60+ Accounts & Finance Manager Interview Questions and Answers

Investing in a company as a debenture holder entitles the investor to receive regular interest payments and the return of the principal amount at maturity.

• Debenture holders receive fixed interest payments from the company at regular intervals.

• The company is legally obligated to repay the principal amount to the debenture holder at the end of the debenture's term.

• Debenture holders have a higher claim on the company's assets compared to equity shareholders in case of liquidatio...read more

EPS stands for Earnings Per Share. It is a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

• EPS is calculated by dividing the company's net income by the number of outstanding shares.

• EPS is an important metric for investors as it helps them evaluate the profitability of a company and its potential for growth.

• A higher EPS indicates that a company is generating more profit per share, which is generally seen as...read more

I will gather information from various departments and historical data to prepare a comprehensive budget.

• Meet with department heads to understand their needs and expenses

• Analyze historical data to identify trends and patterns

• Consider external factors such as market conditions and industry standards

• Use budgeting software to create and track the budget

• Regularly review and adjust the budget as needed

I ensured timely payments in AP by implementing a strict payment schedule and closely monitoring payment deadlines.

• Created a payment schedule with clear deadlines

• Implemented an automated payment system to avoid manual errors

• Monitored payment deadlines closely and followed up with vendors as needed

• Maintained accurate records of payments and communicated any delays to relevant parties

To claim service tax, one needs to file service tax returns and pay the tax. Export units under STPI registration enjoy various benefits.

• To claim service tax, one needs to file service tax returns and pay the tax on the services provided.

• The service tax returns can be filed online through the ACES website.

• Export units under STPI registration enjoy benefits such as exemption from payment of service tax on services used for export production.

• They also enjoy exemption from payme...read more

I identify errors by reviewing financial records, analyzing data, and collaborating with team members to rectify discrepancies.

• Reviewing financial statements and records for inaccuracies

• Analyzing data to identify discrepancies

• Collaborating with team members to rectify errors

• Implementing controls to prevent future errors

• Conducting regular audits to ensure accuracy

I will address the audit observations promptly, provide necessary information to auditors, and work collaboratively to resolve any issues.

• Acknowledge the audit observation and understand the concerns raised

• Provide all necessary information and documentation to auditors in a timely manner

• Collaborate with auditors to address the issues and implement corrective actions

• Regularly communicate with auditors to provide updates on progress and address any additional concerns

• Ensure com...read more

Liabilities are what a company owes, while assets are what a company owns.

• Liabilities are debts or obligations that a company owes to others, such as loans, accounts payable, or taxes.

• Assets are resources that a company owns and can use to generate revenue, such as cash, inventory, or property.

• Liabilities are listed on the balance sheet as a negative value, while assets are listed as a positive value.

• The difference between assets and liabilities is known as equity or net wort...read more

Capital budgeting refers to the process of planning and evaluating long-term investment decisions.

• It involves analyzing potential investment opportunities and determining their financial viability.

• The goal is to allocate financial resources to projects that will generate the highest return on investment.

• Methods used in capital budgeting include net present value (NPV), internal rate of return (IRR), and payback period.

• For example, a company may use capital budgeting to decide...read more

To make financial statements with transactions, gather all relevant financial data and organize it into the appropriate financial statement format.

• Collect all financial transactions, including income, expenses, assets, and liabilities.

• Categorize the transactions into appropriate accounts, such as revenue, cost of goods sold, operating expenses, etc.

• Prepare the income statement by summarizing revenue and expenses to calculate net income or loss.

• Create the balance sheet by list...read more

To draft an IT assessment questionnaire, consider the purpose, target audience, and relevant areas of assessment.

• Identify the purpose of the assessment questionnaire, such as evaluating IT infrastructure, security, or software systems.

• Determine the target audience, whether it is internal staff, external vendors, or clients.

• Include questions related to IT governance, network infrastructure, data security, software applications, and IT support.

• Ensure the questions are clear, co...read more

The question asks about accounting standards and provisions for NBFCs.

• Ind AS 109 deals with financial instruments and their classification, measurement, and impairment.

• Ind AS 116 deals with accounting for leases.

