20+ Accounts Process Executive Interview Questions and Answers

The steps in the cash process involve receiving cash, counting and verifying it, recording the transaction, and depositing the cash in the bank.

• Receive cash from customers or clients

• Count and verify the cash to ensure accuracy

• Record the transaction in the accounting system

• Prepare a deposit slip and deposit the cash in the bank

• Reconcile the cash transactions with the accounting records

The journal entry for purchase returns involves debiting the accounts payable account and crediting the inventory account.

• Debit the accounts payable account to reduce the amount owed to the supplier

• Credit the inventory account to reduce the inventory on hand

• Example: Debit Accounts Payable $500, Credit Inventory $500

The journal entry for a purchase order involves debiting the inventory account and crediting the accounts payable account.

• Debit the inventory account for the cost of the items purchased

• Credit the accounts payable account for the same amount

• Example: Debit Inventory $1,000, Credit Accounts Payable $1,000

Return on investment (ROI) is a financial metric used to evaluate the efficiency or profitability of an investment.

• ROI = (Net Profit / Cost of Investment) x 100

• Net Profit is the total revenue generated from the investment minus the total costs incurred.

• Cost of Investment includes all expenses related to the investment, such as purchase price, maintenance costs, and operating expenses.

• ROI is usually expressed as a percentage, with a higher percentage indicating a more profitab...read more

The formula for Personal account is: Personal account = Capital + Liabilities

• Personal account represents the owner's equity in the business

• It includes the owner's investments (capital) and any liabilities owed by the owner to the business

• Formula: Personal account = Capital + Liabilities

• Example: If the owner invests $10,000 in the business and owes $2,000 to the business, the Personal account would be $12,000 ($10,000 + $2,000)

The formula for Nominal account is Opening balance + Total income - Total expenses = Closing balance

• Nominal account formula is used to calculate the closing balance of an account

• It is calculated by adding the opening balance to the total income and then subtracting the total expenses

• Formula: Opening balance + Total income - Total expenses = Closing balance

• Example: If the opening balance of a nominal account is $1000, total income is $500 and total expenses are $300, then the ...read more

The formula for Real account is Opening balance + Total debits - Total credits = Closing balance

• Real account represents assets, liabilities, and owner's equity

• Formula: Opening balance + Total debits - Total credits = Closing balance

• Example: If the opening balance of a real account is $10,000 and total debits are $5,000 while total credits are $3,000, the closing balance would be $12,000

A process executive is responsible for overseeing and managing the various processes within a company to ensure efficiency and effectiveness.

• Overseeing and managing various processes within the company

• Ensuring efficiency and effectiveness in the processes

• Identifying areas for improvement and implementing changes

• Monitoring and analyzing process performance

• Collaborating with other team members to streamline processes

Accounts refer to financial records of a business. Journal is where transactions are initially recorded. Ledger is a collection of accounts. Balance sheet shows assets, liabilities, and equity.

• Accounts are financial records that track the financial activities of a business.

• Journal is where transactions are initially recorded before being transferred to the ledger.

• Ledger is a collection of accounts that shows the financial position of a business.

• Balance sheet is a financial st...read more

Order to cash is the process of receiving and fulfilling customer orders, invoicing, and receiving payment.

• Order to cash involves receiving customer orders

• Processing the orders

• Invoicing the customer

• Receiving payment for the order

• It is a key process in the accounts receivable cycle

A sales invoice is a document issued by a seller to a buyer, detailing the products or services sold, the quantity, price, and payment terms.

• Sales invoice is a legal document that serves as proof of a transaction between a seller and a buyer.

• It includes details such as the date of the transaction, invoice number, payment terms, and any applicable taxes.

• The invoice also lists the products or services sold, along with their quantities and prices.

• It is used for accounting and re...read more

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

• Recording financial transactions

• Summarizing financial data in financial statements

• Analyzing financial information to make business decisions

• Reporting financial results to stakeholders

• Ensuring compliance with financial regulations

• Examples: preparing balance sheets, income statements, cash flow statements

Yes, I am familiar with Tally for accounting, GST for taxation, and TDS for tax deduction.

• I have experience using Tally software for maintaining accounting records.

• I understand the concepts of GST (Goods and Services Tax) and its implications on business transactions.

