100+ Executive Accountant Interview Questions and Answers for Freshers

Functions are not created in purchase book.

• Functions are not related to purchase book.

• Purchase book is a record of all purchases made by a company.

• Functions are created in programming languages to perform specific tasks.

Dr. and Cr. are abbreviations used in accounting to represent debit and credit.

• Dr. stands for debit, which represents an increase in assets or a decrease in liabilities or equity.

• Cr. stands for credit, which represents a decrease in assets or an increase in liabilities or equity.

• Dr. and Cr. are used to record financial transactions in double-entry bookkeeping.

• For example, when cash is received, it is debited (Dr.) as an increase in assets, and when cash is paid out, it is cre...read more

Gamlaa is a financial technology company that provides accounting software solutions for businesses.

• Gamlaa specializes in developing software for financial management and accounting.

• Their software helps businesses automate their accounting processes and manage their financial data.

• Gamlaa's solutions include features like bookkeeping, invoicing, payroll management, and financial reporting.

• They offer cloud-based software that allows users to access their accounting data from an...read more

Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

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

• It represents the reduction in the value of an asset on the balance sheet.

• Depreciation can be calculated using various methods such as straight-line, declining balance, or units of production.

• For example, a company purchases a delivery truck for $50,000. Over the next ...read more

The new tax slab in India for individuals is as follows: 0-2.5 lakh - no tax, 2.5-5 lakh - 5%, 5-10 lakh - 20%, above 10 lakh - 30%.

• 0-2.5 lakh income - no tax

• 2.5-5 lakh income - 5% tax

• 5-10 lakh income - 20% tax

• Above 10 lakh income - 30% tax

Journal entries are used to record financial transactions in the accounting system.

• Identify the accounts involved in the transaction

• Determine the type of account (asset, liability, equity, revenue, or expense)

• Decide whether the account should be debited or credited based on the transaction

• Record the entry in the general journal with the date, accounts, and amounts

• Ensure the debits equal the credits to maintain balance

Yes, I have a sales playbook that outlines our sales process, strategies, and best practices.

• Our sales playbook includes detailed information on our target market, buyer personas, and competitive analysis.

• It also outlines our sales process from lead generation to closing deals, including scripts, objection handling techniques, and follow-up strategies.

• The playbook is regularly updated based on feedback from the sales team and performance metrics.

• For example, our playbook incl...read more

Stock adjustment refers to the process of making changes to the inventory levels of a company.

• Stock adjustment is necessary to ensure accurate inventory records.

• It involves making changes to the quantity or value of stock on hand.

• Stock adjustments can be made for various reasons such as damaged goods, theft, or incorrect recording of transactions.

• The adjustment can be positive or negative depending on the situation.

• For example, if there was a theft of 10 units of a product, t...read more

ERP stands for Enterprise Resource Planning. It is a software system that integrates all aspects of a business's operations.

• ERP helps businesses streamline their processes and improve efficiency

• It includes modules for finance, human resources, inventory management, and more

• Examples of ERP systems include SAP, Oracle, and Microsoft Dynamics

• ERP can be customized to fit the specific needs of a business

• It provides real-time data and analytics to help businesses make informed deci...read more

TDS stands for Tax Deducted at Source. It is a tax collection mechanism in India.

• TDS is a way of collecting tax at the source of income.

• It is applicable to various types of income such as salary, interest, rent, commission, etc.

• The person making the payment deducts a certain percentage of tax and deposits it with the government.

• The deducted amount is reflected in the Form 16/16A which is issued to the person receiving the income.

• The person receiving the income can claim credi...read more

Satguru Tour & Travel is a travel agency providing customized travel solutions.

• Offers personalized travel packages for individuals and groups

• Specializes in luxury travel experiences

• Provides visa assistance and travel insurance

• Has a strong network of partners and suppliers worldwide

• Offers 24/7 customer support for travelers

AP stands for Accounts Payable, which is the process of managing and recording a company's expenses. SAP is a software system used for managing business operations and customer relations.