• EIR stands for Effective Interest Rate and is used to calculate interest expense or income over the life of a financial instrument.

• ECL stands for Expected Credit Loss and is used to estimate the amount of credit losses that a company may incur.

• Income tax provision ref...read more

EBIT stands for Earnings Before Interest and Taxes.

• EBIT is a financial metric that measures a company's profitability before deducting interest and taxes.

• It is calculated by subtracting operating expenses (excluding interest and taxes) from total revenue.

• EBIT helps in evaluating a company's operational performance and comparing it with other companies in the same industry.

• It is also known as operating income or operating profit.

• Example: If a company has a total revenue of $1 ...read more

I have 10 years of experience in the accounts and finance field.

• 10 years of experience in accounts and finance

• Managed financial reporting and analysis

• Handled budgeting and forecasting

• Experience with financial audits

• Proficient in financial software and tools

The accounts & finance industry offers ample growth opportunities due to increasing demand for financial expertise in various sectors.

• Rapidly evolving technology creating new roles and opportunities

• Globalization leading to increased complexity in financial transactions

• Demand for specialized skills like data analysis and risk management

• Opportunities for career advancement through certifications and further education

• Potential for leadership roles in finance departments of large...read more

Assuring long service requires a positive work environment, fair compensation, growth opportunities, and recognition.

• Create a positive work environment that fosters collaboration and open communication.

• Offer fair compensation and benefits packages to attract and retain top talent.

• Provide growth opportunities through training, mentorship, and career advancement.

• Recognize and reward employees for their contributions and achievements.

• Conduct regular employee engagement surveys t...read more

Working capital refers to the funds available for a company's day-to-day operations and is calculated by subtracting current liabilities from current assets.

• Working capital is the measure of a company's liquidity and ability to meet short-term obligations.

• It represents the difference between a company's current assets (cash, accounts receivable, inventory) and current liabilities (accounts payable, short-term debt).

• Positive working capital indicates that a company has enough ...read more

The journal entry for a service with TDS includes debiting the TDS receivable and crediting the service revenue.

• Debit TDS receivable account

• Credit service revenue account

• TDS receivable represents the amount withheld for tax purposes

• Service revenue represents the income earned from providing the service

External audit control checks are procedures implemented by external auditors to ensure accuracy and reliability of financial statements.

• External auditors review internal controls to assess their effectiveness in preventing and detecting errors or fraud.

• They perform tests of transactions and account balances to verify the accuracy of financial information.

• Auditors also evaluate management's estimates and judgments to ensure they are reasonable and consistent with accounting s...read more

Accounting is the process of recording, classifying, and summarizing financial transactions to provide useful information to stakeholders.

• The golden rules of accounting are: Debit what comes in, Credit what goes out; Debit expenses and losses, Credit income and gains; Debit assets, Credit liabilities and equity.

• Accounting helps businesses keep track of their financial transactions and make informed decisions.

• There are different types of accounts, such as asset accounts, liabi...read more

Filing annual return in GST involves submitting details of income, purchases, and tax paid for the financial year.

• Login to GST portal and select the 'Annual Return' tab

• Fill in details such as turnover, tax paid, input tax credit, etc.

• Verify the details and submit the return

• Pay any additional tax if required

• File the return using digital signature or EVC

• Keep a copy of the filed return for future reference

The Purchases System, Returns and VAT & other taxes system data, and revenues are all important components of the financial management process.

• Purchases System involves recording all purchases made by the company, including inventory and supplies.

• Returns and VAT & other taxes system data tracks returns, calculates VAT, and ensures compliance with tax regulations.

• Revenues represent the income generated by the company through sales of goods or services.

• Analyzing these systems h...read more

Revenue is accounted for by recognizing and recording income earned from the sale of goods or services.

• Revenue is recognized when it is earned, not when the payment is received.

• It is recorded in the income statement as a credit entry.

• Different methods can be used to account for revenue, such as accrual accounting or cash accounting.

• Revenue can be recognized over time or at a specific point in time, depending on the nature of the transaction.

• Examples of revenue include sales r...read more

Book closure process involves finalizing financial statements for a specific period.

