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

Global networking connects diverse computers and devices, enabling seamless communication and resource sharing across the world.

• Internet Protocol (IP): The foundational protocol that allows devices to communicate over the internet, enabling data exchange globally.

• TCP/IP Model: A set of communication protocols used for the internet and similar networks, ensuring reliable data transmission.

• Cloud Computing: Services like AWS and Google Cloud allow users to access and share resou...read more

Internet Tally accounting is a cloud-based financial management tool that enhances communication and data sharing globally.

• Cloud-based access allows users to manage accounts from anywhere with internet connectivity.

• Real-time data updates ensure that all stakeholders have access to the latest financial information.

• Facilitates collaboration among teams across different geographical locations, improving efficiency.

• Example: A company can have its accounting team in one country an...read more

Courses on computer concepts provide foundational knowledge for effective computer use in various applications, including accounting.

• Structured learning includes theoretical and practical components, ensuring comprehensive understanding.

• Courses often cover topics like operating systems, software applications, and data management.

• For example, an accounting software course teaches how to use tools like QuickBooks or Excel for financial analysis.

• Understanding computer networks i...read more

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

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

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.)

P2P cycle refers to the procure-to-pay cycle, which is the process of purchasing goods or services and making payments for them.

• The cycle starts with the identification of a need for goods or services.

• A purchase requisition is created and approved by the appropriate authority.

• A purchase order is generated and sent to the supplier.

• The supplier delivers the goods or services.

• The goods or services received are matched with the purchase order and invoice.

• An invoice is generated b...read more

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

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

Prepaid expenses are expenses that have been paid in advance but have not yet been incurred.

• Prepaid expenses are considered assets on the balance sheet until they are used up or expire.

• Common examples of prepaid expenses include prepaid rent, insurance premiums, and subscriptions.

• Prepaid expenses are initially recorded as assets and then gradually expensed over time as they are used or consumed.

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

Bad debt entry reflects uncollectible accounts, impacting financial statements and cash flow.

• Bad debt is recorded when it's clear a customer won't pay their invoice.

• The journal entry typically involves debiting Bad Debt Expense and crediting Accounts Receivable.

• Example: If $1,000 is deemed uncollectible, the entry would be: Debit Bad Debt Expense $1,000, Credit Accounts Receivable $1,000.

• This entry reduces net income and total assets on the balance sheet.

• It is important for a...read more

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.