60+ Accounts & Finance Executive Interview Questions and Answers

TDS stands for Tax Deducted at Source. Section 192 C of TDS pertains to TDS on payment of arrears.

• TDS is a tax collection mechanism where tax is deducted at the source of income.

• Section 192 C of TDS deals with TDS on payment of arrears.

• Arrears refer to the payment of salary or other dues that were not paid in the previous financial year.

• The employer is required to deduct TDS on such arrears at the time of payment.

• The rate of TDS for arrears payment is the average rate of inco...read more

The golden rules of accounting are principles that guide the recording of financial transactions.

• Real accounts: Debit what comes in and credit what goes out. Examples include assets like cash, buildings, and equipment.

• Personal accounts: Debit the receiver and credit the giver. Examples include accounts of individuals, firms, or organizations.

• Nominal accounts: Debit all losses and expenses and credit all incomes and profits. Examples include revenue, expenses, and gains.

• These ...read more

GST compliances include filing of GSTR 1, 3B and 2A with specific due dates.

• GSTR 1 is filed monthly or quarterly depending on the turnover of the business.

• Due date for GSTR 1 is 11th of the following month for monthly filers and 13th for quarterly filers.

• GSTR 3B is filed monthly and due date is 20th of the following month.

• GSTR 2A is an auto-populated form and due date is not applicable as it is for reference purposes only.

A cost sheet is a document that shows the cost of producing a product or providing a service.

• It includes direct and indirect costs such as labor, materials, overhead, and depreciation.

• It helps in determining the selling price of a product or service.

• Example: A cost sheet for a bakery would include the cost of ingredients, labor, rent, utilities, and packaging.

• It is used by businesses to analyze their costs and make informed decisions about pricing and production.

• It is also us...read more

Pivot Table is used to summarize, analyze and present large amounts of data in a structured manner.

• It helps in creating reports and charts from complex data sets.

• It allows users to quickly and easily summarize and analyze large amounts of data.

• It provides a flexible way to view data from different angles.

• It can be used to group, filter, and sort data based on various criteria.

• It is a powerful tool for data analysis and decision-making.

Tally is an accounting software used for managing financial transactions and generating reports.

• Tally is used for bookkeeping, inventory management, payroll processing, and tax management.

• It has features like automatic calculation of taxes, bank reconciliation, and invoice generation.

• Tally also provides real-time financial reports like balance sheet, profit and loss statement, and cash flow statement.

• It can be customized to suit the specific needs of a business.

• Tally is widel...read more

The most important quality of an accounts executive is attention to detail.

• Attention to detail is crucial in maintaining accurate financial records.

• An accounts executive must be able to spot errors and discrepancies in financial statements.

• They should also be able to identify patterns and trends in financial data.

• Attention to detail helps in identifying potential financial risks and opportunities.

• For example, an accounts executive may notice a discrepancy in inventory levels ...read more

Accrued expenses are expenses that have been incurred but not yet paid, while prepaid expenses are payments made in advance for goods or services.

• Accrued expenses are recorded when the expense is incurred, regardless of when it is paid.

• Prepaid expenses are recorded when the payment is made, and the expense is recognized over time as the benefit is received.

• Journal entry for accrued expenses: Debit Expense account, Credit Accrued Expense account.

• Journal entry for prepaid expen...read more

Capital market is a platform where companies and governments can raise funds by selling securities to investors.

• Types of capital market include primary market and secondary market

• Primary market is where new securities are issued for the first time

• Secondary market is where existing securities are traded among investors

• Mutual fund is a type of investment vehicle that pools money from multiple investors to invest in stocks, bonds, or other assets

• Mutual funds are managed by profe...read more

The journal of contingent asset records potential assets that may be received in the future.

• Contingent assets are potential assets that may be received in the future.

• They are recorded in the journal of contingent asset.

• These assets are not certain to be received, hence they are contingent.

• Examples of contingent assets include insurance claims, legal settlements, or potential sales of assets.

• The journal entry for contingent assets includes debiting the contingent asset account...read more

Banking data storage refers to the secure and organized storage of financial information by banks.

• Banks store customer information, transaction history, and account details in secure databases.

• Data is often encrypted and backed up to prevent loss or theft.

• Banks must comply with regulations regarding data privacy and security, such as GDPR and PCI DSS.