• AP involves tracking and paying invoices from vendors

• SAP is an enterprise resource planning software that integrates various business functions

• AP and SAP are often used together to streamline financial processes

• SAP can automate AP processes such as invoice processing and payment approvals

My interests include reading, traveling, and trying new cuisines.

• I enjoy reading books on various topics such as history, psychology, and biographies.

• I love to travel and explore new cultures. Some of my favorite destinations include Japan, Italy, and Thailand.

• I am a foodie and enjoy trying new cuisines. I recently tried Ethiopian food and loved it!

Current CTC is $80,000 and Expected CTC is $100,000

• Current CTC: $80,000

• Expected CTC: $100,000

The financial year is a 12-month period used by organizations to report their financial performance and prepare financial statements.

• It is a period of time typically lasting 12 months.

• It is used by organizations to track and report their financial activities.

• It helps in preparing financial statements and analyzing financial performance.

• The financial year can vary depending on the country or organization.

• For example, in the United States, the financial year is often the calend...read more

TDS percentage in section 194C for Individual is 1%.

• TDS rate for individuals under section 194C is 1%

• TDS is deducted on payments made to contractors and sub-contractors for work contracts

• Individuals need to deduct TDS at the rate of 1% if the payment exceeds Rs. 30,000 in a single payment or Rs. 1,00,000 in aggregate during the financial year

Bills Payable refers to the amount of money a company owes to its suppliers or vendors for goods or services received on credit.

• Bills Payable is a liability on the balance sheet of a company.

• It represents the amount of money that the company needs to pay to its creditors within a specified period.

• Examples of Bills Payable include invoices from suppliers for raw materials, utilities, or services rendered.

• Failure to pay Bills Payable on time can result in penalties or damage to...read more

Bills receivable refers to the written promises from customers to pay a certain amount at a future date.

• Bills receivable are assets for a company and are recorded on the balance sheet.

• They are similar to accounts receivable but are formalized with a written agreement.

• Interest may be charged on bills receivable if payment is not made on time.

• Examples include promissory notes and post-dated checks.

Journal entry of sale and purchase involves recording transactions in the accounts

• Sale journal entry: Debit Accounts Receivable/Cash, Credit Sales Revenue

• Purchase journal entry: Debit Purchases, Credit Accounts Payable/Cash

• Example: Sale of goods for $1,000 on credit - Debit Accounts Receivable $1,000, Credit Sales Revenue $1,000

GST stands for Goods and Services Tax.

• GST is a value-added tax levied on the supply of goods and services.

• It was introduced in India on July 1, 2017, to replace multiple indirect taxes.

• GST has helped in simplifying the tax structure and reducing tax evasion.

• It has also led to the creation of a common market across the country.

• GST has different rates for different goods and services, ranging from 0% to 28%.

• For example, essential items like food grains and healthcare services a...read more

Lead generation process is the initiation of consumer interest or inquiry into products or services of a business.

• Identifying target audience

• Creating relevant and valuable content

• Utilizing various marketing channels such as social media, email, and SEO

• Capturing leads through forms or landing pages

• Nurturing leads through follow-up communication

The opening trail balance can be either debit or credit depending on the account balances.

• The opening trail balance is the starting point for a new accounting period.

• If the total of all debit balances is greater than the total of all credit balances, the opening trail balance will be a debit balance.

• If the total of all credit balances is greater than the total of all debit balances, the opening trail balance will be a credit balance.

• The opening trail balance is used to ensure...read more

GST Reco involves reconciling GST data with financial records. RA bill process involves verifying and processing vendor bills.

• GST Reco involves matching GST returns with purchase and sales data to ensure accuracy.

• RA bill process includes verifying vendor bills against purchase orders and goods received notes.

• After verification, RA bills are processed for payment.

• Any discrepancies in GST Reco or RA bills need to be resolved before finalizing.

