600+ Executive Accountant Interview Questions and Answers

P2P cycle is the process of procuring goods and services from vendors. 3 way match is a process of matching invoice, purchase order and receipt.

• P2P cycle involves steps like requisition, purchase order, receipt, invoice and payment

• 3 way match ensures that the invoice matches the purchase order and receipt

• If approvals are missing for non-PO invoices, the invoice can be sent to the department head for approval or the vendor can be contacted for clarification

• Automated workflows ...read more

The file extension name created by the TDS Return software is .txt.

• The TDS Return software generates a text file with the .txt extension.

• This file contains the details of tax deducted at source (TDS) by the deductor.

• The .txt file can be opened and viewed using any text editor or spreadsheet software.

• It is commonly used for filing TDS returns with the income tax department.

The journal entry when receiving invoices

• Debit the expense account for the amount of the invoice

• Credit accounts payable for the same amount

• If there is a discount offered, credit the discount account

• If there is tax included, credit the tax payable account

The HSN code for an annual turnover of more than 1.5 cr is required for tax purposes.

• HSN code stands for Harmonized System of Nomenclature code.

• It is a code used to classify goods and services for taxation purposes.

• The specific HSN code for an annual turnover of more than 1.5 cr may vary depending on the nature of the business.

• It is important to consult the relevant tax authorities or seek professional advice to determine the correct HSN code.

Tally accounting is an ERP software used for business functionalities like accounting, finance, inventory, payroll, etc.

• Tally accounting is an ERP software

• Used by small and large businesses

• Handles accounting, finance, inventory, payroll, etc.

• Helps in managing financial transactions

• Generates financial reports

• Provides real-time data

• Increases efficiency and accuracy

• Premises in accounting refer to fixed assets shown in the balance sheet

Before approving an invoice for payment, several steps should be taken to ensure accuracy and validity.

• Verify the accuracy of the invoice details, such as the amount, date, and vendor information.

• Check if the goods or services mentioned in the invoice were actually received or provided.

• Confirm that the invoice complies with company policies and procedures.

• Ensure that all necessary approvals and supporting documentation are attached to the invoice.

• Review the payment terms and ...read more

The process to issue shares in a private limited company involves several steps.

• Determine the number of shares to be issued

• Prepare the necessary documents, including the prospectus or offer letter

• Obtain approval from the board of directors and shareholders

• File the necessary forms and documents with the regulatory authorities

• Issue the shares to the subscribers and collect the subscription money

• Update the company's share register and issue share certificates

• Comply with any addi...read more

P2P is Procure-to-Pay, a process of purchasing goods and services and paying for them. Accounts and finance are different but related.

• Golden rules of accounts are Real, Personal, Nominal, Debit what comes in, Credit what goes out.

• Examples of Real accounts are land, building, machinery. Personal accounts are accounts of individuals, firms, companies. Nominal accounts are accounts of expenses, losses, gains.

• An invoice is a document that lists the goods or services provided and ...read more

The maximum number of partners in a business depends on the type of business entity.

• For a sole proprietorship, there can only be one owner.

• For a partnership, the maximum number of partners varies by state and can range from 2 to 100.

• For a limited liability company (LLC), there is no limit on the number of members.

• For a corporation, there is no limit on the number of shareholders.

• The maximum number of partners can also be limited by the business's operating agreement or bylaws...read more

I am changing domain to explore new opportunities and challenges.

• I want to broaden my skill set and gain new experiences.

• I am looking for a more challenging role that aligns with my career goals.

• I am interested in exploring a different industry or sector.

• I want to work with a different team or company culture.

• I am seeking better work-life balance or location.

• Example: I am currently working in the IT industry, but I want to transition to finance because I have always been inte...read more

TCS is Tax Collected at Source. TAN is Tax Deduction and Collection Account Number. E-way challan is an electronic waybill for transportation of goods. SLA is Service Level Agreement. One time vendor is a vendor who is used only once for a specific transaction.

• TCS is a tax collected by the seller from the buyer at the time of sale.

• TAN is a 10-digit alphanumeric number used as an identification number for persons deducting or collecting tax at source.

