accounts jobs interview questions and answers - part 2

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   accounts jobs interview questions and answers - part 2
2. Question 31. Is An "account Receivable" And "goodwill" Real Accounts In Accounting?
   Answer :
   Real accounts, i.e. Balance Sheet accounts are ongoing perpetual records and represent "real" items; cash, receivables, inventories, accounts payable, invested capital, etc., etc. Accounts receivable and goodwill therefore are both real accounts as they have value in and of themselves.
   Nominal accounts represent items of income and expense. Nominal accounts have no balances at the beginning of an accounting period and change as various debits and credits are applied because of activity of income and expense throughout the accounting period. At the end of the accounting cycle, the nominal accounts are returned to zero by debiting them by an amount equal to their credit balance if such exists, or crediting an account if it has a debit balance. The offsetting entry of each of these is to a Profit or Loss Account. If after all accounts are zero, the P&L account has a debit balance then operations were profitable (income exceeded expenses), and conversely with a credit balance a loss was incurred. The P&L is then "closed" by either debited or crediting to bring it to zero, whichever is appropriate, with the offsetting entry going to "Retained Earnings", a real account, and bringing the Balance Sheet into balance and leaving all nominal accounts at zero.
3. Question 32. What Are The Items That Are To Be Debited In Accounting And What Are The Items That Are To Be Credited In Accounting?
   Answer :
   This depends on the nature of the account and the thing you wish to achieve. For example, to increase cash you would debit the cash account, but if you wanted to decrease it, you would credit it. There are all sorts of accounts and they have different normal balances.
   The thing to remember is that every journal entry must have equal debits and credits. So for example to increase a contra asset account like Allowance for Doubtful debts you would credit Bad Debt Expense to increase it and credit Allowance to increase that!
4. Question 33. Key Difference Between Indian Accounting Standards And International Accounting Standards Is?
   Answer :
   In international accounting LIFO and extraordinary items are prohibited.
5. Question 34. Is Push Down Accounting Accepted Under Generally Accepted Accounting Standards?
   Answer :
   Yes, in some cases. For example: The Federal Financial Institutions Examination Council (the "FFIEC") approved a reporting requirement, effective October 1, 1989, to use push down accounting in certain acquisitions of national banks, state member banks and insured state nonmember banks. This reporting requirement is an addition to the Glossary to the Instructions to the Consolidated Reports of Condition and Income ("Call Report").
6. Question 35. Is There A Difference Between Accounting For Conversion Of Bonds And Accounting For The Conversion Of Preferred Stock?
   Answer :
   Bonds have discounts and premiums and accrued interest. Preferred Stock does not.
7. Question 36. When A Company's Accounting Year-ends On A Day That Is Other Than The End Of The Calendar Year What Is Called In Accounting?
   Answer :
   Fiscal year
8. Question 37. What Is The Difference Between The Accrual Accounting And Cash Accounting?
   Answer :
   The Cash Basis of accounting reports only transactions that have been completed in the current reporting period - or - what has "hit" the checking account (assuming all funds are deposited and disbursed only from that account) - The Accrual Basis of accounting reports all transactions that the entity has entered into and includes the asset, liability, income and expense related them.
   In addition, the Cash Basis of accounting is considered OCBOA (Other Comprehensive Basis of Accounting ~ Other than GAAP) and the Accrual Basis (when implemented properly and fully) is considered GAAP (Generally Accepted Accounting Principles).
   EDIT - The Accrual Basis is more desirable from a user's standpoint as it includes transactions that may exist were completed after the report dates that were initiated prior to the report date. It is generally more complete and more reliable than the cash basis - however, that does assume that the person preparing the statements has expertise of, not simply a cursory working knowledge of, GAAP and the accrual basis. For example, a set of financial statements printed out of QuickBooks are not necessarily GAAP compliant (or correct) although they may appear to be at first glance or to a layperson.
9. Question 38. What Is The Difference Between Financial Accounting And Management Accounting?
   Answer :
   Very briefly, the difference has to do with the needs of the user.
   Management accounting for is the internal users of an entity and Financial Accounting is for the external users.
