60+ Account Executive Interview Questions And Answers

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Account Executive Interview Questions

Question 1. Explain What Is Cash Flow And Fund Flow?

Cash move and funds move: money move means direct entry of money in your business and exit of the identical funds move means entry of funds (money funds or non money funds) and their exit non money funds might imply rise in present property or fall in present liabilities which was not as a consequence of any money motion.

Question 2. Explain Accounting For Vc Money In Financials?

It will depend on the shape during which the money is available in. If it was invested as fairness (both Common or Preferred Stock), it reveals up on the stability sheet as Paid in Capital. If it got here in as debt (reminiscent of bridge mortgage, secured be aware, and so on.) it reveals up as debt that should be repaid by the corporate.

Question 3. Tell Me What Is The Difference Between Provision And Reverse?

Provisions are created in books as they’re anticipated. Example: provision for depreciation

Reserves are created in books as part of income, which could used to buy property or to declare dividends.

Question 4. Tell Me Is Financial Accounting Necessary?

Yes, the accounting calculates the price of capital to the business. It compares the present, anticipated, and historic charges of return. Suppose an organization is making 12% returns however borrowing money by utilizing the proprietor’s bank card at 22% be good to know that.

Question 5. Is There A Difference Between Accounting For Conversion Of Bonds And Accounting For The Conversion Of Preferred Stock?

Bonds have reductions and premiums and accrued curiosity. Preferred Stock doesn’t.

Question 6. Tell Me What Does The Word Credit Mean In Terms Of Accounting?

The phrase “credit score” is a part of the equation of double entry bookkeeping.

In order for bookkeeping entries to stability, there should at all times be a debit (left aspect, abbreviated by “dr”) and credit score (proper aspect, abbreviated by “cr”) entry that equal each other.

For instance: to report an Office Supply Store buy (on account ~ a payable), the entry could be:

Office Supplies Exp $500.00(dr)

Accounts Payable $500.00(cr)

If an entry doesn’t stability the totals for debits and credit, your books can be out of stability.

Question 7. How Many Invoices On Average Do You Handle On A Weekly/month-to-month Basis?

Show your understanding of the bill verification course of. Go by every step intimately reminiscent of checking that items have been acquired in correct situation or companies rendered in a passable method. Explain the significance of every step.

Question 8. Explain What Is Customer Account?

Debtors account and payments receivable account are theoretically similar. Both are known as as receivables. When we bought items to debtors account is debited. If we obtain a invoice from that debtor, we open payments receivable account by closing that debtor account. Thus, payments receivable account is nothing however debtor account.

If the invoice is dishonored on the due date, we once more debit the debtor account in our books. For info and accounting objective, we use each debtor account and payments receivable account.

Question 9. Were You Happy With The Grades You Achieved At A-level?

Chartered Accountancy corporations put a number of weight on A-level grades as these have been discovered to be the very best predictors of success in skilled examinations.

If your A ranges weren’t excellent, this may occasionally typically rely extra on the standard of the varsity you attended than your capacity. In some inner-city colleges it might be {that a} mediocre A-level efficiency that you just achieved may need been the very best in your college – if that is so, then make it clear. An common efficiency at a weak college academically would be the equal of a a lot better efficiency at some prestigious institutions.

Similarly, if there have been some other exterior elements, reminiscent of sickness, that will have affected your grades, inform the interviewers – however do not sound as if you’re making excuses.

Question 10. What Is The Entry For Provision? What Is The Provision?

Provision means liabilities it means payable account A it?s an very helpful for controlling payable accounts like phone prices, ESIC accounts, EPF accounts, A EPF payable accounts Dr to EPF accounts ESIC payable accounts Dr to ESIC account

Question 11. Does The Accounting System Appear To Facilitate One Specialty From Financial, Auditing, Or Cost Managerial Or Tax Accounting Over The Others?

The class of Accounting is that it’s a purveyor of data, organized into techniques, and exploited for a selected objective.

That is as a result of Accounting is imprecise. Interestingly, info from accounting will be break up into to strategies:

1. Valuation

2. Evaluation

1. Valuation: This is the kind of info that monetary/Tax/Cost accounting makes an attempt to sort out. What is that price? How a lot of it got here from this supply of worth? What would be the asset be price in ten years? All of those questions are valuation strategies and accounting supplies an informational standpoint from which to research these questions and confirm a solution to them.