• Reviewing all financial transactions for accuracy and completeness

• Adjusting entries for accruals, prepayments, and depreciation

• Preparing financial statements like balance sheet, income statement, and cash flow statement

• Closing temporary accounts like revenue and expense accounts

• Ensuring compliance with accounting standards and regulations

Contingent liabilities are potential liabilities that may arise in the future, such as lawsuits or warranties.

• Identify and assess the likelihood of the contingent liability occurring

• Estimate the potential financial impact of the liability

• Disclose the contingent liability in the financial statements

• Monitor and reassess the liability regularly

Income tax return is a form where taxpayers declare their taxable income, deductions, and tax payments.

• Income tax return is a document filed with the tax authorities by individuals and businesses to report their income and calculate the amount of tax owed.

• It includes details of income sources, deductions, credits, and tax payments made throughout the year.

• Filing income tax return is mandatory for individuals and businesses meeting certain income thresholds.

• The deadline for fi...read more

Errors in accounts can be checked through various methods and techniques.

• Reconciling bank statements with accounting records

• Reviewing financial statements for inconsistencies

• Performing regular audits and internal controls

• Verifying accuracy of transactions and calculations

• Analyzing variances and investigating discrepancies

• Using accounting software and tools to identify errors

• Seeking professional advice and consultation when needed

Finance manager is expected to oversee financial activities, provide strategic financial guidance, ensure compliance with regulations, and optimize financial performance.

• Oversee financial activities such as budgeting, forecasting, and financial reporting

• Provide strategic financial guidance to senior management

• Ensure compliance with regulations and financial laws

• Optimize financial performance through analysis and recommendations

• Manage financial risks and opportunities

• Develop f...read more

TDS rate on rent is 10% for rent exceeding Rs. 2.4 lakhs per annum. Deferred tax is an accounting concept where tax liability is postponed to future periods.

• TDS rate on rent is 10% for rent exceeding Rs. 2.4 lakhs per annum

• TDS is Tax Deducted at Source, which means tax is deducted by the payer at the time of making payment

• Deferred tax is an accounting concept where tax liability is postponed to future periods

• It arises due to temporary differences between accounting and tax ru...read more

I will manage site finances by implementing effective budgeting, monitoring expenses, and optimizing financial processes.

• Developing and implementing a comprehensive budgeting system

• Monitoring expenses and ensuring they align with the budget

• Analyzing financial data to identify areas for cost optimization

• Implementing financial controls and procedures to minimize risks

• Collaborating with project managers to forecast financial needs

• Preparing financial reports and presenting them t...read more

Trade discount is a reduction in the list price of a product offered to a customer, while cash discount is a reduction in the invoice price for prompt payment.

• Trade discount is given to encourage bulk purchases or to reward loyal customers.

• Cash discount is offered to incentivize customers to pay their invoices early.

• Trade discount is usually a percentage of the list price, while cash discount is a percentage of the invoice price.

• Trade discount is deducted before any taxes or ...read more

To handle a team of boys and girls, it is important to create a positive and inclusive work environment.

• Encourage open communication and active listening

• Set clear expectations and goals

• Provide equal opportunities for growth and development

• Address any conflicts or issues promptly and fairly

• Celebrate team successes and recognize individual contributions

Maintaining cash flow for a month involves careful budgeting, monitoring expenses, invoicing promptly, and managing accounts receivable.

• Create a detailed budget for the month, including all expected income and expenses.

• Monitor expenses closely and look for areas where costs can be reduced.

• Invoice customers promptly and follow up on any overdue payments to ensure timely cash inflow.

• Negotiate favorable payment terms with suppliers to manage accounts payable effectively.

• Consider...read more

No, insurance is not an investment.

• Insurance is a risk management tool that provides financial protection against unforeseen events.

• Investment, on the other hand, is the act of putting money into something with the expectation of earning a profit.

• While insurance may have a return on investment in the form of claims paid out, it is not considered a traditional investment.

• For example, buying a life insurance policy is not an investment in the same way that buying stocks or real...read more

Internal audit is necessary to ensure compliance, identify risks, and improve operational efficiency.