• Regular reconciliation and processi...read more

GSTR-1 due date is 10th of the following month, GSTR-3B due date is 20th of the following month, GSTR-9 due date is 31st December of the following financial year, GSTR-9C due date is 31st December of the following financial year

• GSTR-1 due date: 10th of the following month

• GSTR-3B due date: 20th of the following month

• GSTR-9 due date: 31st December of the following financial year

• GSTR-9C due date: 31st December of the following financial year

RCM in Tally can be managed by setting up the correct tax rates and creating appropriate ledgers.

• Set up tax rates for different types of transactions

• Create ledgers for tax payable and tax receivable

• Ensure correct tax classification for each transaction

• Generate tax reports to track tax liabilities and payments

The principle of account refers to the basic rules and guidelines that govern the recording and reporting of financial transactions.

• The principle of account includes concepts such as double-entry bookkeeping, accrual accounting, and the matching principle.

• It ensures that financial statements are accurate, reliable, and consistent.

• Examples of principles of account include the revenue recognition principle, the expense recognition principle, and the going concern principle.

• Adhe...read more

Accrual refers to the recognition of revenue or expenses in the financial statements before the actual cash transaction occurs.

• Accrual accounting method is used to record transactions based on when they are incurred, rather than when cash is exchanged.

• Accruals help provide a more accurate picture of a company's financial position and performance.

• Examples of accruals include accrued revenue, accrued expenses, and accrued interest.

• Accruals are necessary to comply with the match...read more

The Golden Rule is a moral principle that states one should treat others as one would like to be treated.

• The Golden Rule is a fundamental ethical principle found in many cultures and religions.

• It encourages individuals to consider the impact of their actions on others.

• It promotes empathy, kindness, and respect towards others.

• Examples of the Golden Rule include 'Do unto others as you would have them do unto you' and 'Treat others the way you want to be treated.'

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

• Involves recording all financial transactions of a business

• Includes maintaining accurate financial records

• Helps in tracking income, expenses, assets, and liabilities

• Essential for preparing financial statements and tax returns

• Examples: recording sales, purchases, payroll expenses

QuickBooks is a popular accounting software used by businesses to manage finances, track expenses, and generate reports.

• QuickBooks helps businesses track income and expenses

• It allows for easy invoicing and payment processing

• Users can generate financial reports and analyze business performance

• QuickBooks offers features like payroll management and inventory tracking

• Example: A small business owner uses QuickBooks to track sales, expenses, and payroll

Credit and debit are accounting terms used to record financial transactions.

• Credit refers to an entry that increases assets or decreases liabilities in accounting

• Debit refers to an entry that decreases assets or increases liabilities in accounting

• Credit is typically used for revenue, income, or deposits

• Debit is typically used for expenses, losses, or withdrawals

Chart of accounts is a list of all the accounts used by an organization to record financial transactions.

• It is a systematic list of all the accounts used by an organization

• It helps in organizing financial transactions

• It provides a framework for financial reporting

• It is usually organized in a hierarchical structure

• Examples of accounts include assets, liabilities, revenue, expenses, etc.

I will discuss the key responsibilities and skills required for an Account Executive role.

• Discuss the importance of building and maintaining client relationships

• Explain the process of identifying new business opportunities

• Highlight the ability to create and deliver effective sales presentations

• Emphasize the importance of meeting sales targets and KPIs

Advance tax is a system of paying taxes in advance based on estimated income for the year.

• Advance tax is paid periodically throughout the year before the end of the financial year.

• It is based on the estimated income of the taxpayer for the year.

• It helps in the smooth collection of taxes and prevents a large tax liability at the end of the year.

• Penalties may apply if advance tax is not paid on time or in the correct amount.

• Example: A self-employed individual may pay advance ta...read more

Deferred tax is a liability that arises due to temporary differences between accounting and tax rules.

• Deferred tax is the tax effect of timing differences between when income and expenses are recognized for tax purposes versus accounting purposes.

• It can be either deferred tax asset or deferred tax liability depending on whether the tax payable in the future is expected to be higher or lower than the tax payable currently.