2. Evaluation: This could be your classical managerial accounting. Did worker A present rent effort? What ought to compensation appear to be? How are we performing? All are analysis questions. Evaluation is very necessary to Internal Audit and the management atmosphere. You can simply picture a professor conducting analysis accounting to assign correct reward to college students who exhibit studying by testing.

Question 12. Explain What Is Accounting Management?

Accounting Management (Business) is the sensible utility of administration strategies to regulate and report on the monetary well being of the group. This entails the evaluation, planning, implementation, and management of applications designed to offer monetary information reporting for managerial decision-making. This consists of the upkeep of financial institution accounts, growing monetary statements, money move, and monetary efficiency evaluation. Accounting administration is a compulsory data module of any MBA program.

Accounting (IT) administration: Accounting is sometimes called billing administration. The purpose is to assemble utilization statistics for customers.

Using the statistics the customers will be billed and utilization quota will be enforced.

Examples:

► Disk utilization
► Link utilization
► CPU time

Question 13. Explain What Is Executive Accounting?

Executive Accounting is designed for service kind companies that require a classy accounting system, but easy to make use of accounting system. Executive Accounting accommodates many superior options reminiscent of three types of invoicing (service, distribution and recurrent), multi-currency capabilities, a number of checking account capabilities and different highly effective options. Executive is a single-user system that may be upgraded to a vast variety of customers.

Question 14. Explain What Is Meant By Partitioning?

Partitioning is nothing however grouping based mostly on the cluster, which is analogous type of response by a system.

Question 15. Tell Me What Is Accounting Normalization?

It is eradicating gadgets from the earnings assertion or stability sheet that don’t usually happen through the course of business to raised estimate the worth of an organization.

Question 16. Explain What Is Meant By Balancing?

Balancing means equalizing debit and credit score aspect totals in a T-account.

If there’s a deficit on aspect that’s, debit, or credit score a suspense account is opened with the balancing determine.

Question 17. Can You Please Give Me Examples Of Accounting Reports You Have Prepared?

Demonstrate your expertise in sustaining accounting ideas, practices and procedures to make sure correct and well timed monetary statements and reporting. Discuss your capacity to fulfill tight deadlines and undertake a large number of accounting actions. Show your understanding of typically accepted and statutory accounting ideas.

Question 18. Tell Me What Are The Differences Between Accounting And Auditing?

Accounting means recording of day right this moment transaction whereas auditing means rechecking of that transaction it’s correctly recorded or not.

Question 19. Tell Me What Are The Different Branches Of Accounting?

Financial accounting refers to accounting for revenues, bills, property, and liabilities. It entails the essential accounting processes of recording, classifying, and summarizing transactions.

  • Cost accounting is the department of accounting coping with the recording, classification, allocation, and reporting of present and potential prices.
  • Managerial accounting is the department of accounting designed to offer info to varied administration ranges within the hospitality operation for enhancing controls.

Question 20. Explain What Is Accounting Period?

This idea defines the unit of time for which accounting information are collected. It is difficult to calculate and measure the revenue if the business is buying and selling for lengthy durations. Therefore, accountants estimate profitability within the brief segments of time that we name Accounting durations.

Question 21. Explain What Is Service Tax?

When any employer supplies any service to his buyer, which earnings is extra underneath the tax then firm answerable for the pay tax.

In addition, service tax deposited of in underneath 5 days who you charged service tax to his prospects.

In the fee of Service tax quantity you may Credit availed throughout of the month.

Moreover, if any firm bought of any merchandise that has Excise obligation & E.Cess with E.Cess then you may credit score availed once you acquired excise kind to your vendor.

Question 22. Explain What Is Capital Gain?

Capital achieve: when any capital asset is bought and it’s bought at the next worth than its e-book worth then that further achieve known as capital achieve. The phrase revenue typically means income income. While capital achieve is mostly acquired occasionally.

Question 23. Tell Me Who Uses Accounting?

Taxpayers like to make use of accounting.

Question 24. Explain About A Situation Where You Showed Determination?

