Accounting Interview Questions and Answers
Question - 81 : - Where a cash discount should be recorded in a journal entry?
Answer - 81 : -
A cash discount should be recorded in a journal entry as a reduction of expense in a cash account.
Question - 82 : - Why some asset accounts have a credit balance?
Answer - 82 : -
Some asset accounts have a credit balance due to:
- Receiving and posting an amount that was higher than the recorded receivable.
- Expenses occurred faster than the agreed-upon prepayments.
- An error caused by posting an amount to a wrong account.
- The number of checks written exceeded the positive amount in the Cash account.
- Continuing to amortize or depreciate an asset after its balance has reached zero.
Question - 83 : - What is bad debt expense?
Answer - 83 : -
A Bad debt expense is the amount of an account receivable that is considered to NOT be collectible.
Question - 84 : - What is the master account?
Answer - 84 : -
A master account has subsidiary accounts. A master account receivable could be anything, it can be account receivable for various individual receivable accounts.
Question - 85 : - In which account does the unpresented cheque will get recorded?
Answer - 85 : -
The unpresented cheque will get recorded as a credit to the cash account in the company’s General ledger.
Question - 86 : - What knowledge should financial accountant have?
Answer - 86 : -
A certified financial accountant should have knowledge about:
- Accounting/Bookkeeping principles and practices
- Reporting and analysis of financial data
- Auditing practices and principles
- Account management
- Budgets
- Software knowledge dealing with Accounting
- Knowledge of relevant laws, codes, and regulations
- Good soft skills
- Being a team player
- Ability to learn quickly and up skill
- Basic Technical skills
Question - 87 : - What are the three factors that can affect your cash flow and business profitability?
Answer - 87 : -
The three factors that can affect your cash flow and business profit include:
- Cash flows from investing activities: It includes shares, bonds, physical property, machinery, etc.
- Cash flows from operating activities: It does not include cash received from other sources like investments.
- Cash flow from financing activities: It includes any activities that involve:
- Dividend payments that the company made to its shareholders.
- Any money that includes stock to the public.
- Money borrower going to borrow from the lender.
Answer - 88 : -
Double-entry accounting is an accounting system that requires recording business transactions or events in at least two accounts. It is the same concept of accounting, where every debit account should be matched with a credit account.
For example, if a company takes a loan from a bank, it receives cash as an asset, but at the same time, it creates a liability for a company.
This single entry will affect both accounts, the asset accounts, and the liabilities accounts. It is referred to as double-entry accounting.
Question - 89 : - What is GAAP?
Answer - 89 : -
GAAP means Generally Accepted Accounting Principle; it is a framework of accounting, standards, procedures & rules determined by the professional accounting industry and practiced by publicly traded U.S companies all over the U.S.A.
Question - 90 : - Mention the types of ledgers
Answer - 90 : -
There are three types of ledger
- General ledger
- Debtors ledger
- Creditors ledger