• Deferred tax liabilities arise when taxable income is g...read more

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

• GST is a comprehensive indirect tax that replaced multiple indirect taxes in India.

• It was implemented on July 1, 2017.

• It is levied on the supply of goods and services.

• It has three components - CGST, SGST, and IGST.

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

The three golden rules of accounts are the basis of all accounting systems.

• Debit the receiver, credit the giver

• Debit what comes in, credit what goes out

• Debit expenses and losses, credit income and gains

Banking refers to the industry and activities related to the handling of financial transactions, such as deposits, loans, and investments.

• Banking involves accepting deposits from customers and providing them with loans and other financial services.

• Banks play a crucial role in the economy by facilitating the flow of money and credit.

• Banking services include savings accounts, checking accounts, credit cards, and mortgages.

• Banks also offer investment services such as wealth mana...read more

Business is the activity of making, buying, or selling goods or providing services in exchange for money.

• Business involves the exchange of goods or services for money

• It can include activities such as production, marketing, sales, and finance

• Businesses aim to generate profit and create value for customers

• Examples: Amazon selling products online, a local bakery providing baked goods for sale

TDS stands for Tax Deducted at Source. It is a tax collected by the government at the time of payment.

• TDS is a tax collected by the government at the time of payment.

• It is deducted from the income of the recipient.

• The person making the payment is responsible for deducting TDS and depositing it with the government.

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

• The rate of TDS varies depending on the type of payment and the income of the re...read more

Qualifications refer to the skills, knowledge, experience, or credentials required for a specific job or role.

• Qualifications can include educational degrees or certifications relevant to the field.

• Work experience in a similar role may also be a qualification.

• Specific skills such as proficiency in accounting software or strong analytical abilities can be qualifications.

• Some positions may require specific licenses or accreditations.

• Soft skills like communication, teamwork, and ...read more

The Golden Rules of Accounting are basic principles that guide the process of recording financial transactions.

• The Golden Rule of Debit and Credit: For every debit entry, there must be a corresponding credit entry.

• The Golden Rule of Personal Accounts: Debit the receiver, credit the giver.

• The Golden Rule of Real Accounts: Debit what comes in, credit what goes out.

• The Golden Rule of Nominal Accounts: Debit all expenses and losses, credit all incomes and gains.

Yes, TDS section 194J with a rate of 10% for fees for professional or technical services.

• TDS section 194J applies to fees for professional or technical services

• The rate of TDS under section 194J is 10%

• Example: If a company pays a consultant Rs. 50,000 for professional services, TDS of Rs. 5,000 (10%) must be deducted

Reverse charge is a mechanism where the recipient of the goods or services is liable to pay the tax instead of the supplier.

• Reverse charge is applicable in cases where the supplier is not required to be registered for GST.

• The recipient needs to pay the tax directly to the government instead of the supplier.

• Common in industries like construction, real estate, and services provided by non-resident suppliers.

• Helps in preventing tax evasion and ensuring compliance.

• Example: In con...read more

Cash burn refers to the rate at which a company is spending its cash reserves.

• It is the amount of money a company is losing each month.

• It is calculated by subtracting the company's monthly expenses from its monthly revenue.

• It is important for investors to monitor a company's cash burn to ensure it has enough cash to continue operating.

• If a company's cash burn rate is too high, it may need to raise additional funds through investments or loans.

• Example: A startup company may ha...read more

Documents required for exporting goods include commercial invoice, packing list, bill of lading, certificate of origin, and export license.

• Commercial invoice details the goods being exported and their value

• Packing list specifies the contents of each package being shipped

• Bill of lading serves as a receipt and contract for the shipment

• Certificate of origin confirms the country where the goods were produced

• Export license may be required for certain goods or destinations

Accounts in basic accounting refer to the records of financial transactions of a business.

• Accounts are used to track the financial activities of a business.

• They include categories such as assets, liabilities, equity, revenue, and expenses.

• Examples of accounts include cash, accounts receivable, accounts payable, and retained earnings.