Are you preparing for an accounting interview? There is a lot of competition in the job market for the position of accounting and you need to be well prepared.
Name Different Accounting Concepts:
Accounting concepts are,
Do you think there is any difference between inactive and dormant accounts?
Yes, both are different terms in accounting. Inactive accounts mean that accounts have been closed and will not be used in the future as well. While dormant accounts are those that are not functional today but may be used in the future.
Define fictitious assets?
These are the assets that cannot be shown or touch. Fictitious assets can only be felt such as goodwill, rights, etc.
Differentiate between provision and reserve?
I will provide some of the common accounting interview questions along with answers please go through it.
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Name Different Accounting Concepts:
Actually Accounting principles are classified into two categories. They are
- Accounting concepts
- Accounting conventions
Accounting concepts are,
- Business entity concept
- Dual aspect concept
- Going concern concept
- Money Measurement concept
- Objective evidence concept
- cost concept
- Accounting period concept
- Accrual concept
- Matching cost concept
- Historical record concept
Accounting Conventions are 4 types,
- Disclosure
- Materiality
- Consistency
- conservatism
There are two types of business transactions in accounting i.e., revenue and capital.
What is GST?
GST stands for Goods and Service Tax. It is an indirect tax other than income tax. Its charges on the value of the service or product sold to a customer. The customer/clients pay the GST, and the seller deposits the GST with the government. Some countries have sales, service tax with works more or less the same as GST.
Yes, both are different terms in accounting. Inactive accounts mean that accounts have been closed and will not be used in the future as well. While dormant accounts are those that are not functional today but may be used in the future.
Define fictitious assets?
These are the assets that cannot be shown or touch. Fictitious assets can only be felt such as goodwill, rights, etc.
Differentiate Public and Private Accounting?
Public accounting is a type of accounting that is done by one company for another company. Private accounting is done for your own company.
Can you name different branches of accounting?
There are different branches of accounting,
- Financial Accounting
- Management Accounting
- Cost Accounting
- Inflation Accounting
- Human resource Accounting
Differentiate Accounting and Auditing?
Accounting is all about recording daily business activities while auditing is the checking that whether all these events have been noted down correctly or not.
What is Accounts Payable?
The amount a company owes because it purchased goods or services on credit from a vendor or supplier. Accounts payable are liabilities.
What is Accounts Receivable?
The amount a company has right to collect because it sold goods or services on credit to a customer. Accounts receivable are assets.
What is deferred tax liability?
Deferred tax liability signifies that a company may pay more tax in the future due to current transactions.
What is the deferred tax asset?
A deferred tax asset is when the tax amount has been paid or has been carried forward but has still not been recognized in the income statement. The value is created by taking the difference between the book income and the taxable income.
What is accounting equation?
The accounting is all about assets, liabilities, and capital. Hence, its equation is summarized as,
Assets = Liabilities + Owners equity
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What is scrap value in accounting?
Scrap value is the residual value of an asset that any asset holds after its estimated lifetime.
What are the bills receivable?
Bills receivable are the proceeds or payments, which a merchant or a company will be receiving from its customers.
What is Marginal cost?
If there is any increase in the number of units produced, the total cost of output is changed. Marginal cost is that change in the cost of an additional unit of output.
Define Depreciation?
Depreciation is the gradual reduction or loss in the value of fixed assets like building, plant, furniture etc., There are different methods of providing depreciation, they are
- Fixed installment method
- Diminishing balance method
- Annuity method
- Depreciation fund method
- Insurance policy method
- Depletion method
- Revaluation method
- Machine hour rate method
- Mileage method
Provisions: This refers to keeping the money for a given liability. In short, Expenses.
Reserves: This refers to retaining some amount from the profit for future use. In short, Profits.
What is Bad debts?
Bad debts expense is related to a company's current asset accounts receivable. Bad debts expense is also referred to as uncollectible accounts expense or doubtful accounts expense. Bad debts expense results because a company delivered goods or services on credit and the customer did not pay the amount owed.
What is Contingent liability?
A contingent liability is a liability or a potential loss that may occur in the future depending on the outcome of a specific event. Potential lawsuits, product warranties, and pending investigation are some examples of contingent liability.
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