Other conditions that are regularly requested about embody the next:

Give an instance of once you:

  • Planned one thing.
  •  Took on duty.
  •  Led a staff.
  •  Had to deal with strain.
  •  Dealt with an unreasonable individual.
  •  Had to make a tough resolution?
  •  Used initiative
  •  Influenced others.
  •  Solved an issue.

Question 25. Tell Me What Is Meant By Public Accounting?

Public accounting will be seen as corporations of accountants that serve shoppers reminiscent of companies (retailers, producers, service firms, and so on.), people, nonprofits and governments. The companies offered by public accounting corporations will fluctuate by the scale and the experience of the agency.

Here are among the public accounting companies:

preparation, overview, and auditing of the shoppers’ monetary statements
tax work together with the preparation of earnings tax returns, and property and tax planning
consulting and recommendation involving accounting techniques, mergers and acquisitions, and way more
The folks employed in public accounting are sometimes licensed public accountants or CPAs. Many accountants depart the bigger public accounting corporations after a number of years of expertise and grow to be an worker of a single business. In their new place they are going to be known as a personal accountant, company accountant or inside accountant.
Public accounting corporations vary in measurement from tens of hundreds of small native corporations to some large worldwide corporations using a whole lot of hundreds of CPAs all through the world.
The positions in public accounting typically encompass workers, senior, supervisor and companion.

Question 26. Explain What Are Bills Receivable?

Bills Receivable , in service provider accounts, are all promissory notes, payments of trade, bonds, and different evidences or securities which a service provider or dealer holds, and that are payable to him.

Question 27. Tell Me What Is Depreciation And How Many Types Are There. Please Give Details?

Depreciation and its sorts: Depreciation means lowering/decreasing worth of an asset due to its use. Like machines/autos will get rusty/gradual due to constant use.

Question 28. Tell Me What Is Computerized Accounting?

Accounting is the strategy during which monetary info is gathered, processed, and summarized into monetary statements and stories.

The objective of accounting is to offer info utilized in decision-making. Accounting could also be seen as a system (a course of) that converts information into helpful info.

Information processes embody:

  • Recording
  •  Maintaining
  •  Reporting

Every business has quite a few processes. Some are easy, others complicated and cumbersome. However, because the business grows, acquires new prospects, enters new markets, and retains tempo with fixed adjustments in statutory rules… the corporate might want to keep extremely correct and up-to-date accounting, stock, and statutory information.

This is the place a computerized accounting helps simplify, combine, and streamline all of the business processes, cost-effectively and simply.

Question 29. Explain What Is Retail Banking?

Retail banking refers back to the banking achieved with the retail consumer (e.g. the traditional folks) reasonably than business or organizational prospects.

Question 30. Explain What Is Marginal Cost?

The marginal price of an extra unit of output is the price of the extra inputs wanted to supply that output. More formally, the marginal price is the by-product of complete manufacturing prices with respect to the extent of output. Marginal price and common price can differ vastly.

For instance: suppose it prices $1000 to supply 100 models and $1020 to supply 101 models. The common price per unit is $10, however the marginal price of the 101st unit is $20The Econ Model purposes Perfect Competition and Monopoly emphasize the roles of common price and marginal price curves. The brief film Derive a Supply Curve (40 seconds) reveals an excerpt from the Perfect Competition presentation that derives a provide curve from revenue maximizing habits and a marginal price curve.

Question 31. Tell Me What Is Executive Accounting?

Executive Accounting is designed for service kind companies that require a classy accounting system, but easy to make use of accounting system. Executive Accounting accommodates many superior options reminiscent of three types of invoicing (service, distribution and recurrent), multi-currency capabilities, a number of checking account capabilities and different highly effective options. Executive is a single-user system that may be upgraded to a vast variety of customers.

Question 32. Tell Us How To Prepare Finalization Accounts?

First, of all post all of the journals within the ledger after which post within the trial stability and from that put together buying and selling account and manufacturing account (if mandatory) and revenue and loss account. And then put together revenue and loss adjustment account and with the assistance of the trial stability put together stability sheet and in addition present the revenue underneath reserves after deducting the earlier 12 months losses and present contingencies (if any) within the notes to accounts.

Question 33. Explain What Is The Basic Accounting Equation?

