Head Accountant Interview Questions and Answers

Overdraft is a facility provided by the bank to withdraw more money than available in the account, while over drawing refers to withdrawing more money than available without any prior arrangement.

• Overdraft is a pre-arranged credit facility offered by the bank to account holders.

• Overdrawing refers to withdrawing more money than available in the account without any prior agreement.

• Overdraft usually incurs interest charges, while over drawing may lead to penalties or fees.

• Exampl...read more

NPAs are non-performing assets that impact a bank's financial health. They are important for assessing risk and making informed decisions.

• NPAs are loans or advances that have stopped generating income for the bank due to non-payment by the borrower.

• They indicate the quality of assets held by a bank and its ability to recover funds lent out.

• Banks use NPAs to assess their financial health, manage risk, and make strategic decisions.

• Regular monitoring of NPAs helps in identifying...read more

Bank reconciliation statement is a document that matches the balance in a company's bank account with the balance in its accounting records.

• Bank reconciliation statement helps in identifying any discrepancies between the two balances.

• It ensures that all transactions are recorded accurately and completely.

• It helps in detecting errors, fraud, or any unauthorized transactions.

• Examples: checks issued but not yet cleared, bank fees, interest earned, etc.

Indian and Ethiopian accounting systems differ in their approach to financial reporting and regulatory compliance.

• Indian accounting system follows the Generally Accepted Accounting Principles (GAAP) while Ethiopian accounting system follows the International Financial Reporting Standards (IFRS).

• Indian accounting system is more rule-based while Ethiopian accounting system is more principle-based.

• Indian accounting system is heavily influenced by tax laws and regulations while E...read more

Ethiopian accounting also includes traditional methods such as bartering and communal labor.

• Ethiopian accounting has a strong emphasis on community and sharing resources.

• Bartering is still a common practice in rural areas.

• Communal labor is often used for farming and construction projects.

• The Ethiopian government has implemented modern accounting practices, but traditional methods still play a significant role.