Accounting Interview Questions and Answers
Question - 21 : - What is the basic accounting equation?
Answer - 21 : -
Accounting is all about assets, liabilities, and capital. Therefore, the accounting equation is:
Assets = Liabilities + Owners Equity.
Question - 22 : - Define executive accounting
Answer - 22 : -
Executive accounting is a type of accounting that is specifically designed for a business that offers services to users.
Question - 23 : - Define public accounting
Answer - 23 : -
Public accounting offers audits and CPAs to review company financial records to ensure accountability. It is for the general public.
Question - 24 : - What is a CPA?
Answer - 24 : -
CPA stands for Certified Public Accountant. To become a CPA, one should have to do many other qualifications as well. It is a qualification with a 150-hour requirement. It means that one should complete 150 credit hours at an accredited university.
Question - 25 : - What is a bank reconciliation statement?
Answer - 25 : -
A reconciliation statement is prepared when the passbook balance differs from the cash book balance.
Question - 26 : - What is the basic difference between accounting and auditing?
Answer - 26 : -
Accounting is all about recording daily business activities. Auditing is the checking whether all these events have been noted down correctly or not.
Question - 27 : - Name different branches of accounting
Answer - 27 : -
There are three branches of accounting:
- Financial accounting
- Management accounting
- Cost accounting
Question - 28 : - Differentiate between consignor and consignee
Answer - 28 : -
Consigner is the owner of the goods, or you can say he is the person who delivers the goods to the consignee. The consignee is the person who receives the goods.
Question - 29 : - Define depreciation and its types
Answer - 29 : -
Depreciation can be defined as the value of an asset that is decreasing as it is in use. It has two types, such as:
- Straight line method
- Diminishing value method
- Annuity method
- Depletion method
- Written down value method.
Question - 30 : - Define bills receivable
Answer - 30 : -
All types of exchange bills, bonds, and other securities owned by a merchant that is payable to him are said as bills receivable.