600+ Executive Accountant Interview Questions and Answers

Accounts is required to keep track of financial transactions and ensure financial stability of an organization.

• Accounts help in maintaining financial records and tracking expenses.

• It helps in preparing financial statements and reports for analysis.

• Accounts aid in budgeting and forecasting for future financial planning.

• It ensures compliance with legal and regulatory requirements.

• Accounts also help in detecting and preventing fraud and errors.

• For example, a company needs to mai...read more

Block credit u/s 17 (5) of CGST Act restricts input tax credit for certain goods/services

• Section 17(5) of CGST Act lists items for which input tax credit is blocked

• Includes items like motor vehicles, food and beverages, outdoor catering, etc.

• Input tax credit cannot be claimed for these specified goods/services

The process of recording, summarizing, and reporting financial transactions is known as accounting.

• Recording financial transactions involves documenting all money coming in and going out of a business.

• Summarizing financial transactions involves organizing and categorizing the recorded transactions into financial statements.

• Reporting financial transactions involves communicating the financial information to stakeholders such as investors, creditors, and management.

• Examples inc...read more

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

• TDS is a tax collection mechanism in India where the payer deducts a certain percentage of tax from the payment made to the payee.

• The deducted tax is then deposited with the government on behalf of the payee.

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

• The rate of TDS varies depending on the type of payment and the amount being paid.

• TDS certifi...read more

An invoice needs to be raised if the turnover crosses Rs 50 crore.

• The invoice should be raised as soon as the turnover crosses Rs 50 crore.

• The invoice should include all relevant details such as the date, amount, and customer information.

• The invoice should be sent to the customer promptly to ensure timely payment.

• It is important to keep accurate records of all invoices raised and payments received.

• The company may need to register for GST if the turnover exceeds Rs 20 lakh.

Pacific Healthcare is a leading healthcare provider in the region.

• Pacific Healthcare offers a wide range of medical services including primary care, specialty care, and surgical procedures.

• They have state-of-the-art facilities and a team of highly skilled healthcare professionals.

• Pacific Healthcare is known for their commitment to patient care and quality service.

• They have multiple locations across the region to serve a large patient population.

Cash statement and bank statement are different in terms of content and purpose.

• Cash statement shows the cash transactions of a business, while bank statement shows the transactions related to the bank account.

• Cash statement includes cash sales, expenses, and withdrawals, while bank statement includes deposits, withdrawals, and bank charges.

• Cash statement is prepared by the company, while bank statement is provided by the bank.

• Cash statement helps in monitoring cash flow, whi...read more

Accounts payable is the amount of money a company owes to its suppliers or vendors for goods or services purchased on credit.

• Accounts payable is a liability on the balance sheet representing the amount a company owes for goods or services purchased on credit.

• The golden rules of accounts payable include ensuring accurate and timely recording of invoices, maintaining good relationships with suppliers, and managing cash flow effectively.

• Examples of accounts payable include invoi...read more

Chartered Accountant conditions for yearly balance sheet, sales tax case, and income tax case

• Chartered Accountants must ensure compliance with accounting standards and regulations when preparing yearly balance sheets

• They need to accurately calculate and report sales tax liabilities based on sales transactions

• Chartered Accountants must accurately prepare income tax returns for individuals or businesses, taking into account deductions, credits, and exemptions

• They should stay up...read more

Yes, I have knowledge in manufacturing accounts.

• I have experience in maintaining and reconciling inventory accounts.

• I am familiar with cost accounting methods used in manufacturing.

• I have worked with production reports and variance analysis.

• I understand the importance of tracking overhead costs in manufacturing.

• I have knowledge of financial statements specific to manufacturing companies.

Accounts payable is money owed by a company to its suppliers while accounts receivable is money owed to a company by its customers.

• Accounts payable is a liability while accounts receivable is an asset.

• Accounts payable is recorded on the balance sheet under current liabilities while accounts receivable is recorded under current assets.

• Accounts payable is paid by the company while accounts receivable is collected by the company.

• Examples of accounts payable include bills for goo...read more

I am proficient in Excel and have a strong understanding of formulas.

