What do you mean by financial accounting?

Financial accounting refers to summarizing and gathering financial data plan to

arrange financial reports such as income statement, the balance sheet for the
organization’s management lenders, suppliers and other stakeholders.

Define the skills that are needed for an accountant job role?
Skills required to work as an accountant are:
Prepared work style
Excellent at math’s 
Ability for technology 
Strong analytical skills

Name some accounting software?

Some of the accounting software:
Tally
FreeAgent
FreshBooks
Sage 50 cloud
Zoho Books etc.

How many types of business transactions are there in accounting?

There are two types of business transaction:
Revenue
Capital

Define TDS? And where it is shown in the balance sheet?

TDS stands for Tax Deduction at Source. It is introduced to gather text from the
company from where the employee profits are generated. It is shown on the assets
part, right after the current head asset.

What do you mean by Tally Accounting?

It is the software utilized for accounting in small shops and business for running
routine accounting transactions.

Explain Departmental Accounting?

Departmental accounting is a kind of accounting in which a divided account is
created for departments. It is managed and shown separately in the balance sheet.  

Tell me the abbreviation for the accounting terms credit and debit?
The abbreviation term used for credit and debit are “dr” and “cr”
State the difference between inactive and dormant accounts?
Inactive accounts are the accounts that have been closed and will not be used
further, whereas dormant accounts are those that are not efficient today but may be
used in the future.

Define working capital?

Working capital is planned as current assets minus current liabilities, which is used
in day to day trading.  

How do you maintain accounting accuracy?

Maintaining the correctness of an organization’s accounting is a significant activity
as it can result in an immense loss. There are different tools and resources which can
be used to bound the potential for errors to sneak in and address quickly if any
errors do occur.

Differentiate between accounts payable and accounts receivable?

The main difference between accounts payable and receivable are:

Accounts payable: The amount a company owes because it purchased goods or

services on credit from a supplier or vendor. Also, accounts payable are liabilities

Accounts Receivable: The amount a company has the right to collect because it sold
goods or services on credit to a customer. Also, accounts receivable are assets. 

Tell me some common errors in accounting?

The standard errors in accounting are:  errors of commission, errors of principle,
errors of omission and compensating error.

Why do you think accounting standards are necessary?

Accounting Standards play a significant role in preparing an excellent and precise
financial report. It ensures dependability and significance in financial reports.

What are some of the ways to estimate bad debts?

Some of the admired ways of estimating bad debts are ageing analysis, percentage of
outstanding accounts and percentage of credit sales.

Define deferred tax asset and how is the value created?

A deferred tax asset is when the tax amount has been paid or carried forward but
has still not been documented in the income statement. The value is shaped by
taking the dissimilarity between the book income and the taxable income.

What is the equation for the Acid test ratio in accounting?

The equation for the acid test ratio in accounting is:
Acid-test ratio= (Current assets- Inventory)/ Current Liabilities

Name some popular accounting applications?

Some of the popular accounting applications are:
Microsoft accounting professional
CGram Software
Financial Force
Microsoft Dynamics AX

Can you explain the basic accounting equation?

Accounting is all about liabilities, assets and capital. Hence, its equation can be
summarized as:
Assets= Liabilities + Owners Equity

Name the different branches of accounting?

The three different branches of accounting are:

Cost Accounting

Financial Accounting
Management Accounting

Define retail Banking?

Retail banking includes a retail client, where particular customers use local branches
of better commercial banks.

What do you mean by trade bills?

These are the bills generated against every transaction. It is a part of the
documentation process for all kinds of transactions.

What is the scrap value in accounting?

Scrap value is the remaining value of an asset that any asset holds after its
predictable lifetime.

Do you know about the golden rules of accounting?

There are three golden rules in accounting:
Debit what comes in, credit what goes away
Debit the receiver, credit the giver
Debit all expenses and losses, credit all incomes and gains

What are the premises?

Premises refer to fixed assets obtainable on a balance sheet.
So, these are some of the top accounting interview questions & answers
for accounting jobs; candidates need to prepare well and get the job in hand easily.