• E-way challan is a documen...read more

GST is an indirect tax on the supply of goods and services in India.

• GST stands for Goods and Services Tax.

• It is a comprehensive tax levied on the supply of goods and services in India.

• It is a destination-based tax, which means that it is levied at the point of consumption.

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

• It has simplified the tax structure and made it easier for businesses to comply with tax regulations.

The entries would include debiting Insurance Expense and crediting Prepaid Insurance.

• Debit Insurance Expense for ₹1,20,000 to recognize the expense in the current period.

• Credit Prepaid Insurance for ₹1,20,000 to show the amount paid in advance for future periods.

• Adjust Prepaid Insurance each month by debiting Insurance Expense and crediting Prepaid Insurance for 1/12th of the total amount.

• At the end of the year, Prepaid Insurance will be fully expensed and Insurance Expense w...read more

The stages of the double entry system are journalizing, posting, balancing, and preparing financial statements.

• Journalizing: Recording transactions in the journal.

• Posting: Transferring the journal entries to the respective accounts in the general ledger.

• Balancing: Ensuring that the total debits equal the total credits in each account.

• Preparing financial statements: Summarizing the financial information in the form of income statements, balance sheets, and cash flow statements...read more

Reconciliation of GST involves comparing the GST amounts recorded in the books with those reported to the tax authorities.

• Ensure all GST transactions are recorded accurately in the books

• Compare the total GST amounts recorded in the books with the GST amounts reported on the GST returns filed with the tax authorities

• Investigate and rectify any discrepancies found during the reconciliation process

• Reconcile the GST accounts regularly to ensure accuracy and compliance with tax re...read more

In 5 years, I see myself as a successful Accounts Executive, having gained valuable experience and contributing to the growth of the company.

• I plan to continue learning and growing in my role as an Accounts Executive

• I hope to have taken on additional responsibilities and contributed to the success of the company

• I aim to have built strong relationships with clients and colleagues

• A balance sheet is a financial statement that shows a company's assets, liabilities, and equity at ...read more

Secondary market refers to the buying and selling of securities that have already been issued.

• It is also known as aftermarket

• Investors buy and sell securities among themselves without the involvement of the issuing company

• Examples include stock exchanges, bond markets, and futures markets

Unapplied payment is a payment received but not yet applied to a specific invoice or account, while unidentified payment is a payment received but cannot be matched to any invoice or account.

• Unapplied payment is a temporary holding account for payments that have not yet been allocated to a specific invoice or account.

• Unidentified payment is a payment that cannot be matched to any invoice or account, usually due to incorrect or incomplete information provided by the payer.

• Unap...read more

Expenses paid in next month but shown in current month provision explained.

• Expenses are recorded in the month they are incurred, not when they are paid

• Provision is made for expenses that are expected to be incurred but not yet paid

• If an expense is paid in the next month, it will still be recorded in the current month's provision

• This is done to ensure accurate financial reporting and forecasting

The journal entry for goods purchased on credit involves recording the increase in inventory and the corresponding increase in accounts payable.

• Debit the inventory account to increase it

• Credit the accounts payable account to record the liability

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

Bank Reconciliation Statement is a document that compares the bank statement with the company's records to identify any discrepancies.

• Bank Reconciliation Statement is prepared to ensure that the company's records match with the bank's records.

• It helps in identifying any errors or omissions in the company's accounting records.

• It includes comparing the bank statement balance with the company's cash book balance.

• Reconciling items may include outstanding checks, deposits in trans...read more

Debit Note is a document issued by a buyer to a seller to request a credit for overcharged or returned goods. Credit Note is a document issued by a seller to a buyer to reduce the amount owed due to overpayment or returned goods.

• Debit Note is issued by the buyer to request a credit from the seller.

• It is used when there is an overcharge or return of goods.

• Debit Note reduces the amount payable by the buyer to the seller.

• Example: A buyer receives an invoice with an incorrect amo...read more

T-codes used for running payments and finding errors in SAP.

• F110 - Automatic Payment Run

• FBZ5 - Payment Program: Error Analysis

• FBZ0 - Payment Proposal

• FBL1N - Vendor Line Items

• FBL5N - Customer Line Items

Debit represents incoming funds while credit represents outgoing funds.