• I am skilled in using various formulas in Excel such as VLOOKUP, SUMIF, COUNTIF, etc.

• I am able to create complex spreadsheets with multiple sheets and formulas.

• I am familiar with pivot tables and charts to analyze data.

• I am constantly learning and improving my Excel skills.

GST return filing is the process of submitting periodic tax returns to the government as per the Goods and Services Tax regulations.

• GST return filing is mandatory for all businesses registered under GST.

• It involves reporting the details of sales, purchases, and tax paid or collected during a specific period.

• There are different types of GST returns based on the nature of the business and turnover.

• The returns can be filed online through the GST portal.

• Late filing or non-filing ...read more

Profit and loss account shows the company's revenues and expenses over a period, while the statement of financial position shows the company's assets, liabilities, and equity at a specific point in time.

• Profit and loss account summarizes the company's revenues and expenses, resulting in the net profit or loss for a specific period.

• Statement of financial position (balance sheet) shows the company's assets, liabilities, and equity at a specific point in time, providing a snapsh...read more

There are three types of GST in India: CGST, SGST, and IGST.

• CGST (Central Goods and Services Tax) is levied by the central government on intra-state supplies of goods and services.

• SGST (State Goods and Services Tax) is levied by the state government on intra-state supplies of goods and services.

• IGST (Integrated Goods and Services Tax) is levied by the central government on inter-state supplies of goods and services.

Bills payable are the amounts owed by a company to its suppliers or vendors for goods or services received.

• Bills payable are recorded as a liability on the balance sheet.

• They are typically due within 30 to 90 days of receipt of the goods or services.

• Examples of bills payable include invoices for raw materials, utilities, and rent.

• Managing bills payable is an important part of cash flow management for a company.

V-lookup & H-Lookup are Excel functions used to search for a specific value in a table and return a corresponding value.

• V-lookup searches for a value in the leftmost column of a table and returns a value in the same row from a specified column.

• H-Lookup searches for a value in the top row of a table and returns a value in the same column from a specified row.

• Both functions are commonly used in data analysis and can save time when working with large datasets.

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

• The golden rules include: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified.

• For example, when a company receives cash from a customer, the cash account is debited (increased) and the accounts rece...read more

Yes, I generate e-way bills as part of my responsibilities as an Accounts Executive.

• As an Accounts Executive, generating e-way bills is a crucial task to ensure compliance with transportation regulations.

• I am familiar with the process of generating e-way bills and have experience in using the necessary software or online platforms.

• I understand the importance of accurate and timely generation of e-way bills to avoid any legal or logistical issues.

• Examples of situations where I...read more

Prepaid expenses are expenses that have been paid in advance but have not yet been used or consumed.

• Prepaid expenses are considered assets on the balance sheet.

• They are recorded as an expense in the income statement over the period in which they are used or consumed.

• The journal entry for recording prepaid expenses involves debiting the Prepaid Expense account and crediting the Cash or Bank account.

• As the prepaid expense is used or consumed, it is gradually recognized as an ex...read more

Golden rules are basic principles of accounting that guide the preparation of financial statements. There are three types of accounting: financial, management, and cost accounting.

• Golden rules of accounting include: Debit the receiver, Credit the giver; Debit what comes in, Credit what goes out; Debit all expenses and losses, Credit all incomes and gains.

• Types of accounting: Financial accounting focuses on external reporting to stakeholders, management accounting provides int...read more

The golden rule of accounting is to debit the receiver and credit the giver.

• Debit the account that receives something

• Credit the account that gives something

• Maintains the balance sheet equation

• Used in double-entry bookkeeping

• Example: When a company receives cash, debit the cash account and credit the revenue account

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

• TDS is a tax collection mechanism in India

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

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

• The recipient of the payment receives the net amount after tax deduction

• TDS rates vary depending on the type of payment and the income of the recipient

I am familiar with various accounting software such as QuickBooks, Xero, and SAP.

• QuickBooks

• Xero

• SAP

Yes, I have practical knowledge in GST.

• I have experience in preparing and filing GST returns

• I am familiar with GST regulations and compliance requirements

• I have worked on GST audits and reconciliations

• I have provided GST advisory services to clients

Deferred tax and liabilities refer to taxes that are recognized in the financial statements but not yet paid.

