Microsoft Accounting Professional is an accounting application that offers reliable and fast processing of accounting transactions. It also helps with financial analysis.
It is a statement that states all the liabilities and assets of the company at a certain point.
TDS stands for Tax Deduction at Source. It is introduced to collect text from the company from where the employee income is generated.
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.
Yes, both are different terms in accounting. Inactive accounts mean that accounts have been closed and will not be used in the future as well. Dormant accounts are those that are not functional today but may be used in the future.
It is the software used for accounting in small business and shops for managing routine accounting transactions.
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.
These are the assets that cannot be shown or touch. Fictitious assets can only be felt, such as goodwill, rights, etc.
In the perpetual inventory system, the accounts are adjusted on a continual basis. In this inventory system, the accounts are changed periodically.
There is a total of 33 accounting standards published by ICAI. The purpose of these standards is to implement the same policies and practices in any country.
Executive accounting is a type of accounting that is specifically designed for a business that offers services to users.
Public accounting offers audits and CPAs to review company financial records to ensure accountability. It is for the general public.
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.
Public accounting is a type of accounting that is done by one company for another company. Private accounting is done for your own company.
Accounting is all about recording daily business activities. Auditing is the checking whether all these events have been noted down correctly or not.
As the name implies, the dual aspect concept states that every transaction has two sides. For example, when you buy something, you give the cash and get the thing. Similarly, when you sell something, you lose the thing and get the money. So this getting and losing are two aspects of every transaction.
Purchase return is a term used to record every defective or unsatisfactory product returned to its supplier.
Material facts are the bills or any document that becomes the base of every account book. It means that all those documents, on which account book is prepared, are called material facts.
Retail banking is a type of banking that involves a retail client. These clients are normal people and not any organizational customers.
Not much knowledge, but the basic mathematical background is required in accounting for operations like addition, subtraction, multiplication, and division.
All types of exchange bills, bonds, and other securities owned by a merchant that is payable to him are said as bills receivable.
Depreciation can be defined as the value of an asset that is decreasing as it is in use. It has two types, such as:
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.
Balancing means to equate both sides of the account, i.e., the debit and credit sides of an account must be equal/balanced.
You must be very good at statistics if you want to do well in accounting. Otherwise, with minimum knowledge, you cannot manage your day to day transactions effectively in accounting.
It is the residual value of an asset. The residual value is the value that any asset holds after its estimated lifetime.
Marginal cost is defined as an increase or decrease in the cost of producing units or serving customers.
Provisions are the liabilities or the anticipated items, such as depreciation. In contrast, Reserves are the profits of any company, placed back to the business to keep it sustainable in tough times of a company.
Offset accounting is one that decreases the net amount of another account to create a net balance.
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.
A compound journal entry is just like other accounting entries where there is more than one debit, more than one credit, or more than one of both debits and credits. It is essentially a combination of several simple journal entries.
54) What are the rules for debit and credit for different accounts to increase the amount in your business accounts?
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.
62) Mention whether the account “Cash” will be credited or debited when a company pays a bill?
Accumulated depreciation is the total amount of depreciation that has been taken on a company’s assets up to the date of the balance sheet.
A deferred asset refers to a deferred debit or a deferred charge. An example of a deferred charge is bond issue costs. These costs involve all of the fees or charges that an organization incurs to register and issue bonds.
These fees are paid in a near time when the bonds are issued, but it will not be expensed at that time.
A bank reconciliation is a process done by a company. It ensures that the company’s records are correct and that the bank’s records are also correct. These records can be check register, balance sheet, a general ledger account, etc.
A deposit in transit is a check or cash that has been received and recorded by an entity. It should not yet been entered in the records of the bank where the funds are deposited.
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.
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.
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
74) What happens to the company’s “Cash Account” if it borrows money from the bank by signing a note payable?
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.
Accrued expenses usually tend to be extremely short-term. So you would record them within the “current liabilities section” of the balance sheet.
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.
A cash discount should be recorded in a journal entry as a reduction of expense in a cash account.
A Bad debt expense is the amount of an account receivable that is considered to NOT be collectible.
