100+ 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.

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.

Depreciation methods include straight-line, declining balance, sum-of-the-years' digits, and units of production.

• Straight-line method charges an equal amount of depreciation each year.

• Declining balance method charges a higher rate of depreciation in the early years of an asset's life.

• Sum-of-the-years' digits method charges a higher amount of depreciation in the early years of an asset's life.

• Units of production method charges depreciation based on the actual usage of the asse...read more

The role of an accounts executive is to manage financial transactions, prepare financial reports, and ensure compliance with accounting standards.

• Managing financial transactions

• Preparing financial reports

• Ensuring compliance with accounting standards

• Maintaining accurate financial records

• Assisting with budgeting and forecasting

• Analyzing financial data to identify trends and opportunities

• Communicating financial information to stakeholders

• Collaborating with other departments to e...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

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

Yes, I can efficiently perform Accounts Payable bill posting for an entire year with accuracy and attention to detail.

• Familiar with accounting software like QuickBooks or SAP for bill posting.

• Experience in managing vendor invoices and ensuring timely payments.

• Ability to reconcile accounts and resolve discrepancies, e.g., matching invoices with purchase orders.

• Knowledge of accounting principles to maintain accurate financial records.

• Proficient in preparing monthly reports to t...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

Yes, I am familiar with Goods and Services Tax (GST), a comprehensive tax on the supply of goods and services.

• GST is a single tax system that replaces multiple indirect taxes like VAT and service tax.

• It is categorized into three types: CGST (Central GST), SGST (State GST), and IGST (Integrated GST).

• For example, if a product is sold for $100, and the GST rate is 18%, the total price would be $118.

• Businesses must register for GST if their turnover exceeds a certain threshold, w...read more

I expect a competitive salary based on my qualifications, experience, and the responsibilities of the role.

• I am looking for a salary that reflects my skills and expertise in the field of accounts and finance.

• I would like to be compensated fairly for the responsibilities and tasks associated with the position.

• Considering my experience and the market standards, I expect a salary in the range of X to Y.

• I am open to negotiation and would appreciate a comprehensive benefits packag...read more

I possess a strong understanding of GST and TDS compliance regulations, ensuring accurate financial reporting.

• GST (Goods and Services Tax) is a single tax on the supply of goods and services, replacing multiple indirect taxes.

• TDS (Tax Deducted at Source) is a means of collecting income tax in India, where tax is deducted at the source of income.

• For GST compliance, businesses must register, file returns, and maintain proper documentation of transactions.

• Example: A business mus...read more

Prepaid expenses are future expenses paid in advance, while accounts payable are obligations to pay for goods/services received.

• Prepaid expenses are recorded as assets until they are used, e.g., insurance premiums paid for the year.

• Accounts payable represent short-term liabilities, e.g., unpaid invoices from suppliers.

• Prepaid expenses decrease over time as the service is consumed, while accounts payable increase until settled.

• Both are crucial for cash flow management and fina...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

Bank Reconciliation Statements (BRS) are typically prepared monthly to ensure accurate financial records.

• Frequency: Monthly preparation is standard for most businesses.

• Example: A company reconciles its bank statement at the end of each month to match its cash book.

• Purpose: Helps identify discrepancies between bank records and company records.

• Example: If a check is recorded in the cash book but not yet cleared by the bank, it will show as a difference.

• Best Practice: Some busin...read more

I aspire to work in financial analysis, focusing on budgeting, forecasting, and strategic planning to drive business growth.

• Financial Analyst: Analyzing financial data to guide investment decisions.

• Budgeting: Developing and managing budgets to optimize resource allocation.

• Forecasting: Predicting future financial trends based on historical data.

• Strategic Planning: Collaborating with management to align financial goals with business objectives.

• Reporting: Preparing detailed fina...read more

Efficiently managing high-value and high-volume invoice payments requires streamlined processes and robust technology.

• Implement automated invoicing systems to reduce manual errors and speed up processing.

• Utilize electronic payment methods like ACH transfers or credit cards for faster transactions.

• Establish clear approval workflows to expedite high-value invoice approvals.

• Regularly reconcile accounts to ensure timely payments and avoid discrepancies.

• Leverage data analytics to ...read more

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

ERP Lighthouse is an integrated software solution designed for managing business processes and enhancing operational efficiency.

• Comprehensive Modules: ERP Lighthouse includes modules for finance, inventory, HR, and sales, allowing for streamlined operations across departments.

• Real-Time Data Access: Users can access real-time data analytics, enabling informed decision-making and improved forecasting.

• Customizable Dashboards: The software offers customizable dashboards that prov...read more

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

Invoices are essential documents in business transactions, detailing goods/services provided and payment terms.

• 1. Standard Invoice: The most common type, used for regular sales transactions. Example: A monthly bill from a supplier.

• 2. Proforma Invoice: A preliminary bill of sale sent to buyers before the actual sale occurs. Example: A quote for a custom order.

• 3. Commercial Invoice: Used for international trade, detailing the transaction for customs. Example: An invoice for goo...read more

GST 2A reflects inward supplies, while 2B shows eligible ITC after adjustments for mismatches and returns.

• GST 2A is auto-generated from suppliers' GSTR-1, showing all inward supplies.

• GST 2B is a static statement reflecting eligible ITC after considering mismatches.

• For example, if a supplier files GSTR-1 late, 2A may show the supply, but 2B won't include it until it's reconciled.

• 2B helps taxpayers plan their ITC claims more accurately, as it reflects the final eligible amount.

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