• Deferred tax is the tax effect of temporary differences between accounting profit and taxable profit.

• Deferred tax liabilities are taxes that are due in the future as a result of these temporary differences.

• They are recognized in the financial statements to ensure that taxes are accounted for accurately.

• Examples include depreciation expenses and revenue recognition diff...read more

I have over 10 years of experience in accounting, specializing in financial reporting, budgeting, and compliance.

• Managed financial reporting for a $5 million budget, ensuring accuracy and compliance with GAAP.

• Led a team in the implementation of a new accounting software, improving efficiency by 30%.

• Conducted audits that identified cost-saving opportunities, resulting in a 15% reduction in operational expenses.

• Developed and monitored budgets for multiple departments, aligning ...read more

USA taxation involves federal, state, and local taxes on income, property, sales, and more.

• USA has a progressive income tax system, with tax rates ranging from 10% to 37% based on income levels.

• There are also state income taxes, varying by state, with some states having no income tax (e.g. Texas, Florida).

• Property taxes are levied by local governments on real estate, with rates varying by location.

• Sales tax rates also vary by state, ranging from 0% (e.g. Montana, Oregon) to o...read more

Depreciation rates on plant machinery and land vary depending on the accounting standards and useful life of the assets.

• Depreciation rates for plant machinery are typically determined based on the expected useful life of the equipment.

• Land is generally not depreciated as it is considered to have an indefinite useful life.

• Different accounting standards may have specific guidelines for depreciation rates on plant machinery and land.

• It is important to consult with accounting pro...read more

Elements included in balance sheet are assets, liabilities, and equity.

• Assets: Includes cash, accounts receivable, inventory, property, and equipment.

• Liabilities: Includes accounts payable, loans, and other debts owed by the company.

• Equity: Represents the owner's stake in the company, including retained earnings and stock.

• Balance sheet must always balance, with assets equaling liabilities plus equity.

The golden rule of accounting is to debit the receiver and credit the giver.

• Debit the account that receives something

• Credit the account that gives something

• Maintains the balance sheet equation of Assets = Liabilities + Equity

• Example: Debiting cash account when cash is received and crediting accounts payable when payment is made

W9, W8 and 1099 are tax forms used in the United States.

• W9 is a form used by employers to request taxpayer identification number and certification from their employees.

• W8 is a form used by foreign individuals and entities to claim exemption from or reduction of withholding taxes.

• 1099 is a form used to report various types of income received by non-employees, such as independent contractors or freelancers.

• W9 and 1099 are commonly used in the hiring process, while W8 is used fo...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 and credit what goes out, Debit expenses and losses and credit income and gains, Debit assets and credit liabilities and equity.

• Accounting helps in decision making, financial planning, and control.

• Examples of financial statements include balance sheet, income statement, and cash flow s...read more

Asset accounting is the process of tracking and managing a company's assets, while liabilities are debts or obligations owed by the company.

• Asset accounting involves recording and tracking all assets owned by a company, including tangible assets like property and equipment, as well as intangible assets like patents and trademarks.

• Liabilities are debts or obligations owed by a company, such as loans, accounts payable, and accrued expenses.

• Asset accounting and liabilities are i...read more

BRS stands for Bank Reconciliation Statement, which is a statement prepared to reconcile the balance as per bank statement with the balance as per company's books. Financial statements are reports that show the financial performance and position of a company.

• BRS is prepared to ensure that the company's records match the bank's records

• It helps in identifying any discrepancies or errors in recording transactions

• Financial statements include Balance Sheet, Income Statement, Cash ...read more

P2P cycle refers to the Procure-to-Pay cycle, which is the process of purchasing goods or services and paying for them.

• The cycle starts with identifying the need for a product or service.

• Then, a purchase order is created and sent to the supplier.

• The supplier delivers the product or service and sends an invoice.

• The invoice is verified and approved for payment.

• Finally, payment is made to the supplier.

• The cycle ends with recording the transaction in the accounting system.