• I am aware of TDS (Tax Deducted at Source) and its requirements for tax deduction.

• I have practical knowledge of how to handle GST and TDS compliance in accounting processes.

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

• The three golden rules of accounting are: Debit the receiver, Credit the giver; Debit what comes in, Credit what goes out; Debit all expenses and losses, Credit all incomes 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 cash ac...read more

A trial balance is a list of all the general ledger accounts contained in the ledger of a business.

• It is used to ensure that the total debits equal the total credits in the accounting records.

• It helps in detecting errors in the accounting process.

• It is prepared before the financial statements are finalized.

• Example: If the total debits in the trial balance equal the total credits, it means the accounts are balanced.

Credit note is issued by seller to buyer for refund or adjustment, while debit note is issued by buyer to seller for additional payment or adjustment.

• Credit note is issued by seller to buyer when there is an overpayment or refund due to the buyer.

• Debit note is issued by buyer to seller when there is an underpayment or additional payment due to the seller.

• Credit note reduces the amount payable by the buyer to the seller.

• Debit note increases the amount payable by the buyer to t...read more

Intangible assets are non-physical assets that have value, such as patents, trademarks, copyrights, and goodwill.

• Intangible assets lack physical substance

• They are long-term assets with no physical form

• Examples include patents, trademarks, copyrights, and goodwill

• Intangible assets are typically listed on a company's balance sheet

Loan account in accounts receivable refers to the amount of money owed to a company by a customer who has taken a loan.

• Loan account is a type of accounts receivable

• It represents the amount of money owed by a customer who has taken a loan

• The loan account is recorded as an asset on the company's balance sheet

• The company can earn interest on the loan amount

• Example: A bank has a loan account in accounts receivable for a customer who has taken a personal loan

Types of GST include CGST, SGST, IGST, and UTGST.

• CGST - Central Goods and Services Tax

• SGST - State Goods and Services Tax

• IGST - Integrated Goods and Services Tax

• UTGST - Union Territory Goods and Services Tax

GST stands for Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.

• GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

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

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

• Input tax credit can be claimed on taxes paid on input goods and services.

• GST registration is mandatory for businesses with an annual turnover abov...read more

TDS stands for Tax Deducted at Source and TCS stands for Tax Collected at Source. They are types of indirect taxes in India.

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

• TCS is collected by the seller from the buyer at the time of sale of specified goods.

• TDS rates vary based on the nature of payment, while TCS rates are fixed.

• TDS is applicable on income like salary, interest, commission, etc., while TCS is applicable on sale of goods like scrap, mine...read more

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

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

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

• Matching principle: Expenses should be recorded in the same period as the revenue they help generate

• Conservatism principle: When in doubt, choose the option that will result in lower profits or higher l...read more

Depreciation is the allocation of the cost of a tangible asset over its useful life.

• Depreciation is a non-cash expense that reduces the value of an asset over time.

• It reflects the wear and tear, obsolescence, or decrease in value of the asset.

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

• Example: A company buys a delivery truck for $50,000 with a useful life of 5 years. Using straight-line depreciation, the...read more

To prepare GSTs and transfer money to AP

• To prepare GSTs, you need to gather all the necessary financial data and calculate the applicable taxes

• Ensure that all the invoices and receipts are properly recorded and categorized

• Submit the GST returns to the tax authorities within the specified deadlines

• To transfer money to AP (Accounts Payable), you need to initiate the payment process

• Verify the accuracy of the payment details and ensure proper authorization

• Choose the appropriate p...read more

Incomplete or inaccurate information, lack of pre-authorization, coding errors, non-covered services, duplicate claims

• Incomplete or inaccurate information provided on the claim form

• Lack of pre-authorization for the services rendered

• Coding errors in the submitted claim

• Services not covered under the patient's insurance plan

• Duplicate claims submitted for the same service

TFL LIMIT refers to the maximum benefits authorized for a specific account process executive.

• TFL LIMIT is the maximum amount of benefits that can be provided to a customer or client.

• It is important for the account process executive to be aware of the TFL LIMIT in order to ensure compliance with company policies and regulations.

• Examples of TFL LIMITs could include daily withdrawal limits on a debit card or maximum reimbursement amounts for expenses.