40+ Accounts Associate Interview Questions and Answers

Depreciation is the systematic allocation of the cost of an asset over its useful life.

• Depreciation is a method used in accounting to allocate the cost of an asset over its useful life.

• It represents the decrease in value of an asset due to wear and tear, obsolescence, or other factors.

• Depreciation expense is recorded on the income statement and reduces the net income of a company.

• Common methods of calculating depreciation include straight-line, declining balance, and units of...read more

Accounts receivable are amounts owed by customers for goods or services already delivered. Bills receivable are written promises to pay at a future date.

• Accounts receivable are generated from sales transactions.

• Bills receivable are generated from loan transactions.

• Accounts receivable are short-term and due within a year.

• Bills receivable are long-term and due after a year.

• Accounts receivable are unsecured debts.

• Bills receivable are secured debts.

• Examples of accounts receivable...read more

The three golden rules in accounting are the rules of debit and credit, which govern the recording of financial transactions.

• The first golden rule is the rule of debit and credit, which states that for every debit entry, there must be a corresponding credit entry of equal amount.

• The second golden rule is the rule of personal accounts, which states that debit the receiver and credit the giver.

• The third golden rule is the rule of real accounts, which states that debit what come...read more

GSTR2B is a draft statement generated for recipients based on GSTR1 filed by suppliers, while GSTR2A is an auto-populated statement reflecting inward supplies.

• GSTR2B is a draft statement for recipients based on GSTR1 filed by suppliers

• GSTR2A is an auto-populated statement reflecting inward supplies

• GST return due dates vary based on the type of taxpayer and the turnover

• GSTR9 is an annual return to be filed by regular taxpayers

• GSTR9C is a reconciliation statement to be filed al...read more

Yes, I am comfortable making phone calls to customers.

• I have experience in customer service and have made phone calls to customers in the past.

• I am confident in my communication skills and can handle any inquiries or concerns over the phone.

• I understand the importance of maintaining a professional and friendly demeanor during phone calls.

• I am comfortable with making outbound calls to follow up on payments or resolve any billing issues.

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information for decision-making.

• Accounting involves keeping track of financial transactions

• It includes classifying and summarizing financial data

• The information is used for decision-making

• Advanced Excel skills like pivot tables and vlook up are useful in accounting

• Pivot tables can be used to summarize and analyze large amounts of data

• Vlook up can be used to search for specif...read more

Depreciation is not charged on land because it does not wear out or lose value over time like other assets.

• Land is considered a non-depreciable asset because it has an indefinite useful life.

• Unlike buildings or machinery, land does not deteriorate or get used up.

• For example, a plot of land can appreciate in value due to factors like location and development.

• In accounting, land is recorded at its purchase price and remains on the balance sheet at that value.

I have a variety of interests that keep me engaged and motivated.

• I enjoy reading books on various topics, from fiction to self-help.

• I am passionate about fitness and enjoy trying out new workout routines.

• I love traveling and exploring new cultures and cuisines.

• I am an avid music listener and enjoy attending concerts and festivals.

• I also enjoy volunteering and giving back to my community.

The Golden rules of accounting are basic principles to maintain accurate financial records.

• The first rule is the Debit and Credit rule, which states that for every debit entry, there must be a corresponding credit entry.

• The second rule is the Real Account rule, which states that all assets and liabilities have a debit and credit balance respectively.

• The third rule is the Personal Account rule, which states that all transactions involving individuals or organizations must be r...read more

Five common financial ratios are: current ratio, quick ratio, debt-to-equity ratio, return on equity, and gross profit margin.

• Current ratio: Current assets divided by current liabilities. Example: Current assets of $100,000 and current liabilities of $50,000 would result in a current ratio of 2:1.

• Quick ratio: (Current assets - inventory) divided by current liabilities. Example: If current assets are $100,000, inventory is $20,000, and current liabilities are $50,000, the quic...read more

GST stands for Goods and Services Tax. GSTR returns are filed monthly, quarterly or annually depending on the turnover.

• GST is a tax reform implemented in India to replace multiple indirect taxes.

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

• GSTR returns are filed to report the details of sales, purchases, and tax paid.

• The due date for GSTR returns varies based on the type of return and turnover of the business.

• For example...read more

Bookkeeping is the process of recording financial transactions and maintaining financial records for a business.

• Bookkeeping involves recording all financial transactions of a business, such as sales, purchases, and payments.

• It helps in tracking income and expenses, monitoring cash flow, and preparing financial statements.

• Accurate bookkeeping is essential for tax compliance and making informed business decisions.

• Common bookkeeping methods include single-entry and double-entry ...read more

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

• It involves identifying and resolving any discrepancies between the two sets of records.

• Common examples include bank statement reconciliation, inventory reconciliation, and accounts receivable reconciliation.

• Reconciliation is important for ensuring accurate financial reporting and identifying any errors or fraud.

• It can be done manually or with the help of software tools.