Prepayment is payment made in advance for goods or services, while accrual is recording revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Prepayment involves paying for goods or services before receiving them

• Accrual involves recognizing revenues and expenses when they are incurred, not when cash is exchanged

• Prepayment is recorded as an asset on the balance sheet until the goods or services are received

• Accrual ensures that financial statements ...read more

Financial lease is a long-term lease where the lessee has ownership benefits, while operating lease is a short-term lease where the lessor retains ownership.

• Financial lease is a type of lease where the lessee has the benefits and risks of ownership, typically for the majority of the asset's useful life.

• Operating lease is a type of lease where the lessor retains ownership of the asset and the lessee uses it for a shorter period of time.

• Financial lease is usually non-cancellabl...read more

Maintaining balance between compliance and ease of doing business is crucial for an Executive Accountant.

• Strive to ensure compliance with all relevant laws, regulations, and accounting standards.

• Implement efficient processes and systems to streamline business operations and reduce administrative burden.

• Regularly review and update internal controls to mitigate risks and ensure accuracy of financial reporting.

• Provide guidance and support to the organization in navigating comple...read more

G/L stands for General Ledger. It is the central repository of all financial transactions of a company.

• G/L is used to record all financial transactions of a company.

• It is the primary source for generating financial statements.

• It helps in tracking the financial health of a company.

• G/L contains all the accounts and sub-accounts of a company.

• Examples of G/L accounts include cash, accounts receivable, accounts payable, and inventory.

Microfinance is a type of financial service that provides small loans and other financial services to low-income individuals or groups who lack access to traditional banking services.

• Microfinance aims to help alleviate poverty by providing financial services to those who are unable to access traditional banking services.

• It typically involves small loans, savings accounts, insurance, and other financial products tailored to the needs of low-income individuals.

• Microfinance inst...read more

The question is asking if the candidate is comfortable with commuting from Ankleshwar to Dahej.

• Ankleshwar and Dahej are two cities in Gujarat, India.

• Dahej is approximately 45 kilometers away from Ankleshwar.

• The commute between Ankleshwar and Dahej can be done by road or train.

• The question is assessing the candidate's willingness to travel for work.

BRS is Bank Reconciliation Statement, TDS is Tax Deducted at Source, and GST is Goods and Services Tax.

• BRS is a statement that compares the bank balance as per the bank statement with the balance as per the company's books.

• TDS is a tax deducted by the payer at the time of making payment to the payee. It is deducted on various types of payments such as salary, rent, commission, etc.

• GST is a tax levied on the supply of goods and services. It is divided into CGST, SGST, and IGST...read more

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

• GST is a consumption tax that is ultimately borne by the end consumer

• It is a multi-stage tax system where tax is collected at every stage of the supply chain

• GST aims to eliminate the cascading effect of taxes and streamline the tax system

• There are different GST rates for different goods and services, such as 5%, 12%, 18%, and 28%

• GST has replaced various indirect t...read more

I have a good understanding of taxation laws and regulations.

• Familiar with income tax, sales tax, and property tax

• Knowledge of tax deductions and exemptions

• Experience in preparing and filing tax returns

• Awareness of tax planning and strategies

• Stay updated with changes in tax laws and regulations

• Example: Helped a client save money by identifying tax deductions they were eligible for

GSTR1 and GSTR3B are two types of GST returns filed by businesses in India.

• GSTR1 is a monthly or quarterly return that contains details of outward supplies made by the taxpayer.

• GSTR3B is a monthly return that summarizes the taxpayer's sales, purchases, and tax liability.

• GSTR1 is used to report sales invoices, export invoices, and debit/credit notes.

• GSTR3B is used to report the summary of sales, purchases, input tax credit, and tax liability.

• GSTR1 needs to be filed by the 10th...read more

I have a good knowledge of GST and its implementation in accounting.

• I am familiar with the GST laws and regulations.

• I understand the different GST rates and exemptions.

• I can handle GST invoicing and filing of GST returns.

• I am aware of the input tax credit mechanism.

• I can assist in GST audits and resolving any GST-related issues.

• I stay updated with any changes or updates in the GST regime.

• I have experience in using GST accounting software like Tally or QuickBooks.

• I can provide...read more