Accounting Equation- Accounting rotates round three fundamental phrases. These phrases are property, liabilities and capital. the true relationship between these phrases is represented as Acconting Equations ie..

Assets= liabilities+ Capital.

Question 34. Explain Why Are Accounting Standards Necessary?

Accounting requirements are mandatory to advertise top quality monetary reporting. The elementary function of accounting is to speak financial details about companies and different group to varied stakeholders together with authorities, traders, shareholders, suppliers, lenders, prospects, and the general public. These stakeholders use such info to take selections and to evaluate the stewardship of individuals appointed to handle such organizations. If this info weren’t of a top quality customary, then the stakeholders could be unable to take efficient selections that can profit them. For instance, if a monetary report have been manipulated to indicate larger income, traders would maintain on to their shares with the idea that the corporate is doing effectively.

Accounting requirements got here to be developed from the mid sixties onwards to advertise the integrity of the accounting career by means of making certain uniformity in the best way accountants report transactions of their books and of their preparation of the ultimate accounts of companies. This is basically aimed toward boosting the boldness of stakeholders, notably shareholders and potential traders within the accounting career.

Good and helpful info ought to have the important traits of understandability, comparability, relevance, and reliability with a purpose to play its function successfully.

Accounting requirements serve to advertise the understandability, comparability, relevance, and reliability of economic stories.

Question 35. Tell Me How Many Accounting Standards Are Currently Published?

Accounting Standards are formulated with a view to harmonise completely different accounting insurance policies and practices in use in a rustic. The goal of Accounting Standards is, due to this fact, to scale back the accounting options within the preparation of economic statements throughout the bounds of rationality, there by making certain comparability of economic statements of various enterprises with a view to offer significant info to varied customers of economic statements to allow them to make knowledgeable financial selections.ICAI issued a complete of 33 accounting requirements.

Question 36. Explain What Are The Disadvantages Of Back-flush Accounting?

One of the principle disadvantages of the system is that it solely works underneath some fairly strict necessities. If these usually are not met, the system will grow to be unbalanced and could also be fairly unusable, or a nightmare to take care of.

Standard prices should be reliably estimated and variances saved to a minimal. The premise of the system is {that a} sale triggers the manufacturing course of, due to this fact buildup of labor in progress or completed items must be prevented Another downside is that detailed info for administration functions is probably not obtainable the place wanted, and the manufacturing management due to this fact must be all of the stronger. The price accounts utilized in back-flush accounting could also be harder to reconcile to monetary accounts wanted for reporting.

Question 37. Tell Me What Is Bank Reconciliation Statement?

A Bank reconciliation statements are ready if stability of checking account as proven in cashbook differs from stability as proven in passbook. This assertion reveals the explanations or transactions due to which balances as proven in cashbook and passbook usually are not tallying with one another.

Question 38. What Is Service Tax & Excise? How Will It Be Charged?

Service Tax is a Indirect Tax which is levied on Service. The Service receiver can pay to the service supplier.

Ex: Servicing a Vehicle, Delivering items, outsourcing companies. and so on.

Excise Duty can be a type of Indirect Tax however that is imposed on Goods or manufacturing Items.

Ex: Steel, Cement, costume Materials, and so on

Question 39. Explain What Are The Fictitious Assets?

These are like intangible property, which can’t be seen or touched. Actually, these usually are not property however some expenditure, which can not flip to revenue and loss account of a selected interval that’s the reason these things are proven on property aspect of stability sheet to be written off to P&L account in cheap years.

Question 40. Explain What Is A Difference Between Public And Private Accounting?

Public accounting consists of any accounting work that an organization performs for one more firm. Examples could be audits, tax compliance, consulting, and so on. The “Big 4” (KPMG, Deloitte & Touch?Price Waterhouse Coopers, and Ernst & Young) are the dominant corporations that present public accounting companies.

Private accounting is accounting work that’s achieved in your personal firm. Every firm has some type of an inside accounting division and people staff could be thought-about non-public accountants.

Question 41. Tell Me Where Should Tds Received Should Show In Balance Sheet?

TDS both will be deducted by different on fee/earnings we obtain or we deduct on paymnet/expenditure we make to others.

In first occasion TDS can be proven in Assets aspect in stability sheets underneath present property and in second occasion TDS can be proven in stability sheet underneath present legal responsibility.