• Cloud storage solutions are becoming more popular for banks to store and access data remotely.

• Examples of banking data storage ...read more

Interacting with founders after waiting a long time

• Be patient and respectful while waiting for the opportunity to interact with the founders

• Prepare thoughtful questions or topics to discuss with the founders to make the most of the interaction

• Show genuine interest in the founders' work and achievements to build a positive rapport

• Listen actively and engage in meaningful conversations to leave a lasting impression on the founders

A data entry operator is responsible for inputting data into a computer system or database.

• They ensure accuracy and completeness of data entered

• They may also be responsible for verifying data and making corrections

• They work with various types of data such as financial, medical, or customer information

• They may use specialized software or tools for data entry

• They need to have good typing skills and attention to detail

GST returns are regular statements that taxpayers must file with the government to report their tax liability.

• GST returns are filed monthly, quarterly, or annually depending on the type of taxpayer.

• They contain details of sales, purchases, and tax paid on both.

• GST returns must be filed even if there is no business activity during the period.

• Late filing of GST returns can result in penalties and interest charges.

• GST returns can be filed online through the GST portal or through...read more

I have a strong knowledge of accounting principles and practices.

• Proficient in bookkeeping, financial statements, and budgeting

• Experience with accounting software such as QuickBooks and Xero

• Knowledge of tax laws and regulations

• Ability to analyze financial data and provide recommendations

• Experience with accounts payable and receivable

• Familiarity with auditing procedures

• Understanding of cost accounting and inventory management

Tally entries for experienced and freshers in finance and accounts executive role.

• Experienced professionals should have knowledge of advanced Tally entries such as payroll, inventory management, and GST.

• Freshers should have basic knowledge of Tally entries such as creating ledgers, voucher entries, and generating reports.

• Both experienced and freshers should be familiar with Tally shortcuts and functions to improve efficiency.

• Examples of Tally entries include creating a sales ...read more

Vlookup is a function in Excel used to search for a specific value in a table and return a corresponding value from another column.

• Vlookup stands for 'Vertical Lookup'

• It is used to search for a specific value in the first column of a table

• It returns a corresponding value from another column in the same row

• It is commonly used for data analysis and management

• Syntax: =VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])

• Example: =VLOOKUP(A2, B2:C10, 2, FALSE) will se...read more

Opening and closing balance refers to the beginning and ending amounts of a financial account or period.

• Opening balance is the amount of money or value in an account at the start of a period.

• Closing balance is the amount of money or value in an account at the end of a period.

• Opening balance is carried forward from the previous period's closing balance.

• Closing balance is calculated by adding or subtracting transactions during the period from the opening balance.

• Opening and clo...read more

Non-PO invoices are invoices that do not have a purchase order associated with them, while PO invoices are invoices that have a purchase order.

• Non-PO invoices are received without a purchase order, often for services or urgent purchases.

• PO invoices are matched with a purchase order to ensure accuracy and approval before payment.

• Non-PO invoices may require additional approval processes compared to PO invoices.

• Examples: Non-PO invoice - payment for a repair service without prio...read more

Finance involves managing money, investments, and financial activities to achieve financial goals.

• Finance is the management of money and investments.

• It includes activities such as budgeting, investing, and analyzing financial data.

• Finance helps individuals and organizations make informed financial decisions.

• Examples of finance include banking, investing in stocks, and creating financial plans.

• Finance also involves understanding financial markets and economic trends.

Reconciliation is the process of comparing two sets of records to ensure they are accurate and in agreement.

• Reconciliation involves comparing financial records, such as bank statements and general ledger accounts, to identify discrepancies.

• It helps in identifying errors, fraud, or missing transactions.

• Reconciliation ensures the accuracy and integrity of financial data.

• Examples include bank reconciliation, where bank statements are compared to cash book records, and intercompa...read more

Marginal costing is a costing technique where only variable costs are considered for decision making.

• Marginal costing helps in determining the contribution margin of a product or service.

• Fixed costs are not considered in marginal costing as they are not affected by changes in production or sales.

• It is useful in making short-term decisions such as pricing, make or buy decisions, and product mix decisions.

• Example: A company wants to introduce a new product line and wants to kno...read more

Geocoding functionality allows for accurate mapping of additional place of business.

• Geocoding functionality uses addresses to determine latitude and longitude coordinates.

