30+ Accounting Staff Interview Questions and Answers

The 5 steps in IND AS 115 for revenue recognition are: identification of the contract, identification of performance obligations, determination of transaction price, allocation of transaction price, and recognition of revenue.

• Step 1: Identification of the contract - Determine whether a contract exists with a customer.

• Step 2: Identification of performance obligations - Identify the distinct goods or services that the company has promised to transfer to the customer.

• Step 3: Det...read more

The shortcut key to duplicate voucher in Tally Prime is Ctrl+Alt+C.

• The shortcut key is used to quickly duplicate a voucher in Tally Prime.

• Pressing Ctrl+Alt+C will create a duplicate copy of the selected voucher.

• This shortcut can save time when entering similar transactions.

• It is a convenient way to replicate vouchers without manually entering all the details again.

Capital is shown on the liability side of the balance sheet because it represents the amount owed to the owners or shareholders of the company.

• Capital is considered a liability because it represents the company's obligation to repay the owners or shareholders their investment in the business.

• It is shown on the liability side to indicate that it is a claim against the company's assets by the owners.

• Capital can be in the form of contributed capital (such as common stock) or ret...read more

We can solve problems of our customers by actively listening to their concerns, offering solutions tailored to their needs, and providing excellent customer service.

• Listen attentively to customer complaints and feedback

• Offer personalized solutions based on individual customer needs

• Provide excellent customer service and follow up to ensure satisfaction

• Implement feedback from customers to improve services

• Train staff to handle customer concerns effectively

I use social media primarily for staying connected with friends and family, sharing updates, and following news and trends.

• I use social media platforms like Facebook, Instagram, and Twitter.

• I post photos, status updates, and share interesting articles or videos.

• I follow pages related to my interests such as cooking, travel, and technology.

• I use social media to stay updated on current events and trends in my industry.

• I engage with friends and family through comments, likes, an...read more

TDS stands for Tax Deducted at Source. Journal entry for TDS involves debiting TDS payable and crediting the respective expense account.

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

• Journal entry for TDS involves debiting TDS payable account.

• Crediting the respective expense account for which TDS is deducted.

• Example: If TDS is deducted on salary payment, the journal entry would be: Debit TDS Payable, Credit Salary Expense.

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

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• There are several methods of calculating depreciation, including straight-line, declining balance, and sum-of-the-years'-digits.

• Straight-line depreciation is the simplest method, where the asset's value is reduced by a fixed amount each year.

• Declining balance depreciation is...read more

Cash discount is a reduction in the amount payable by a customer for paying in cash, while trade discount is a reduction in the list price of a product offered to a customer.

• Cash discount is given to encourage prompt payment and is usually a percentage of the total invoice amount.

• Trade discount is given to wholesalers or retailers and is deducted from the list price before the customer pays.

• Cash discount is recorded as a reduction in accounts receivable, while trade discount ...read more

Stat audit is conducted by external parties for compliance with regulations, while internal audit is conducted by company employees for operational efficiency.

• Stat audit is conducted by external parties to ensure compliance with regulations and standards.

• Internal audit is conducted by company employees to evaluate operational efficiency and effectiveness.

• Stat audit is typically required by law or regulations, such as financial reporting requirements.

• Internal audit is more foc...read more

Recording transactions in Tally or SAP ERP9 involves entering all financial transactions into the software for accurate accounting.

• Ensure all transactions are accurately recorded in the software

• Double check entries to avoid errors

• Use appropriate codes and categories for different types of transactions

• Reconcile accounts regularly to ensure accuracy

• Generate reports to analyze financial data and performance

Transgloble solution is a global accounting software company.

• Transgloble solution is a leading provider of accounting software solutions worldwide.

• Their software helps businesses manage their financial transactions, reporting, and analysis.

• They offer cloud-based solutions for easy access and collaboration.

• Transgloble solution has a strong customer base and positive reviews in the industry.

Negative working capital occurs when current liabilities exceed current assets.