A master account has subsidiary accounts. A master account receivable could be anything, it can be account receivable for various individual receivable accounts.
The unpresented cheque will get recorded as a credit to the cash account in the company’s General ledger.
Accrual Accounting is a method for measuring the performance and position of the company by identifying economic events.
In this method, revenue is compared with the expenditures at the time in which the transaction occurs rather than when the payment is made.
Account payable is referred to as the amount the company owes to its suppliers, its employees, and its partners. In other words, it is the basic cost levied on the company to run a business process that is outstanding.
Long-term notes payable or liabilities are referred for that loan that is not supposed to due for more than a year.
These are the loans from banks or financial institution that are secured against various assets on the balance sheet, such as inventories.
Working capital is a financial metric that calculates the resources available to the company to finance its day-to-day operations. It is typically calculated by deducting current liabilities from current assets.
A ledger can be referred to as an accounting book that keeps the record of journal entries in chronological order to individual accounts. The process of recording this journal entries is known as posting.
GAAP means Generally Accepted Accounting Principle; it is a framework of accounting, standards, procedures & rules determined by the professional accounting industry and practiced by publicly traded U.S companies all over the U.S.A.
Double-entry accounting is an accounting system that requires recording business transactions or events in at least two accounts. It is the same concept of accounting, where every debit account should be matched with a credit account.
For example, if a company takes a loan from a bank, it receives cash as an asset, but at the same time, it creates a liability for a company.
This single entry will affect both accounts, the asset accounts, and the liabilities accounts. It is referred to as double-entry accounting.
A standard journal entry includes, date of the business transaction, the name of the accounts affected, amounts to be debited or credited, and a brief description of the event.
Liability can be defined as an obligation towards another company or party. It may consist of delivering goods, rendering services, or paying money. They are the opposite of assets, and it may include:
Equity is something you own, for example, the amount of your house loan you paid off.
A nominal account is a type of account that contains income and expenses. For example, wages account, salary account, etc.
Double-entry bookkeeping is a principle of accounting where every debit entry has a corresponding credit. Therefore, the total debt is equal to the total credit.
Accounting transactions refer to the execution of the user program that contains a list of actions.
Creative accounting is a practice to create a picture that is not technically correct from the perspective of the intended user.
Accounting normalization is a process of removing items from the statement of income or balance sheet. Once the normalization process is done, the result shows the future earning capacity of the buyer.
Computerized accounting is a method in which financial information is collected, processed, and summarized into financial reports.
The purpose of this accounting is to provide information used for decision making. It can be viewed as a process that converts data into helpful information.
Vouching is a process of checking the voucher authentication maintain by the management using respective supportive documents.
The full form of EA is Enrolled, Agent. It is a tax advisor who has unlimited practice rights. EA represents as a taxpayer and collects and audits, financial transactions.
The term payroll is defined as a list of employees who get paid by the organization. It refers to the money employer pays to their employees.
A non-performing asset is an account of borrower, that has been classified by a financial institution or bank. It should be as per guidelines given by RBI.
Fixed asset are assets which are tangible in nature. It is not used to sell in the near future and from which future benefits are derived.
BEP or Break Event Point can be defined as a situation in which the company neither gets profit nor no loss. It involves the activity in which total revenues equal total costs.
The cost sheet is a cost statement of product for a specific period of time. It contains direct and indirect expenses involved in producing a product.
A chargeback is a process in the industry where wholesaler request amount, which is the difference between the price of manufacture and wholesaler.
CMMI stands for Capability Maturity Model Integration. It is an approach to improve the organization’s approach to get the essential elements of the process.
CMM is a standard for measuring the maturity of a company’s software development processes. It is judged by IT service providers to deliver high-quality software.
The cost sheet contains both direct and indirect expenses incurred in producing any product. The classifying the expenses incurred based on administration, office, distribution, and selling overheads.
Candidate can answer the question of interviewer like, the difference between internal audit and statutory audit is:
Billable expenses are the expenses incurred by the seller on behalf of the customer in performing service or duties.
What is a subsidy?
