Accounting Associate 2 Interview Questions and Answers

Payment made to creditors post a journal will be reflected on the liabilities side of the financial statement.

• Payments made to creditors are considered as liabilities for the company.

• These payments will be reflected on the balance sheet under the liabilities section.

• The balance sheet shows the company's financial position at a specific point in time.

• Examples of liabilities include accounts payable, loans, and accrued expenses.

Accounts payable are amounts owed by a company to its suppliers for goods or services purchased on credit. Accounts receivable are amounts owed to a company by its customers for goods or services provided on credit.

• Accounts payable represent the money a company owes to its suppliers for goods or services received but not yet paid for.

• Accounts receivable represent the money owed to a company by its customers for goods or services provided on credit.

• Accounts payable are liabili...read more

CSR as per Companies Act, GST, and Income Tax Act involves mandatory spending on social initiatives by companies.

• Companies Act mandates certain companies to spend a portion of their profits on Corporate Social Responsibility (CSR) activities.

• GST does not have specific provisions related to CSR.

• Income Tax Act allows companies to claim tax benefits for the amount spent on CSR activities.

• CSR activities can include initiatives related to education, healthcare, environment, and po...read more

Depreciation is the allocation of the cost of tangible assets over their useful life, while amortization is the allocation of the cost of intangible assets over their useful life.

• Depreciation applies to tangible assets like buildings, machinery, and vehicles, while amortization applies to intangible assets like patents, copyrights, and trademarks.

• Depreciation is usually calculated using methods like straight-line or accelerated depreciation, while amortization is typically ca...read more

The trial balance is a statement that lists all the general ledger accounts and their balances to ensure that debits equal credits.

• The purpose of a trial balance is to detect errors in the recording and posting of transactions.

• It helps in ensuring the accuracy of the accounting records.

• The trial balance is prepared before the financial statements to identify any discrepancies.

• If the debits and credits do not balance, it indicates an error that needs to be investigated and cor...read more

Types of accounts include assets, liabilities, equity, revenue, and expenses.

• Assets are resources owned by a company, such as cash, inventory, and property.

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

• Equity represents the ownership interest in a company and includes common stock and retained earnings.

• Revenue is the income generated by a company through its primary activities, such as sales.

• Expenses are the costs incurred by a com...read more