Accounting Interview Questions and Answers
Question - 51 : - What is General ledger account?
Answer - 51 : -
The general ledger account is an account used to record all the information. It can be expenses and income types that are recorded into separate accounts.
In this account debits and credits, transactions are entered in one place and kept balanced.
Question - 52 : - What are the disadvantages of a double-entry system?
Answer - 52 : -
The disadvantages of the double-entry system are:
- If there are any compensatory errors, it is difficult to find out by this system
- This system needs more clerical labor.
- It is difficult to find errors if the errors are in the transactions recorded in the books.
- The double-entry system is not preferable to disclose all the information of a transaction, which is not properly recorded in the journal.
Question - 53 : - List out the stages of double entry system
Answer - 53 : -
The stages of the double-entry system are:
- Recording of transactions in the journal
- Posting of a journal entry into the respective ledger accounts and then preparing a trial balance
- Preparing final accounts and closing of books of accounts
Question - 54 : - What are the rules for debit and credit for different accounts to increase the amount in your business accounts?
Answer - 54 : -
The rules for debit and credit for different accounts are:
- For a capital account, credit to increase it and debit to decrease it.
- For an asset account, debit to increase it and credit to decrease it.
- For a liability account, credit to increase it and debit to decrease it.
- For an expense account, debit to increase it, and credit to decrease it.
- For an income account, credit to increase it and debit to decrease it.
Question - 55 : - Mention the types of accounts involved in double-entry book-keeping
Answer - 55 : -
Double-entry book-keeping includes five types of accounts:
- Income accounts
- Expense accounts
- Asset accounts
- Liability accounts
- Capital accounts
Question - 56 : - What are the accounting events that are frequently involved in compound entries?
Answer - 56 : -
The accounting events that are frequently involved in compound entries are:
- Record multiple line items in a supplier invoice that address to different expenses
- Record all bank deductions associated with a bank reconciliation
- Record deduction and payments related to a payroll
- Record the account receivable and sales taxes related to a customer invoice
Question - 57 : - What is compound journal entry?
Answer - 57 : -
A compound journal entry is just like other accounting entries where there is more than one debit, more than one credit, or more than one of both debits and credits. It is essentially a combination of several simple journal entries.
Question - 58 : - List down important cost control techniques
Answer - 58 : -
Important cost controlling techniques are:
- Budgetary control
- Labor control
- Material control
- Standard costing
- Overheads control
Question - 59 : - Mention whether the account “Cash” will be credited or debited when a company pays a bill?
Answer - 59 : -
The account “Cash” will be credited when a company pays a bill.
Question - 60 : - What are assets minus liabilities?
Answer - 60 : -
Assets minus liabilities are defined as:
Assets minus liabilities = owners’ equity / stockholder’s equity.