There are certain government policies and offerings that can help businesses grow and prosper. It is important to know what these policies and offerings are so that they may capitalise on them for better results. You can describe what a subsidy is and how it benefits businesses.
Example answer: A subsidy is a type of financial aid or concession offered by the government to individual entities or businesses. The government may do this to help the business continue to offer products at subsidised rates and prevent price hikes. Sometimes, they do it to offset the negative impact of an economic crisis or market fluctuations.
What is a capital asset?
Like liquid assets, capital assets are equally crucial in running a business smoothly. The interviewers want to know if you are aware of what represents capital assets and how they are beneficial for the company. Give examples of some capital assets in your answer.
Example answer: Capital assets are those assets that can be used to make more money. These can be financial assets, tangible assets, human capital and brand capital. Companies can easily liquidate financial assets into cash or cash equivalents. Tangible assets include the machinery and the factory where the product gets manufactured. Human capital includes the human resources or people who work for the company. Brand capital is the anticipated value of a brand based on its recall and recognition.
What is the role of a public relations department?
There are various departments that assist in the smooth functioning of business operations. Every department has a unique role to play, but they work in conjunction and coordination with each other. You can describe what a public relations department does with some examples of their duties.
Example answer: A public relations department has a crucial role to play in the image management of a company. They manage media relations, handle publicity, answer public enquiries, coordinate conferences and track and assess media coverage. They also manage guest relations, visit agendas and tours, prepare brochures and other communications materials and marketing publicity.
How did the interview impress you?
“What are your thoughts about telemedicine?”
“What I knew about OMM”
“Vaccinations: how would you address the problem, communicate with an unvaccinated patient, address other concerned parties”
“What would you do if your patient refused to vaccinate herself and her infant (if youre a primary care physician)?”
“If you had to create a project that involved the entire class, and everyone had to participate in the project, how would you get your fellow students to participate?”
“My opinion on virtual medicine”
“How do you feel that your experiences will benefit Las Cruces and the state of New Mexico?”
“What would this project be that involves the entire class?”
“Which is better, MD or DO”
“I cant really say this particular question because it is pertinent to me and it would give who I am to the school- All i could say is review your application, secondary, and optional exhibits and be prepared to answer any questions that is pertinent to you.”
“What region of New Mexico do you feel best suited to live in for your clinical years, given the illegal immigrant population in Las Cruces, the homeless population in Albuquerque, or the native population on the reservation?”
“Do you have a favorite poet?”
“Whether medicine is based on curiosity or desire to help people.”
“The questions that was most pertinent to me.”
“What region of New Mexico do you feel best suited to live in for your clinical years, given the illegal immigrant population in Las Cruces, the homeless population in Albuquerque, or the native population on the reservation?”
“Can you name a culture that finds direct eye contact disrespectful?”
“What does it mean to be a professional lol.”
“Is insurance a right or privilege (or something along the lines like that)?”
“What region of New Mexico do you feel best suited to live in for your clinical years, given the illegal immigrant population in Las Cruces, the homeless population in Albuquerque, or the native population on the reservation?”
“Reading up on the history of the school, and reading my own application”
“Practicing some basic questions such as “Why medicine?”, verbalizing them to myself to hear how it sounds”
“This website and other online resources”
“I didnt. I looked up some general information about the school and the history of the area, but that was about it. I didnt have any of the tenets of Osteopathic Medicine memorized (although some people did get asked this question). I also made sure to be able to clearly explain to them if I didnt have an answer and what I could do to find the answer.”
“SDN, talking to current students, and mock interviews”
“Reading SDN and its forums (from past and current cycles), Utilizing the career development center from my school”
“Memorized tenets of osteopathy, learned about the mission of the school”
“I reviewed the BCOM newsletter and the website.”
“The professionalism, comradery, and the positive atmosphere.”
“Questions felt pretty accessible, felt like interviewers were trying to get to know me”
“Very friendly, from students to staff”
“Both staff and students were very friendly.”
“Really great residency placements and rotations.”
“How friendly everyone was! They created an environment that was very welcoming and low stress.”