• The process ...read more

Fictitious assets are non-tangible assets that do not have intrinsic value but are recorded on the balance sheet.

• Fictitious assets include items like goodwill, preliminary expenses, and deferred revenue.

• Goodwill arises when a company acquires another for more than its fair market value.

• Preliminary expenses are costs incurred before a business starts operations, like legal fees.

• Deferred revenue represents payments received for services not yet delivered, like subscription fees...read more

Amortization is the gradual reduction of a debt or asset's value over time through scheduled payments or depreciation.

• Amortization applies to loans, where borrowers pay back principal and interest over time.

• For example, a mortgage is amortized over 15 or 30 years with monthly payments.

• In accounting, amortization refers to spreading the cost of an intangible asset over its useful life.

• An example is a patent, which may be amortized over its legal life of 20 years.

Depreciation is the allocation of the cost of an asset over its useful life, amortization is the allocation of the cost of intangible assets over their useful life, and depression is a mental health condition.

• Depreciation is used for tangible assets like buildings and machinery, amortization is used for intangible assets like patents and copyrights, and depression is a mental health disorder.

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

Types of depreciation include straight-line, double declining balance, units of production, and sum of years digits.

• Straight-line depreciation spreads the cost evenly over the useful life of the asset.

• Double declining balance method accelerates depreciation in the early years of an asset's life.

• Units of production method depreciates based on the actual usage of the asset.

• Sum of years digits method accelerates depreciation but in a more gradual manner.

Accrued income refers to revenue that has been earned but not yet received.

• Accrued income is recorded as a debit to an asset account and a credit to a revenue account.

• Examples include interest income earned but not yet received, rent income earned but not yet received, etc.

Accrual basis of accounting recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Revenue is recorded when it is earned, not necessarily when cash is received

• Expenses are recorded when they are incurred, not necessarily when they are paid

• Provides a more accurate representation of a company's financial position and performance

• Required by GAAP for most businesses

Schedule III of the Companies Act, 2013 has been recently amended to include new disclosure requirements for financial statements.

• Recent changes in Schedule III include additional disclosures related to lease accounting under Ind AS 116.

• There are new requirements for reporting related party transactions in financial statements.

• Changes have been made to the format and presentation of financial statements to align with the latest accounting standards.

• Disclosure requirements for...read more

There is no fixed number of heads in income tax as it varies based on the organizational structure.

• The number of heads in income tax varies based on the organizational structure and hierarchy.

• There are different levels of officers in income tax such as Income Tax Officer, Assistant Commissioner, Commissioner, etc.

• The number of heads also depends on the workload and jurisdiction of the income tax office.

• It is not possible to give a specific number of heads in income tax withou...read more

IFRS stands for International Financial Reporting Standards.

• IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB).

• It is used by companies to prepare and present their financial statements.

• IFRS is designed to provide a common language for business affairs so that company accounts are understandable and comparable across international boundaries.

• Examples of IFRS include IFRS 9 (Financial Instruments), IFRS 15 (Revenue from Contra...read more

HRA for government employees is a component of salary to cover housing expenses, varying by location and pay scale.

• HRA stands for House Rent Allowance, a part of salary for housing costs.

• It is typically a percentage of the basic salary, often ranging from 30% to 50%.

• HRA is exempt from income tax under certain conditions, providing tax relief.

• The amount of HRA depends on the city of residence; metro cities usually have higher allowances.

• For example, a government employee in Mu...read more

The golden rule of accounts is a fundamental principle guiding the recording of financial transactions.

• 1. Debit what comes in, credit what goes out. Example: When cash is received, debit cash account.

• 2. Debit all expenses and losses, credit all incomes and gains. Example: When a service is sold, credit the revenue account.

• 3. For personal accounts, debit the receiver and credit the giver. Example: If you owe money to a supplier, debit the supplier's account.

Internal Audit is a process where an organization's financial and operational processes are reviewed by an independent party.

• Internal Audit helps ensure compliance with regulations and identifies areas for improvement.

• It provides assurance to stakeholders that the organization's operations are being conducted effectively and efficiently.

• Examples of internal audit activities include reviewing financial statements, assessing internal controls, and investigating fraud.

• Internal A...read more

An invoice is a document requesting payment for goods or services, with various types serving different purposes.

• 1. Standard Invoice: A detailed bill for goods/services provided, e.g., a monthly utility bill.

• 2. Proforma Invoice: A preliminary bill sent before goods/services are delivered, e.g., a quote for a construction project.

• 3. Credit Invoice: Issued to correct an error or provide a refund, e.g., returning a defective product.

• 4. Debit Invoice: Used to request additional p...read more

GST is calculated by multiplying the taxable value of goods or services by the applicable GST rate.

• Determine the taxable value of the goods or services

• Identify the applicable GST rate (5%, 12%, 18%, or 28%)

• Multiply the taxable value by the applicable GST rate to get the GST amount

• Add the GST amount to the taxable value to get the total amount payable