• Debit is used to record an increase in assets or a decrease in liabilities or equity.

• Credit is used to record a decrease in assets or an increase in liabilities or equity.

• For example, when a company receives cash from a customer, it would debit cash and credit accounts receivable.

• Conversely, when a company pays a supplier, it would credit cash and debit accounts payable.

Quick learning is essential for growth and adaptability in any role. It involves being open-minded, proactive, and utilizing various learning techniques.

• Embrace a growth mindset and be open to new ideas and perspectives.

• Take initiative to seek out learning opportunities and resources.

• Utilize different learning techniques such as reading, attending workshops, and hands-on practice.

• Set clear goals and prioritize learning tasks to stay focused and organized.

• Reflect on the learni...read more

Functional role is executed through effective communication and collaboration among supervisors, plant manager and production manager.

• Regular meetings to discuss production targets and progress

• Clear delegation of responsibilities and tasks

• Establishment of performance metrics and regular reporting

• Open communication channels for feedback and suggestions

• Regular training and development programs for all staff

• Effective use of technology to streamline processes

• Encouragement of team...read more

I have a strong understanding of accounts and have worked in the field for 5 years.

• I have experience in managing accounts payable and receivable

• I am familiar with financial statements and budgeting

• I have worked with accounting software such as QuickBooks and Xero

• I have experience in reconciling bank statements and preparing financial reports

• I have worked with clients to resolve billing and payment issues

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 a measure of a company's liquidity and ability to meet short-term obligations.

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

• Positive working capital indicates that a c...read more

Income tax is a direct tax levied on an individual's or entity's income by the government.

• It is calculated as a percentage of the income earned by an individual or entity.

• The tax rates vary depending on the income bracket and the tax laws of the country.

• The tax collected is used by the government to fund public services and infrastructure.

• Examples of income that are subject to income tax include salaries, wages, rental income, and capital gains.

• Individuals and entities are re...read more

The process of vendor invoice booking in SAP involves several steps.

• The vendor invoice is received and verified for accuracy.

• The invoice is then entered into the SAP system.

• The system checks for any discrepancies or errors.

• The invoice is then posted and a document number is generated.

• The vendor is notified of the payment due date.

• The payment is made on the due date.

• The payment is then recorded in the SAP system.

The journal entry when goods are received is a debit to the inventory account and a credit to the accounts payable account.

• Debit inventory account

• Credit accounts payable account

• Example: Debit Inventory $10,000, Credit Accounts Payable $10,000

• The entry is made to reflect the increase in inventory and the liability owed to the supplier

Assets on the balance sheet include current assets, fixed assets, and intangible assets.

• Current assets include cash, accounts receivable, and inventory

• Fixed assets include property, plant, and equipment

• Intangible assets include patents, trademarks, and goodwill

• Other assets may include prepaid expenses and deferred taxes

I listen to their concerns, empathize with them, and try to find a solution that satisfies both parties.

• I remain calm and professional, even if the consumer is angry or upset.

• I actively listen to their concerns and acknowledge their feelings.

• I try to put myself in their shoes and empathize with their situation.

• I offer solutions or alternatives that meet their needs while also aligning with company policies.

• I follow up with the consumer to ensure their issue has been resolved ...read more

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

• Accounting involves the systematic recording of financial transactions.

• It includes summarizing and analyzing financial data to provide insights into the financial health of a business.

• Accounting also involves preparing financial statements and reports for internal and external stakeholders.

• It helps in making informed business decisions, tracking income and expens...read more

Shortcut keys for MS Excel & MS-Word

• MS Excel: Ctrl+C (copy), Ctrl+V (paste), Ctrl+Z (undo), Ctrl+S (save), Ctrl+P (print)

• MS Word: Ctrl+B (bold), Ctrl+I (italic), Ctrl+U (underline), Ctrl+C (copy), Ctrl+V (paste)

I am a knowledgeable account executive with expertise in Rera, online payment, and intercompany transactions.

• Rera is the Real Estate Regulatory Authority that regulates the real estate sector in India.