• Occurs when a company's current liabilities exceed its current assets

• Indicates potential financial trouble or inefficiency in managing short-term obligations

• Can lead to difficulties in paying off debts or funding operations

• Example: Company A has $100,000 in current assets and $150,000 in current liabilities, resulting in negative working capital

Checkpoints of invoice processing ensure accuracy and compliance.

• Verify invoice details match purchase order

• Check for correct pricing and quantities

• Ensure proper approval and authorization

• Confirm invoice is coded correctly in accounting system

• Review for any discrepancies or errors

An invoice in accounting is a document sent by a seller to a buyer, detailing the products or services provided and the amount due.

• An invoice serves as a request for payment from the buyer to the seller.

• It includes information such as the date of the transaction, itemized list of products or services, quantities, prices, and total amount due.

• Invoices are used for record-keeping, tracking sales, and managing accounts receivable.

• Examples of invoices include bills from utility c...read more

Tangibles are physical assets that can be touched and felt, while fixed assets are long-term assets that are not intended for sale.

• Tangibles include inventory, equipment, and property.

• Fixed assets include buildings, land, and machinery.

• Tangibles are usually used in day-to-day operations, while fixed assets are used for long-term investment.

• Both tangibles and fixed assets are recorded on a company's balance sheet.

Excel is a spreadsheet program used for organizing, analyzing, and presenting data in tabular format.

• Excel is used for creating spreadsheets with rows and columns of data.

• It allows for mathematical calculations, data analysis, and charting.

• Functions and formulas can be used to automate calculations and data manipulation.

• Data can be sorted, filtered, and formatted to create professional-looking reports.

• Excel is commonly used in accounting for budgeting, financial analysis, and...read more

The extension name of Excel is .xlsx

• The extension name for Excel files is .xlsx

• Other common extensions for Excel files include .xls and .xlsm

The trial balance is a statement that lists all the general ledger accounts and their balances to ensure they are in balance.

• It is a tool used in accounting to check the accuracy of the recorded transactions.

• It lists all the debit and credit balances of the accounts.

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

• If the trial balance doesn't balance, it indicates errors in the accounting records.

• It is prepared before the financial statements are generate...read more

When an asset is sold with profit, a journal entry is made to record the transaction.

• Debit the Cash account for the amount received from the sale

• Credit the Asset account for the original cost of the asset

• Credit the Gain on Sale of Asset account for the profit made

• Example: If an asset was sold for $10,000 with a cost of $8,000, the journal entry would be: Cash $10,000, Asset $8,000, Gain on Sale of Asset $2,000

Golden rules of accounting are basic principles that guide the process of recording financial transactions.

• The three golden rules of accounting are: Debit what comes in, Credit what goes out, Debit the receiver, Credit the giver, Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified in the accounting system.

• For example, when a company receives cash from a customer, the transaction would be...read more

Handling accounts involves recording financial transactions, analyzing data, preparing financial statements, and ensuring accuracy.

• Maintain accurate records of financial transactions

• Analyze financial data to identify trends and make recommendations

• Prepare financial statements such as balance sheets and income statements

• Ensure compliance with accounting principles and regulations

• Use accounting software to streamline processes and improve efficiency

Politics is the process of making decisions that apply to members of a group. It involves power, authority, and influence.

• Politics is the art of influencing people to achieve a common goal.

• It involves the use of power and authority to make decisions that affect a group of people.

• Politics can be seen in various settings such as government, organizations, and even in sports like cricket.

• In cricket, politics can refer to the behind-the-scenes maneuvering and lobbying for positio...read more

Tally is a software used for accounting purposes to record financial transactions and generate reports.

• Tally involves creating ledgers for different accounts such as sales, purchases, expenses, etc.

• Transactions are entered into the system and categorized under appropriate ledgers.

• The software automatically updates the balances of each account based on the transactions entered.

• Tally can generate various financial reports like balance sheet, profit and loss statement, and cash ...read more

Bank reconciliation is the process of comparing the balances in a company's accounting records to the balances shown on the bank statement.

• Bank reconciliation helps ensure that all transactions are recorded accurately in the company's books.

• It involves comparing the company's records of cash transactions with the bank's records.

• Differences between the two balances are identified and adjusted accordingly.