   Internal users (management) may be interested in the cost of making an item using process A versus process B. Whereas External users are mostly interested in the overall results of those management decisions.
10. Question 39. What Is The Distinction Between Cost Accounting And Management Accounting?
    Answer :
    Cost accounting is concerned with cost accumulation for inventory valuation to meet the requirements of external reporting and internal profit measurement.
    Management accounting relates to the provision of appropriate information for decision-making, planning, control and performance evaluation.
11. Question 40. What Is The Difference Of Cost Accounting And Financial Accounting?
    Answer :
    Financial accounting encompasses all account presented on the face of the financial statement, its presentation, recognition, measurement and disclosures. Where as cost accounting is only focused on the cost of inventory.
12. Question 41. Does The Accounting System Appear To Facilitate One Specialty From Financial, Auditing, Or Cost Managerial Or Tax Accounting Over The Others?
    Answer :
    The elegance of Accounting is that it is a purveyor of information, organized into systems, and exploited for a particular purpose. That is because Accounting is vague. Interestingly, information from accounting can be split into two methods: 1. Valuation 2. Evaluation
    1. Valuation - This is the type of information that financial/Tax/Cost accounting attempts to tackle. What is that worth? How much of it came from this source of value? What will be the asset be worth in ten years? All of these questions are valuation methods and accounting provides an informational standpoint from which to analyze these questions and ascertain an answer to them.
    2. Evaluation - This would be your classical managerial accounting. Did employee A provide hire effort? What should compensation look like? How are we performing? All are evaluation questions. Evaluation is especially important to Internal Audit and the control environment. You can easily image a professor conducting evaluation accounting to assign proper reward to students who exhibit learning through testing.
13. Question 42. What Are The Effects Of International Accounting Standards On Accounting Practices Of Developing Nations?
    Answer :
    Adoption of international accounting standards is extremely costly. Developing counties usually use accounting standards that are most beneficial to them (based on who they trade with to ease accounting for transactions) or just another country's GAAP that works for the developing country. Ex. Mexico very closely resembles U.S. GAAP because of NAFTA and the quality of U.S. GAAP.
    Should IFRS be implemented in developed counties, developing counties might be forced to adopt them as well in order to maintain trade relations. This could be extremely costly for smaller developing counties.
14. Question 43. Where The Financial Accounting Fails The Cost Accounting For Is Rescue But Still There Are Some Limitations Deficiencies In The System?
    Answer :
    Accounting has been a part of today's life in today's environment and it has to be given more progress because it is very important.
15. Question 44. What Is The Difference Between Cost Accounting Management Accounting And Financial Accounting?
    Answer :
    For simplistic purposes, there is not much, if any, difference between "cost accounting" and "management accounting". These terms refer to the accounting techniques used internally by a company's management to determine the costs of running the business and help in decision making. For example, reports that compare budgeted to actual expenses are commonly used to monitor the successful management of a specific department or store within a larger enterprise.
    Financial Accounting refers to accounting practices that result in financial statements used by various stakeholders of the business. Stakeholders may include management and employees, as well as vendors, suppliers, customers, bankers and regulators. The accounting practices used in compiling financial statements are referred to as "GAAP" or the generally accepted accounting principles as set forth by the Financial Accounting Standards Board in the U.S. In the U.S., external financial reports issued by public and/or regulated companies must comply with GAAP.
    Some accounting methods used in cost accounting are not recognized by GAAP and therefore can only be used internally.
16. Question 45. What Is The Relationship Between Cost Accounting Financial Accounting And Managerial Accounting?
    Answer :
    Financial accounting relates to the information presented based on past events and records.
    Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends.
    Financial accounting relates to the information presented based on past events and records.
    Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends.
17. Question 46. What Do You Consider To Be The Biggest Challenge Facing The Accounting Profession Today?
    Answer :
    A sample answer to accounting interview questions like this is:
    In response to the changing market accountancy professionals have to provide more management and consulting services, in addition to financial management. They have to assume a greater advisory role and develop more complex and flexible accounting systems.
    Then continue to explain how you can meet this challenge.