• It helps in accurately pinpointing the location of the additional place of business on a map.

• Examples of geocoding services include Google Maps Geocoding API and OpenCage Geocoding API.

Rules of accounting are the guidelines and principles that govern the preparation of financial statements.

• Accounting equation must always be in balance: Assets = Liabilities + Equity

• Revenue recognition principle: Revenue should be recognized when it is earned, not when cash is received

• Matching principle: Expenses should be matched with revenues in the period they are incurred

• Conservatism principle: Be conservative in recording transactions, anticipate losses but not gains

• Cons...read more

The 3 financial statements are Income Statement, Balance Sheet, and Cash Flow Statement.

• Income Statement shows a company's revenues and expenses over a period of time.

• Balance Sheet provides a snapshot of a company's financial position at a specific point in time.

• Cash Flow Statement shows how changes in balance sheet accounts and income affect cash and cash equivalents.

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.

• It is recognized as revenue in the income statement when the goods or services are provided.

• Example: A company receives a payment for a one-year subscription in advance. The amount received is recorded as prepaid income until each month's subscription is provided.

• Prepaid income is also known as unearned income.

MHR can be calculated by subtracting your age from 220.

• MHR stands for Maximum Heart Rate.

• It is the highest number of times your heart can beat in a minute.

• To calculate MHR, subtract your age from 220.

• For example, if you are 30 years old, your MHR would be 190 (220-30).

Journal Entry on Tally and Tally Shortcuts

• Journal entry in Tally is used to record financial transactions

• Shortcut keys in Tally help in faster data entry and navigation

• Example: Ctrl + F4 to close a voucher in Tally

A finance executive is responsible for managing financial operations and ensuring the financial health of an organization.

• Overseeing financial transactions and budgets

• Preparing financial reports and statements

• Analyzing financial data and making recommendations

• Managing financial risks and investments

• Ensuring compliance with financial regulations

• Collaborating with other departments to achieve financial goals

The TDS rate for salary varies based on the income slab of the individual.

• TDS rates for salary range from 0% to 30% depending on the income slab

• For individuals earning up to Rs. 2.5 lakhs per annum, there is no TDS deduction

• For individuals earning between Rs. 2.5 lakhs to Rs. 5 lakhs per annum, the TDS rate is 5%

• For individuals earning between Rs. 5 lakhs to Rs. 10 lakhs per annum, the TDS rate is 20%

• For individuals earning above Rs. 10 lakhs per annum, the TDS rate is 30%

Accounts payable process involves recording and paying invoices from vendors for goods and services received.

• Receiving invoices from vendors

• Verifying the accuracy of the invoices

• Recording the invoices in the accounting system

• Obtaining approval for payment

• Processing payments to vendors

• Reconciling accounts payable to ensure accuracy

TDS stands for Tax Deducted at Source, which is a system where tax is deducted by the payer at the time of making payment.

• TDS is deducted by the payer at the time of making certain payments like salary, rent, commission, etc.

• The deducted amount is then deposited with the government on behalf of the payee.

• TDS rates vary based on the type of payment and the payee's status.

• TDS ensures a regular inflow of tax revenue for the government and helps in preventing tax evasion.

I solve risks by identifying them, analyzing their impact, and implementing appropriate measures to mitigate them.

• Identify potential risks through risk assessments and analysis

• Analyze the impact of each risk on the organization

• Develop and implement appropriate risk mitigation strategies

• Regularly monitor and review risk management processes

• Examples of risk mitigation strategies include insurance, diversification, and contingency planning

GSTR 1, 3B, 2B, and 2A are different types of GST returns filed by businesses in India.

• GSTR-1: Monthly return for outward supplies

• GSTR-3B: Monthly summary return for taxable supplies

• GSTR-2B: Auto-drafted input tax credit (ITC) statement

• GSTR-2A: Details of inward supplies auto-populated from GSTR-1 of supplier

GST TDS is a tax deducted at source on certain transactions under GST. It helps in ensuring tax compliance and preventing tax evasion.

• GST TDS is applicable on certain transactions like rent, commission, etc.

• The person making the payment deducts a certain percentage of the payment as TDS and deposits it with the government.

• The recipient can claim credit for the TDS deducted while filing their GST returns.

• GST TDS helps in ensuring tax compliance and preventing tax evasion.