• Common reasons for differences include outstanding checks, deposits in tr...read more

Yes, I am familiar with ERP software such as SAP, Oracle, and Microsoft Dynamics.

• Familiar with SAP, Oracle, and Microsoft Dynamics ERP software

• Experience in using ERP software for accounting tasks

• Knowledge of how ERP software integrates various business functions

GST stands for Goods and Services Tax, a consumption tax levied on the supply of goods and services in many countries.

• GST is a value-added tax that is collected at each stage of the supply chain.

• It replaces multiple indirect taxes like sales tax and excise duty.

• GST helps in reducing tax evasion and increasing tax compliance.

• There are different GST rates for different goods and services, such as 5%, 12%, 18%, and 28% in India.

• Businesses registered under GST can claim input tax...read more

The structure of accounting refers to the organization and framework of financial information and reporting within a company.

• Accounting structure includes the chart of accounts, which categorizes financial transactions.

• It also involves the use of accounting principles and standards to ensure accuracy and consistency.

• Financial statements, such as the balance sheet and income statement, are key components of the accounting structure.

• Internal controls and processes are put in pl...read more

Veracity refers to the accuracy and truthfulness of data or information.

• Veracity is essential in accounting to ensure financial statements are reliable and trustworthy.

• Example: Ensuring that all transactions are accurately recorded in the books.

• Verifying the accuracy of financial reports before presenting them to stakeholders.

Journal entries are prepared to record financial transactions accurately and in a systematic manner.

• Journal entries help in maintaining accurate financial records.

• They provide a chronological record of all transactions.

• Journal entries are essential for preparing financial statements.

• They help in analyzing and tracking financial performance.

• Journal entries ensure compliance with accounting standards and regulations.

Technical accounting definition refers to the specific rules and guidelines that govern the preparation of financial statements.

• Technical accounting involves following Generally Accepted Accounting Principles (GAAP)

• It includes rules for recording transactions, preparing financial statements, and disclosing information

• Examples of technical accounting standards include revenue recognition, lease accounting, and inventory valuation

Current tax provisions and implications refer to the laws and regulations governing taxation and their impact on financial statements.

• Tax provisions are the rules and regulations governing the calculation and payment of taxes.

• Implications refer to the impact of tax provisions on financial statements, including income statements and balance sheets.

• Changes in tax provisions can have a significant impact on a company's financial performance and tax liability.

• Examples of current ...read more

An account is a record of financial transactions for a specific asset, liability, equity, revenue, or expense.

• An account is used to track the financial activity of a specific category within a company's financial statements.

• Accounts are typically organized into a chart of accounts to facilitate financial reporting and analysis.

• Examples of accounts include cash, accounts receivable, inventory, accounts payable, and retained earnings.

The location is not relevant for an accounting staff position.

• Location is not a determining factor for accounting staff as their work can be done remotely or in any office location.

• Accounting staff can work in various industries and sectors, such as finance, healthcare, retail, etc.

• The focus should be on the candidate's qualifications, skills, and experience rather than their location.

The expected CTC in this company will depend on the position, experience, and qualifications of the candidate.

• CTC will vary based on the level of the position - entry level, mid-level, or senior level.

• Experience and qualifications play a significant role in determining the CTC offered.

• Research industry standards and company policies to gauge the expected CTC range.

• Negotiation skills can also impact the final CTC offered.

Fundamentals of accounting refer to the basic principles and concepts that underlie the practice of accounting.

• The accounting equation (Assets = Liabilities + Equity)

• Double-entry bookkeeping

• Accrual accounting

• Financial statements (Balance Sheet, Income Statement, Cash Flow Statement)

• GAAP (Generally Accepted Accounting Principles)

• Debits and credits

• Cost accounting

• Budgeting and forecasting

• Internal controls

• Auditing

• Taxation

Accounting is the process of recording, summarizing, and analyzing financial transactions of a business.

• Accounting involves recording financial transactions such as sales, purchases, and expenses.

• It also includes summarizing these transactions into financial statements like the balance sheet and income statement.

• Analyzing financial data helps in making informed business decisions and evaluating the financial health of a company.

• Accounting principles and standards, such as GAA...read more