Q: What is GST?

A: GST stands for Goods and Service Tax. It's an indirect tax other than the income tax. It charges on
the value of the service or product sold to a customer. The customer/clients pay the GST, and the
seller deposits the GST with the government. Some countries have sales, service tax with works
more or less the same as GST.

Q: How to define departmental accounting?

A: Departmental accounting is a type of accounting in which a separate account is created for

departments. It is managed separately as well, as shown independently in the balance sheet.

Q: What is the abbreviation of VAT?

A: The abbreviation of VAT is Value Added Tax.

Q: What is the basic accounting equation?

A: Accounting is all about assets, liabilities, and capital. Therefore, the accounting equation is:

Assets = Liabilities + Owners Equity.

Q: Define public accounting

A: Public accounting offers audits and CPAs to review company financial records to ensure
accountability. It is for the general public.

Q: What is a bank reconciliation statement?

A: A reconciliation statement is prepared when the passbook balance differs from the cash book
balance.

Q: What is the basic difference between accounting and auditing?

A: Accounting is all about recording daily business activities. Auditing is the checking whether all
these events have been noted down correctly or not.

Q: Define balancing in accounting

A: Balancing means to equate both sides of the account, i.e., the debit and credit sides of an account
must be equal/balanced.

Q: Define Scrap value in accounting

A: It is the residual value of an asset. The residual value is the value that any asset holds after its
estimated lifetime.

Q: Define offset accounting

A: Offset accounting is one that decreases the net amount of another account to create a net
balance.

Q: Define overhead in terms of accounting

A: It is the indirect expenditure of a company such as salaries, rent dues, etc.

Q: Define fair value in accounting

A: Fair value is the measurement of liabilities and assets according to the current value of the
market. It shows the estimated price at which any assets are sold. Liability shows third party
transactions under the current condition of the market.

Q: What is General ledger account?

A: The general ledger account is an account used to record all the information. It can be expenses
and income types that are recorded into separate accounts.

Q: List the three basic elements of cost

A: The three basic elements of cost are 1) Material, 2) Labour, and 3) Expenses.

Q: Explain real and nominal accounts with examples

A: A real account is an account of assets and liabilities. E.g. land account, building account, etc.

A nominal account is an account of income and expenses. E.g. salary account, wages account, etc.

Q: What is working capital?

A: Working capital is calculated as current assets minus current liabilities, which is used in day-to-day
trading.

Q: What is TDS? Where do you show TDS on a balance sheet?

A: TDS (Tax Deducted at Source) is a concept aimed at collecting tax at every source of income. In a
balance sheet, it is shown in the assets section, right after the head current asset.

Q: What is the difference between ‘accounts payable (AP)’ and ‘accounts receivable (AR)’?

A: Accounts Payable: The amount a company owes because it purchased goods or services on credit
from a vendor or supplier. Accounts payable are liabilities.

Accounts Receivable: The amount a company has right to collect because it sold goods or services on
credit to a customer.

Q: What is balance sheet

A: Balance sheet is a statement that displays all assets and liabilities of the company at a particular
period.

Q: What do you know about Excise or Service Tax?

A: It is a type of hidden tax contained in the service supplied by the service provider which is taken
care of by the service provider.

Q: What is balance sheet, income statement and cash flow statement?

A: The balance sheet shows a company’s assets, its liabilities, and shareholders’ equity. The income
statement outlines the company’s revenues and expenses. The cash flow statement shows the cash
flows from operating, investing, and financing activities.
Q: What’s the difference between deferred revenue and accounts receivable?

A: Deferred revenue represents cash received from customers for services or goods not yet
provided. Accounts receivable represents cash owing from customers for goods/services already
provided.

Q: What are common types of budget?

A: There are four common types of budgets that companies use: (1) incremental, (2) activity-based,
(3) value proposition, and (4) zero-based.

Q: Which is cheaper, debt or equity?

A: Debt is cheaper because it is paid before equity and has collateral backing it. Debt ranks ahead of
equity on liquidation of the business. There are pros and cons to financing with debt vs equity that a
business needs to consider. It is not automatically better to use debt financing simply because it’s
cheaper. A good answer to the question may highlight the tradeoffs if there is any followup
required. Learn more about the cost of debt and cost of equity.

Q: What is Free Cash Flow?

A: Free cash flow is simply equal to cash from operations minus capital expenditures

General Questions
Q: How do you minimize the risk for errors in your work?

Q: What do you typically do if you disagree with someone’s idea?

Q: How would you motivate a disengaged employee?

Q: What is one of your biggest weaknesses and how do you deal with it?

Q: What are some good things about failure?

Q: Which is more important in job – IQ or EQ?