• Ensures compliance with laws, regulations, and internal policies

• Identifies and mitigates risks to the organization

• Improves operational efficiency and effectiveness

• Provides assurance to stakeholders

• Helps in detecting and preventing fraud

• Evaluates the effectiveness of internal controls

• Assists in decision-making and strategic planning

• Enhances transparency and accountability

• Suppor...read more

In sales, journal entries are made to record revenue and related expenses.

• Debit Accounts Receivable and credit Sales Revenue for the amount of the sale

• Debit Cost of Goods Sold and credit Inventory for the cost of goods sold

• Debit Sales Returns and Allowances and credit Accounts Receivable for any returns or allowances

• Debit Sales Discounts and credit Accounts Receivable for any discounts given to customers

A report that shows the outstanding balances of customers or vendors based on the age of the invoice.

• Aging report categorizes the outstanding balances into different time periods such as 30, 60, 90 or more days past due.

• It helps in identifying the customers or vendors who have not paid their invoices on time.

• It also helps in determining the cash flow and potential bad debts.

• For example, an aging report for accounts receivable will show the outstanding balances of customers an...read more

My letter writing skills are strong and professional.

• I have experience drafting formal letters, emails, and reports in my previous roles.

• I pay attention to detail, grammar, and formatting to ensure clear and effective communication.

• I am able to tailor my writing style to suit the audience and purpose of the communication.

• I have received positive feedback on my written communication skills from colleagues and supervisors.

Transactions impact the balance sheet (BS) and profit and loss statement (PL) by affecting assets, liabilities, income, and expenses.

• Transactions increase or decrease assets, such as cash, accounts receivable, and inventory.

• Transactions increase or decrease liabilities, such as accounts payable and loans.

• Transactions generate income, such as sales revenue or interest income.

• Transactions incur expenses, such as salaries, rent, and utilities.

• The net effect of transactions on th...read more

TDS stands for Tax Deducted at Source, 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 taxes to the government and helps in preventing tax evasion.

• Example: If an employer ...read more

I maintain open communication, provide necessary documentation, and ensure compliance with regulations.

• Maintain open communication with auditors to address any queries or concerns

• Provide necessary documentation and information requested by auditors

• Ensure compliance with regulations and internal controls

• Address any findings or discrepancies identified by auditors promptly

• Collaborate with auditors to improve processes and controls

Negative ledgers are accounts that have a negative balance due to overpayments or credits exceeding debits.

• Negative ledgers occur when the total credits in an account exceed the total debits.

• They can result from overpayments, refunds, or returns.

• Negative ledgers indicate that the account holder has a credit balance.

• They are often found in accounts receivable or customer credit accounts.

• Negative ledgers can be resolved by applying the credit balance to future transactions or i...read more

Tax deducted at source (TDS) is a system where tax is deducted by the payer at the time of making payment to the payee.

• TDS is applicable on various types of payments such as salary, interest, rent, commission, etc.

• The deducted tax is required to be deposited to the government by the deductor.

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

• TDS rates vary depending on the nature of payment and the tax status of the payee.

• Failure to de...read more

GSTR9C is an annual reconciliation statement to be filed by taxpayers with a turnover exceeding a specified limit.

• GSTR9C is a reconciliation statement between the annual return GSTR9 and the audited financial statements of the taxpayer.

• It is mandatory for taxpayers with an annual turnover exceeding a specified limit to file GSTR9C.

• GSTR1 is the monthly or quarterly return that should be filed by regular taxpayers.

• GSTR9 is the annual return that should be filed by all regular t...read more

Tax due dates and calculations are crucial for financial planning and compliance.

• Tax due dates vary depending on the type of tax and jurisdiction

• Calculations involve determining taxable income, applying tax rates, and deductions

• Penalties may apply for late payment or filing

• Software tools like QuickBooks or TurboTax can help with calculations

Handling GST compliance involves understanding regulations, timely filing of returns, maintaining accurate records, and conducting regular audits.

• Understand GST regulations and stay updated on any changes

• Ensure timely filing of GST returns to avoid penalties

• Maintain accurate records of all transactions for easy audit trail

• Conduct regular internal audits to identify and rectify any compliance issues

• Seek professional help if needed to ensure full compliance

I am currently located in New York City.

• Currently residing in New York City

• Working in the financial district

• Living in a high-rise apartment building