving stakeholders as needed

• Conti...read more

Use sliding window technique to find minimum window in s containing all characters of t.

• Use two pointers to create a window in s

• Move the right pointer to expand the window until all characters of t are found

• Move the left pointer to shrink the window while maintaining all characters of t

• Update minimum window size as you iterate through s

The entry made when a person puts cash in the bank is a debit to the bank account and a credit to the cash account.

• Debit the bank account to increase the balance.

• Credit the cash account to decrease the balance.

• The entry follows the basic accounting equation: Assets = Liabilities + Equity.

• Example: Debit Bank Account $1,000, Credit Cash Account $1,000.

Profit and loss account is a financial statement that shows a company's revenues, expenses, and net income or loss for a specific period.

• It is also known as income statement or statement of operations.

• It shows the company's financial performance over a specific period of time.

• Revenues are the income generated by the company, while expenses are the costs incurred to generate that income.

• Net income or loss is the difference between revenues and expenses.

• It helps in evaluating t...read more

Answers to questions related to GST and TDS for Accountant position

• RCM in GST refers to Reverse Charge Mechanism where the recipient of goods or services is liable to pay tax instead of the supplier

• TDS on commission section refers to the deduction of tax at source on commission paid to agents or brokers

• Credit note is issued by the supplier to the recipient in case of reduction in value of goods or services supplied, while debit note is issued by the recipient to the supplier ...read more

Tax Deduct at source is a mechanism where a certain amount of tax is deducted from payments made to suppliers.

• Tax Deduct at source is also known as TDS (Tax Deducted at Source).

• It is a method of collecting tax at the source of income.

• The person making the payment is responsible for deducting the tax and remitting it to the government.

• TDS is applicable to various types of payments such as salaries, interest, rent, professional fees, etc.

• The deducted tax amount is then credited...read more

A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

• It provides a snapshot of a company's financial position.

• Assets are listed on the left side, while liabilities and equity are on the right side.

• The balance sheet follows the accounting equation: Assets = Liabilities + Shareholders' Equity.

• It helps investors and analysts assess the financial health and stability of a company.

• Example: If a co...read more

Debit is an entry recording a sum owned listed on the left-hand side or column of an account.

• Debit is an accounting term used to record an increase in assets or a decrease in liabilities.

• It is listed on the left-hand side of an account.

• Examples of debit entries include furniture, computer, and account receivables.

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 company's assets, liabilities, and shareholders' equity.

• Assets include cash, accounts receivable, inventory, and property.

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

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

• The balance sheet follows the formula: Assets = Liabilities + Shareholders' Equity.

• It helps inv...read more

Depreciation is the decrease in value of an asset over time. Fixed assets are long-term assets that are not easily converted to cash. Capital gains are profits from the sale of an asset.

• Depreciation is the allocation of the cost of an asset over its useful life

• Fixed assets are tangible assets that are expected to provide economic benefits for more than one year

• Examples of fixed assets include buildings, machinery, and vehicles

• Capital gains are the profits earned from the sale...read more

Journal entry is a record of financial transactions. Golden rule is a principle of accounting that ensures accuracy in recording transactions.

• Journal entry is a chronological record of financial transactions.

• It includes the date, accounts involved, and amounts debited or credited.

• Golden rule states that for every debit entry, there must be a corresponding credit entry and vice versa.

• This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced.

• For...read more

Program to find longest consecutive sequence and length of longest path in a binary tree.

• Traverse the binary tree using depth-first search (DFS)

• Keep track of the current consecutive sequence length and the longest consecutive sequence found so far

• Update the length of the longest path as you traverse the tree

The minimum number of coins required to express a given amount of money is calculated using a dynamic programming approach.

• Use dynamic programming to calculate the minimum number of coins required for each amount from 1 to the given amount.

• Start with the base case of 0 coins required for amount 0, then iterate through each coin type to calculate the minimum coins required for each amount.

• Choose the minimum of the current minimum coins required and the minimum coins required f...read more

Accrual is recognition of revenue/expenses when earned/incurred. Provision is an estimated expense/liability.

• Accrual is based on actual transactions while provision is based on estimates.

• Accrual is recognized when revenue is earned or expenses are incurred, regardless of payment.

• Provision is recognized when there is a probable expense or liability, even if the amount is not yet known.

• Examples of accrual include recognizing revenue for services provided but not yet invoiced, o...read more

Ledger is a book of accounts where transactions are recorded, while Trial Balance is a statement that shows the balances of all ledger accounts.

• Ledger is a primary book of accounts where all transactions are recorded chronologically.

• Trial Balance is a statement that shows the balances of all ledger accounts at a particular point in time.

• Ledger is used to prepare Trial Balance.

• Ledger contains all the details of transactions, while Trial Balance only shows the balances.

• Errors i...read more

The basic concept in accounting is the double-entry system, which involves recording every transaction in two accounts: debit and credit.

• Double-entry system is the foundation of accounting

• Every transaction is recorded in two accounts: debit and credit

• Debit refers to the left side of an account and credit refers to the right side

• Debit and credit must always balance

• Examples: recording a sale, paying rent, receiving payment from a customer

The documents required to audit food or tariff bills include invoices, receipts, purchase orders, bank statements, inventory records, and tax returns.

• Invoices and receipts provide evidence of the transactions and payments made.

• Purchase orders help verify the items purchased and their prices.

• Bank statements show the financial transactions related to the bills.

• Inventory records assist in reconciling the stock and ensuring accuracy.

• Tax returns provide information on the tax impl...read more

Capitalization of asset, lease accounting under IND AS, depreciation and amortization, and golden rules of accounting.

• Capitalization of asset refers to the process of recording an expenditure as an asset rather than an expense.

• Lease accounting under IND AS requires lessees to recognize lease assets and liabilities on their balance sheets.

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

• Amortization is the systematic allocation of ...read more

To explain the product to the customer, focus on its unique features and benefits, provide clear and concise information, and address any questions or concerns.

• Highlight the key features and advantages of the product

• Use simple and easy-to-understand language

• Provide real-life examples or case studies to illustrate the product's value

• Address any potential concerns or objections the customer may have

• Offer demonstrations or trials to showcase the product's functionality

• Listen act...read more

Financial statements are prepared at the end of the month (EOM) to reflect the financial position and performance of the company.

• Financial statements include the balance sheet, income statement, and cash flow statement.

• The statements are prepared using the accrual basis of accounting.

• Adjusting entries are made to ensure that revenues and expenses are recognized in the correct period.

• The statements are reviewed for accuracy and completeness before being distributed to stakehol...read more

TDS stands for Tax Deducted at Source. The Golden rule of accounts is Debit the receiver, Credit the giver.

• TDS is a tax deducted by the payer at the time of making payment.

• The Golden rule of accounts states that for every debit entry, there must be a corresponding credit entry.

• Expected salary can vary based on experience, qualifications, and the company's budget.

Returning purchased goods will decrease inventory and accounts payable on the balance sheet.

• Returning purchased goods will decrease the inventory account on the balance sheet.

• Accounts payable will also decrease as the company will no longer owe the supplier for the returned goods.

• The decrease in inventory and accounts payable will result in a decrease in total assets and liabilities on the balance sheet.

• The impact on the balance sheet will depend on the value of the returned ...read more