• It al...read more

Yes, I am capable of taking up tasks independently.

• I have a proven track record of successfully completing projects on my own.

• I am self-motivated and able to prioritize tasks effectively.

• I have strong problem-solving skills which allow me to handle challenges independently.

The golden rules of accounting are basic principles that guide the recording of financial transactions.

• The first golden rule is the Personal Account rule, which states that debit the receiver and credit the giver.

• The second golden rule is the Real Account rule, which states that debit what comes in and credit what goes out.

• The third golden rule is the Nominal Account rule, which states that debit all expenses and losses and credit all incomes and gains.

Provision for bad debts is an estimated amount set aside by a company to cover potential losses from customers who may not pay their debts.

• Provision for bad debts is a common practice in accounting to ensure that a company's financial statements accurately reflect the potential losses from unpaid debts.

• The provision is based on an estimate of the percentage of outstanding debts that are likely to go bad.

• The provision is recorded as an expense on the income statement and as a ...read more

Accounts payable is the amount of money a company owes to its suppliers or vendors for goods or services purchased on credit.

• Accounts payable represents a company's short-term debt obligations to its suppliers.

• It is listed as a current liability on the balance sheet.

• Examples include invoices from suppliers for raw materials, utilities, or services.

• Managing accounts payable effectively is crucial for maintaining good relationships with suppliers.

Top 5 IndAS important for any company are IndAS 101, IndAS 109, IndAS 115, IndAS 116, and IndAS 102.

• IndAS 101 - Presentation of Financial Statements: Sets out the overall requirements for the presentation of financial statements, guidelines for their structure, and minimum requirements for their content.

• IndAS 109 - Financial Instruments: Addresses the classification, measurement, and recognition of financial assets and liabilities.

• IndAS 115 - Revenue from Contracts with Custo...read more

Yes, TDS is tax deductible at source.

• TDS is deducted by the payer at the time of making payment to the payee.

• It is deducted on various types of income such as salary, interest, commission, etc.

• The deducted TDS amount is then deposited with the government.

• The payee can claim credit for the TDS amount deducted while filing their income tax return.

GST stands for Goods and Services Tax, a value-added tax levied on the supply of goods and services in India.

• GST was implemented in India on July 1, 2017.

• It replaced multiple indirect taxes like VAT, service tax, excise duty, etc.

• GST has 4 tax slabs - 5%, 12%, 18%, and 28%.

• It is a destination-based tax system, meaning the tax is collected by the state where the goods or services are consumed.

• GST has simplified the tax structure and made it easier for businesses to comply with...read more

In my previous organization, the finance process was streamlined and efficient.

• Implemented automated invoicing system which reduced errors and saved time

• Conducted regular audits to ensure compliance with financial regulations

• Collaborated with cross-functional teams to develop and monitor budgets

• Maintained accurate financial records and generated reports for management

• Managed accounts payable and receivable, including timely payments and collections

Credit sales are recorded by debiting accounts receivable and crediting sales revenue.

• Debit accounts receivable to increase the amount owed by customers

• Credit sales revenue to recognize the revenue generated from the sale

• Example: Debit Accounts Receivable $1,000, Credit Sales Revenue $1,000

Purchase entry involves recording the purchase of goods or services in the accounting system.

• Debit the Purchases account for the cost of the goods or services purchased

• Credit the Accounts Payable account if the purchase is made on credit

• If the purchase is made in cash, credit the Cash account

• Include details such as date, vendor name, invoice number, and amount in the entry

Debit and credit are the two sides of an accounting transaction that record the movement of money in and out of an account.

• Debit refers to the left side of an account and represents an increase in assets or a decrease in liabilities or equity.

• Credit refers to the right side of an account and represents a decrease in assets or an increase in liabilities or equity.

• Every transaction has an equal debit and credit amount to maintain the balance of the accounting equation.

• For examp...read more

Ind AS is a set of accounting standards that are converged with International Financial Reporting Standards (IFRS).

• Ind AS stands for Indian Accounting Standards.

• It is applicable to certain class of companies as per the Companies Act, 2013.

• Ind AS aims to bring transparency, comparability, and reliability in financial reporting.

• It aligns Indian accounting practices with global standards.

• Ind AS covers various aspects such as recognition, measurement, presentation, and disclosure...read more