Accounting Interview Questions and Answers
Question - 91 : - What is ledger?
Answer - 91 : -
A ledger can be referred to as an accounting book that keeps the record of journal entries in chronological order to individual accounts. The process of recording this journal entries is known as posting.
Question - 92 : - What is working capital?
Answer - 92 : -
Working capital is a financial metric that calculates the resources available to the company to finance its day-to-day operations. It is typically calculated by deducting current liabilities from current assets.
Question - 93 : - What does the financial statement of the company include?
Answer - 93 : -
Financial statement of the company includes various information like:
- Balance Sheet ( Assets, liabilities, and equity)
- Income statement ( Profit or Loss statement)
- Equity statement
- Cash flow statement
Question - 94 : - Explain the meaning of long-term notes payable is or long-term liabilities
Answer - 94 : -
Long-term notes payable or liabilities are referred for that loan that is not supposed to due for more than a year.
These are the loans from banks or financial institution that are secured against various assets on the balance sheet, such as inventories.
Question - 95 : - Explain the term account payable
Answer - 95 : -
Account payable is referred to as the amount the company owes to its suppliers, its employees, and its partners. In other words, it is the basic cost levied on the company to run a business process that is outstanding.
Account payable for one company may be account receivable for another firm or company.
Question - 96 : - What is accrual accounting?
Answer - 96 : -
Accrual Accounting is a method for measuring the performance and position of the company by identifying economic events.
In this method, revenue is compared with the expenditures at the time in which the transaction occurs rather than when the payment is made.
Question - 97 : - Explain what does the standard journal entry includes?
Answer - 97 : -
A standard journal entry includes, date of the business transaction, the name of the accounts affected, amounts to be debited or credited, and a brief description of the event.
Question - 98 : - What are liabilities?
Answer - 98 : -
Liability can be defined as an obligation towards another company or party. It may consist of delivering goods, rendering services, or paying money. They are the opposite of assets, and it may include:
- Account payable
- Interest and dividend payable
- Bonds payable
- Consumer deposits
- Reserves for federal taxes
- Short term loans
Question - 99 : - What is the basic difference between asset, equity, and liabilities?
Answer - 99 : -
- Asset describes what financial institute (bank) or people owe.
- Liabilities is something you owe people or organization.
- Equity is something you own, for example, the amount of your house loan you paid off.
Question - 100 : - Explain nominal accounts with example
Answer - 100 : -
A nominal account is a type of account that contains income and expenses. For example, wages account, salary account, etc.