• Rera fund transfer is the transfer of funds from the buyer to the developer through an escrow account.

• Online payment is a method of payment that is made through the internet.

• The compliance of intercompany transactions refers to the adherence to legal and regulatory requirements ...read more

The entry of sales refers to the recording of sales transactions in the accounting system.

• Sales entry includes recording the date, customer name, product or service sold, quantity, unit price, and total amount.

• It is important to categorize sales correctly, such as distinguishing between cash sales and credit sales.

• Sales entries are typically recorded in the sales journal or general journal, and then posted to the appropriate accounts in the general ledger.

• For example, a sales...read more

Revenue recognition under IND AS 115

• Identify the contract with the customer

• Identify the performance obligations in the contract

• Determine the transaction price

• Allocate the transaction price to the performance obligations

• Recognize revenue when (or as) the entity satisfies a performance obligation

To add the value from cell A1 to A20 in an Excel sheet, you can use the SUM function.

• Enter the formula '=SUM(A1:A20)' in the desired cell to add the values from A1 to A20.

• Make sure that the cells A1 to A20 contain the values you want to add.

• You can also manually input the values in the formula instead of referencing the cells.

Yes, I am comfortable with rotational shifts.

• I have previously worked in rotational shifts and have adapted well to the schedule.

• I understand the importance of being flexible and available to work during different hours.

• I am willing to adjust my personal schedule to accommodate the rotational shifts.

• I believe that working in different shifts can provide a diverse work experience and help me develop new skills.

To check if a vendor bill is genuine, match it with the PO order and verify the details.

• Verify the vendor's name and address on the bill

• Check if the bill matches the PO order in terms of quantity, price, and items

• Ensure that the bill has a unique invoice number and date

• Verify that the bill has been authorized by the relevant department or personnel

• Check for any discrepancies or errors in the bill

Overheads allocation differs for service and manufacturing industries.

• For service industry, overheads are allocated based on the time spent on each project or client.

• For manufacturing industry, overheads are allocated based on the number of units produced.

• Service industry overheads include rent, utilities, salaries, etc.

• Manufacturing industry overheads include rent, utilities, salaries, depreciation, etc.

• Activity-based costing is used to allocate overheads accurately.

• Overhead...read more

Yes, I am familiar with various medicines. Here are 10 names: Aspirin, Ibuprofen, Acetaminophen, Amoxicillin, Lisinopril, Atorvastatin, Metformin, Omeprazole, Albuterol, Levothyroxine.

• Aspirin

• Ibuprofen

• Acetaminophen

• Amoxicillin

• Lisinopril

• Atorvastatin

• Metformin

• Omeprazole

• Albuterol

• Levothyroxine

The journal entry for provision of legal fees involves recording the expense and liability for legal services.

• Debit the Legal Fees Expense account to record the expense

• Credit the Legal Fees Payable account to record the liability

• Example: Debit Legal Fees Expense $5,000, Credit Legal Fees Payable $5,000

Yes, I have experience in advance excel and TDS payment and returns.

• I have worked extensively with advance excel and can handle complex spreadsheets.

• I am well-versed with TDS payment procedures and have experience in making timely payments.

• I have filed TDS returns in the past and understand the process thoroughly.

• I am comfortable using various software and tools related to accounting and finance.

Yes, I have experience in TDS deduction and TCS collection.

• I have experience in calculating and deducting TDS (Tax Deducted at Source) from payments made to vendors or contractors.

• I am familiar with the process of collecting TCS (Tax Collected at Source) on specified transactions as per tax regulations.

• I have ensured timely and accurate filing of TDS and TCS returns to comply with tax laws.

• I have maintained records and documentation related to TDS and TCS transactions for aud...read more

Yes, I have knowledge of GST Return Filing and Due Dates.

• I am familiar with the different types of GST returns such as GSTR-1, GSTR-3B, and GSTR-9.

• I understand the due dates for filing GST returns which vary based on the type of taxpayer and turnover.

• I am aware of the penalties for late filing of GST returns.

• I have experience in preparing and filing GST returns accurately and on time.

• I stay updated with any changes in GST laws and regulations related to return filing.