18. Question 47. Describe Any Accounting Process That You Have Developed Or Revised?
    Answer :
    Highlight how you have monitored and analyzed work processes to develop more efficient procedures and use of resources while still maintaining accurate and quality work outputs.
19. Question 48. Give Me Examples Of The Accounting Reports You Have Prepared?
    Answer :
    Demonstrate your experience in maintaining accounting principles, practices and procedures to ensure accurate and timely financial statements and reporting. Discuss your ability to meet tight deadlines and undertake a multitude of accounting activities. Show your understanding of generally accepted and statutory accounting principles.
20. Question 49. Describe The Advantages And Disadvantages Of The Different Accounting Packages/ Systems You Have Used Recently In Your Accountant Jobs?
    Answer :
    Focus on how the packages supported and simplified company specific processes, and how they met your exact business requirements. Display your knowledge of how the packages differ in areas such as price, complexity and functionality.
21. Question 50. Which Accounting Applications Are Your Familiar With?
    Answer :
    Discuss the applications you have worked with. Focus on how you implemented the application, the steps taken during the conversion and integration of the accounting system and the training of staff to use the application.
22. Question 51. What Are The Most Important Goals Of Accounts Receivable?
    Answer :
    These goals will depend on the needs of the organization. Show how you are aware of organizational needs and then identify the appropriate goals to meet them. Demonstrate a thorough understanding of what the goals express and how they support department and company objectives. Common aspects include positively impacting on company cash cycle, increasing cash flow, reducing DSO, reducing bad debt and write offs.
23. Question 52. What Information Is Included In A Bill For Services?
    Answer :
    List the information, make sure you cover everything and highlight your attention to detail. Include a sample of a bill for service that you created in your interview portfolio.
24. Question 53. What Software Applications Have Your Used For Accounts Receivable?
    Answer :
    List the applications you have used and expand on the value of the solutions they offered to your particular company. Look at aspects such as tracking transactions, assessing late payments, creating past due notices and printing out relevant reports.
25. Question 54. What Role Did You Play In Collections?
    Answer :
    Again focus on the skills and abilities you bring to the collections function. Demonstrate how you have used your good interpersonal skills, perseverance, ability to managing conflict, negotiation skills and communication ability for successful collections.
26. Question 55. Detail Your Responsibilities In Accounts Receivable?
    Answer :
    Discuss all your responsibilities. Focus on the skills and knowledge you used to perform these functions efficiently such as maintaining a high level of accuracy, good verbal and written communication skills, strong organizational skills, problem-solving skills, computer skills and a knowledge of accounting processes.
27. Question 56. What Accounts Payable Applications Are Your Familiar With?
    Answer :
    With accounting job interview questions like this first list the applications you have used and then expand on the value of the solutions they offered to your particular business. Look at aspects such as managing vendor information, approval controls and providing payable reports.
28. Question 57. Explain The Accounts Payable Cycle?
    Answer :
    Demonstrate your knowledge of this cycle - the length of time it takes the company to pay its accounts payable - and what the implications of the length of this cycle are for the company, for example cash flow.
29. Question 58. Have You Ever Been Involved In An Invoice Dispute? How Did You Manage The Problem?
    Answer :
    Accounting job interview questions like this explore your conflict management skills. Emphasize your interpersonal skills, your maturity and your ability to stay calm in the face of difficulty. Describe the techniques you use to diffuse disputes such as asking questions to determine the reason for the dispute, not conveying blame and not becoming too emotional. Demonstrate your ability to work together with others to reach an acceptable resolution.
30. Question 59. Tell Me About An Invoice Discrepancy You Discovered And How You Resolved It?
    Answer :
    Be specific about the type of discrepancy. Discuss the steps you took to identify and sort it out such as obtaining and checking the original order. Focus on the skills required to resolve the discrepancy such as attention to detail, problem analysis and problem resolution.
31. Question 60. What Information Do You Require Before You Approve An Invoice For Payment?accounts jobs interview questions and answers - part 2
    Answer :
    Focus on your monitoring and checking skills. Demonstrate your understanding of the documentation required for verification before payment is made.