TDS is a part of advance tax for the deductee whereas for deductor its present legal responsibility.

Question 42. Do You Know What Does The Abbreviation Dr Mean In Accounting?

‘Dr’ means Debere in Latin stands for ‘what is available in’ or in easy phrases no matter property the business owns or the bills it has to pay comes underneath debit.

While ‘cr’ means credere in Latin means ‘what goes out’, in easy phrases no matter liabilities business owns, or the earnings it earned through the 12 months comes underneath credit score.

Question 43. Tell Me What Do You Mean By Material Facts In Accounting?

Material reality in accounting is that we make entry of each materials factor like stationary and so on however that ought to be when it comes to money.

Question 44. Tell Me Your Views On Creative Accounting?

All accounting ought to be artistic accounting. It’s not only a matter of crunching numbers. It’s about ensuring these numbers work as finest they’ll. A superb accountant is not afraid to be artistic. He or she comes up with revolutionary options to make the numbers work.

Question 45. What Is The Difference Between Perpetual & Periodic Inventory Systems?

In perpetual stock system, the stock account is adjusted frequently all through the accounting interval.

Whereas within the Periodic Inventory System: – Recording stock transactions periodically than recording them frequently.

Question 46. Explain What Is The Dual Aspect Concept?

Dual side idea: Each transaction has two sides. Example: once you purchase a shirt, then shirt involves you whereas money leaves you equally in the event you promote the identical shirt to anybody then money involves you whereas shirt leaves you. Recording each points of coming and going known as twin side idea.

Question 47. Tell Us What Is Important To Effective Market Analysis?

Generally talking, it is very important do analysis frequently in relation to each particular person consumer or class of shoppers. Effective analysis assesses present conditions to venture future developments and alternatives for the corporate. It research opponents and proposes enhancements.

Question 48. Tell Me What Is The Difference Between Inactive Accounts And Dormant Account?

Dormant accounts are these accounts during which there are transactions within the current historical past (the stipulation might fluctuate in response to the corporate’s guidelines). Inactive accounts are these accounts during which transactions are being made for very long time.

Question 49. Tell Me What Is Departmental Accounting?

Departmental accounting means account ready individually for the division and right here ledgers can be opened trial stability can be ready, additionally p&l account can be ready, and revenue or loss is included in the principle p&l account and proven within the stability sheet.

Question 50. Do You Know What Is Tally Accounting?

Tally is a monetary accounting software program package deal designed by Tally Solutions primarily for small companies and retailers. They declare on their web site that Tally is utilized by over 2 million customers, in over 90 international locations. Tally 9.zero is the newest model so far.

Question 51. Can You Tell Me What Makes A Successful Account Manager?

Speak confidently when answering questions the place success is the topic. You wouldn’t have to gush and describe each potential side you may consider. Talk about a couple of key ideas, like communication and negotiation expertise, market analysis and buyer prospecting, and so on. You will make a good higher impression in the event you give an instance from your personal skilled life to reveal your concept.

Question 52. What Is Cost Accountancy? What Are The Objects Of Cost Accountancy?

Cost accountancy is the appliance of costing and value accounting ideas, strategies and strategies to the science, artwork and apply of price management and the ascertainment of profitability in addition to the presentation of data for the aim of managerial resolution making.

Following are the objects of Cost Accountancy:

  • Ascertainment of Cost and Profitability
  •  Determining Selling Price
  •  Facilitating Cost Control
  •  Presentation of data for efficient managerial resolution
  •  Provide foundation for working coverage
  •  Facilitating preparation of economic or different statements.

Question 53. Tell Me What Is Cash System Of Accounting?

This system information solely money receipts and funds. This system assumes that there aren’t any credit score transactions. In this technique of accounting, bills are thought-about solely when they’re paid and incomes are thought-about when they’re truly acquired. This system is utilized by the organizations that are established for non revenue objective. But this technique is taken into account to be faulty in nature because it doesn’t present the precise income earned and the present state of affairs of the group.

Question 54. What Are The Various Systems Of Accounting?