“All of the students that came in and talked with us (>10), federal funding achieved, access to NMSU facilities (which are HUGE), solid gym, the town of Mesilla, close to Texas.”
“Staff and students are AMAZING! The building was very high tech and beautiful.”
“The facilities are brand spanking new. However, mostly, the students, faculty, and administration are extremely nice and welcoming! Average boards scores (from the inaugural class) was fine (in my book)”
“friendliness of students and faculty; very nice facilities”
“The school itself is beautiful and looks out onto this gorgeous mountain scenery. The golf cart tour of New Mexico State is very pleasant as well.”
“One of the interviewers felt like a tough nut to crack, but we built a connection by the end”
“The campus seemed a little small.”
“Can already tell that the school lacks transparency especially for a new program.”
“New school, currently low COMLEX scores, no COMLEX 2 scores posted yet.”
“I guess how small the building is but I don’t mind much”
“There are no close apartments or stores that is within walking distance around BCOM itself. Having a car will be kind of useful (for convenience sake). However, I believe living there without a car is do-able. There is transportation provided by NMSU.”
“how quickly they went through financial aid information”
“My interview felt very awkward. The interviewers asked very long, detailed questions, which became difficult to fully answer given their length and intricacy.”
“Go in with quiet confidence, if you got the interview youve earned your spot!”
“prepared for hypothetical type questions”
“This school REALLY is only looking for students who are willing to stay in the area.”
“I had a great experience there.”
“Looks like a solid program, appreciated the brevity.”
“Decent food, small group of attendees,”
“It felt more like a conversation than an interview for the majority of the time; They did grill me on one bad grade I received”
“Overall, the building is very nice and the curriculum shows a lot of promise. My interview was awkward, but that will vary significantly depending on who the interviewers are.”
Cash is king. The cash flow statement gives a true picture of how much cash the company is generating. That being said, it’s important to note that all three statements truly are required to get a full picture of the health of a company. Learn more about how the three financial statements are linked.
On the balance sheet, the asset account of inventory is reduced by the amount of the write-down, and so is shareholders’ equity. The income statement is hit with an expense in either COGS or a separate line item for the amount of the write-down, reducing net income. On the cash flow statement, the write-down is added back to operating cash flows as it’s a non-cash expense but must not be double-counted in the changes of non-cash working capital.
There are essentially four areas to consider when accounting for PP&E on the balance sheet: initial purchase, depreciation, additions (capital expenditures), and dispositions. In addition to these four, you may also have to consider revaluation. For many businesses, PP&E is the main capital asset that generates revenue, profitability, and cash flow.
The revenue recognition principle dictates the process and timing by which revenue is recorded and recognized as an item in the financial statements based on certain criteria (e.g., transfer of ownership). The matching principle dictates that the timing of expenses be matched to the period in which they are incurred, as opposed to when they are actually paid.
Negative working capital is common in some industries, such as grocery retail and the restaurant business. For a grocery store, customers pay upfront, inventory moves relatively quickly, but suppliers often give 30 days (or more) credit. This means that the company receives cash from customers before it needs the cash to pay suppliers. Negative working capital is a sign of efficiency in businesses with low inventory and accounts receivable. In other industries, negative working capital may signal a company is facing financial trouble.
FAQ
What are questions asked for BCOM students in interview?
- Q1. Tell us about yourself.
- Q2. What are your strengths?
- Q3. What are your weaknesses?
- Q4. What are your hobbies?
- Q5. What do you know about our company?
- Q 6. Do you have the tools to work from home?
- Q7. Why we should hire you?
- Q8.
What are the questions from commerce?
- What are liquid assets? …
- What is the purpose of audits? …
- What is a value-added tax? …
- What is a capital asset? …
- What is a subsidy? …
- What is the role of a public relations department? …
- What do you understand about equilibrium? …
- What is a futures market?
What are common accounting interview questions?
- 20 Most Common Interview Questions and Best Answers. …
- Tell me about yourself. …
- What were your responsibilities? …
- What did you like or dislike about your previous job? …
- What were your starting and final levels of compensation? …
- What major challenges and problems did you face?
