Accounting Interview Questions and Answers
Question - 71 : - Where do generally accruals appear on the balance sheet?
Answer - 71 : -
Accrued expenses usually tend to be extremely short-term. So you would record them within the “current liabilities section” of the balance sheet.
Question - 72 : - What is reversing journal entries?
Answer - 72 : -
Reversing journal entries are entries made at the beginning of an accounting period to cancel out the adjusting journal entries. These entries are made at the end of the previous accounting period.
Question - 73 : - Which account is responsible for interest payable?
Answer - 73 : -
The account which is responsible or affected by the interest payable is “Current liability account.”
Question - 74 : - What happens to the company’s “Cash Account” if it borrows money from the bank by signing a note payable?
Answer - 74 : -
Due to double entry, the “cash account” will increase as such the liability account increases.
Question - 75 : - What are the activities that are included in the Cash Flow Statement?
Answer - 75 : -
The cash flow statement showcase the cash generated and used during the year or months. Various activities that are involved for the cash flow are
- Operating activities: Business activities accounting to cash
- Investing activities: Sale and purchase of equipment or property
- Financial activities: Purchase of stock and own bonds
- Supplemental information: exchange of significant items that don’t involve cash
Question - 76 : - What is the account receivable?
Answer - 76 : -
A short term amounts due from buyers to a seller, who have purchased goods or services from the seller on credit is referred to as account receivable.
Question - 77 : - What is an over accrual?
Answer - 77 : -
An over accrual is a condition where the estimate for an accrual journal entry is too high. This estimate may apply to the accrual of expense or revenue.
Question - 78 : - What is the equation for Acid-Test Ratio in accounting?
Answer - 78 : -
The equation for Acid-Test Ratio in accounting
Acid-Test Ratio = (Current assets – Inventory) / Current Liabilities
Question - 79 : - List out things that fall under intangible assets
Answer - 79 : -
Things that fall under intangible asset are:
- Patents
- Copyrights
- Trademarks
- Brand names
- Domain names
Question - 80 : - What is a trial balance in accounting?
Answer - 80 : -
In accounting, the trial balance is an accounting report that lists the balances in each of an organization’s general ledger accounts. This is done at the end of the posting journal entry to ensure that there are no posting errors.