There are two techniques of Accounting:

1) Cash System of Accounting: This system information solely money receipts and funds. This system assumes that there aren’t any credit score transactions. In this technique of accounting, bills are thought-about solely when they’re paid and incomes are thought-about when they’re truly acquired. This system is utilized by the organizations that are established for non revenue objective. But this technique is taken into account to be faulty in nature because it doesn’t present the precise income earned and the present state of affairs of the group.

2) Mercantile or Accrual System of Accounting: In this technique, bills and incomes are thought-about throughout that interval to which they pertain. This system of accounting is taken into account to be ideally suited however it might consequence into unrealized income which could mirror within the books of the accounts on which the group must pay taxes too. All the corporate types of group are legally required to comply with Mercantile or Accrual System of Accounting.

Question 55. What Is Financial Accounting. What Are Its Characteristic Features?

Financial Accounting is the method during which business transactions are recorded systematically within the numerous books of accounts maintained by the group with a purpose to put together monetary statements. These monetary statements are principally of two sorts: First is Profitability Statement or Profit and Loss Account and second is Balance Sheet.

Following are the traits options of Financial Accounting:

1) Monetary Transactions: In monetary accounting solely transactions in financial phrases are thought-about. Transactions not expressed in financial phrases don’t discover anywhere in monetary accounting, howsoever necessary they might be from business standpoint.

2) Historical Nature: Financial accounting considers solely these transactions that are of historic nature i.e the transaction which have already taken place. No futuristic transactions discover anywhere in monetary accounting, howsoever necessary they might be from business standpoint.

3) Legal Requirement: Financial accounting is a authorized requirement. It is important to take care of the monetary accounting and put together monetary statements there from. It can be compulsory to get these monetary statements audited.

4) External Use: Financial accounting is for these people who find themselves not a part of resolution making course of relating to the group like traders, prospects, suppliers, monetary establishments and so on. Thus, it’s for exterior use.

5) Disclosure of Financial Status: It discloses the monetary standing and monetary efficiency of the business as a complete.

6) Interim Reports: Financial statements that are based mostly on monetary accounting are interim stories and can’t be the ultimate ones.

7) Financial Accounting Process: The course of of economic accounting will get affected as a result of completely different accounting insurance policies adopted by the accountants. These accounting insurance policies differ primarily in two areas: Valuation of stock and Calculation of depreciation.

Question 56. Can You Please Compare Financial Accounting And Cost Accounting?

1) Financial Accounting protects the pursuits of the outsiders coping with the group e.g shareholders, collectors and so on. Whereas stories of Cost Accounting is used for the interior objective by the administration to allow the identical in discharging numerous capabilities in a correct method.

2) Maintenance of Financial Accounting information and preparation of economic statements is a authorized requirement whereas Cost Accounting is just not a authorized requirement.

3) Financial Accounting is anxious concerning the calculation of income and state of affairs of the group as complete whereas Cost accounting offers in price ascertainment and calculation of profitability of the person merchandise, departments and so on.

4) Financial Accounting considers solely transactions of historic monetary nature whereas Cost Accounting considers not solely historic information but additionally future occasions.

5) Financial Accounting stories are ready in the usual codecs in accordance with GAAP whereas Cost accounting info is reported in no matter kind administration needs.

Question 57. Tell Me What Is Mercantile Or Accrual System Of Accounting?

In this technique, bills and incomes are thought-about throughout that interval to which they pertain. This system of accounting is taken into account to be ideally suited however it might consequence into unrealized income which could mirror within the books of the accounts on which the group must pay taxes too. All the corporate types of group are legally required to comply with Mercantile or Accrual System of Accounting.

Question 58. What Is Capitalization? What Is Its Importance?

Capitalization is a time period which has completely different meanings in each monetary and accounting context. Capitalization in accounting means the price to purchase an asset which is included within the worth of the asset whereas in monetary phrases it’s the price which is required to purchase an asset which incorporates worth of a selected asset and it additionally embody the retained earnings of an organization with inventory debt and long run debt.

There are two sorts of capitalization that are known as as Over-capitalization and one other known as as Under-capitalization. Capitalization could be very import side in figuring out the worth of the corporate available in the market which relies on the financial construction of the corporate. This side will depend on the earlier information and economics of the corporate. This additionally reveals a selected behaviour of the businesses’ construction and permits them to create a plan to do the marketing.


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