20+ Accounting Specialist Interview Questions and Answers

Accruals are expenses incurred but not yet paid, prepaid are payments made in advance, and other accounting terms include depreciation, amortization, and journal entries.

• Accruals are expenses that have been incurred but not yet paid for, such as salaries or rent.

• Prepaid expenses are payments made in advance for goods or services, such as insurance premiums or rent.

• Depreciation is the gradual decrease in value of an asset over time.

• Amortization is the process of spreading out ...read more

Depreciation journal entry is a debit to Depreciation Expense and a credit to Accumulated Depreciation.

• Debit Depreciation Expense account for the amount of depreciation expense

• Credit Accumulated Depreciation account for the same amount

• Depreciation Expense is an income statement account while Accumulated Depreciation is a balance sheet account

• Depreciation is recorded to allocate the cost of a long-term asset over its useful life

The journal entry to increase stock is a debit to the stock account and a credit to the cash or accounts payable account.

• Debit the stock account

• Credit the cash or accounts payable account

• Increase in stock is recorded as an increase in assets

• The journal entry will depend on the method of stock issuance (e.g. par value, no par value, etc.)

An accounting person should have strong analytical skills, attention to detail, and proficiency in accounting software.

• Strong analytical skills to interpret financial data and make informed decisions

• Attention to detail to ensure accuracy in financial records and reports

• Proficiency in accounting software to efficiently manage financial data

• Good communication skills to effectively communicate financial information to stakeholders

Journal entry for sale of fixed assets with profit involves debiting cash and accumulated depreciation, crediting fixed asset and gain on sale of asset accounts.

• Debit cash account for the amount received from the sale

• Debit accumulated depreciation account to remove the accumulated depreciation on the asset

• Credit fixed asset account to remove the cost of the asset from the books

• Credit gain on sale of asset account for the profit made on the sale

It depends on the specific goals and target audience of the ad campaign.

• Manual ad campaigns allow for more personalized and creative content tailored to specific audiences.

• Automatic ad campaigns can reach a larger audience more efficiently and quickly.

• Consider the budget, target audience, and desired outcomes when deciding between manual and automatic ad campaigns.

• A combination of both manual and automatic strategies may be the most effective approach.

• Examples: Manual campaig...read more

Accounting resolution involves identifying and resolving discrepancies in financial records.

• Accounting resolution is the process of investigating and rectifying discrepancies in financial statements.

• It involves identifying errors, reconciling accounts, and ensuring accuracy in financial reporting.

• Examples include resolving discrepancies in bank statements, reconciling accounts receivable and accounts payable, and correcting errors in financial reports.

Yes, aging schedules are commonly used in vendor creation to track outstanding payments.

• Aging schedules help track how long invoices have been outstanding for each vendor

• They provide a snapshot of the current status of accounts payable

• They are useful for identifying overdue payments and managing cash flow effectively

Accrued expenses are expenses that have been incurred but not yet paid for.

• Accrued expenses are recorded as liabilities on the balance sheet.

• They are typically expenses that have been incurred but not yet billed, such as salaries, interest, or taxes.

• Accrued expenses are recognized through adjusting entries at the end of an accounting period.

• They are important for accurate financial reporting and forecasting.

• Examples of accrued expenses include rent, utilities, and professiona...read more

Accrual is an accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual accounting matches revenues with expenses in the same accounting period

• It provides a more accurate picture of a company's financial position

• Example: A company records revenue when it earns it, even if the customer has not yet paid

Keyword targeting is a digital advertising strategy where ads are shown to users based on specific keywords they search for.

• Ads are displayed to users who search for or use specific keywords

• Helps in reaching a more targeted audience

• Commonly used in search engine marketing (SEM) campaigns

The golden rule of accounting states that debit what comes in and credit what goes out.

• Debit what comes in and credit what goes out

• Assets = Liabilities + Equity

• Revenue = Expenses + Net Income

Amazon Principles include Customer Obsession and Ownership.

• Customer Obsession: Putting the customer first in all decisions and actions.

• Ownership: Taking responsibility for outcomes and delivering results.

• Example: Amazon's focus on providing excellent customer service and taking ownership of any issues that arise.

Prepaid income is income received in advance before it is earned.

• Prepaid income is recorded as a liability on the balance sheet until it is earned.

• Once the income is earned, it is recognized as revenue on the income statement.

• Common examples of prepaid income include rent payments, subscription fees, and insurance premiums.

• Prepaid income is also known as unearned income or deferred income.

Accruals are adjustments made to financial statements to ensure that revenues and expenses are recognized in the period they occur, regardless of when cash is exchanged.

• Accruals help match revenues and expenses to the period in which they are incurred

• They are necessary for accurate financial reporting

• Examples include accrued interest, accrued wages, and accrued taxes

The accounting cycle is a series of steps that businesses take to record financial transactions and prepare financial statements.

• The accounting cycle typically includes steps such as analyzing transactions, journalizing, posting to the general ledger, preparing a trial balance, adjusting entries, preparing financial statements, and closing entries.

• Each step in the accounting cycle is important for ensuring accurate financial reporting and compliance with accounting standards....read more

Tally ERP is a software used for accounting and taxation purposes.

• Tally ERP is a popular accounting software used by businesses to manage their financial transactions.

• It has features that allow for easy tax calculations and compliance with tax laws.

• Tally ERP can generate various tax reports such as GST returns, TDS reports, and VAT reports.

• It also has the ability to integrate with other tax software such as ClearTax and Taxmann.

• Using Tally ERP can help businesses save time an...read more

Cash basis records transactions when cash is exchanged, while accrual basis records transactions when they occur.

• Cash basis recognizes revenue and expenses when cash is received or paid.

• Accrual basis recognizes revenue and expenses when they are earned or incurred.

• Accrual basis provides a more accurate picture of a company's financial position.

• Cash basis is simpler and easier to understand for small businesses.

• Example: A company using cash basis records revenue when it receiv...read more

Operating costs are the expenses associated with running a business on a day-to-day basis.

• Operating costs include rent, utilities, salaries, and supplies.

• These costs are necessary for the business to function and generate revenue.

• Monitoring and controlling operating costs is important for profitability and sustainability.

• Examples of operating costs: employee wages, office rent, insurance premiums, marketing expenses.