Accounting Questions At Interview

82) List out things that fall under intangible assets

Things that fall under intangible asset are:

  • Patents
  • Copyrights
  • Trademarks
  • Brand names
  • Domain names
  • 104) Explain nominal accounts with example

    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.

    35) Define a company’s payable cycle

    It is the time required by the company to pay all its account payables.

    Retail banking is a type of banking that involves a retail client. These clients are normal people and not any organizational customers.

    What Is Your Background Working in Various Industries?

    Recruiters want to see if your experience aligns with the companys size and industry, says Chris Robbins, Senior Talent Acquisition Specialist with Dixon Huges Goodman, a top 20 public accounting firm. Since accounting is such a vast profession, rules and processes differ across industries.

    56) What are the disadvantages of a double-entry system?

    The disadvantages of the double-entry system are:

  • If there are any compensatory errors, it is difficult to find out by this system
  • This system needs more clerical labor.
  • It is difficult to find errors if the errors are in the transactions recorded in the books.
  • The double-entry system is not preferable to disclose all the information of a transaction, which is not properly recorded in the journal.
  • 7) How many types of business transactions are there in accounting?

    There are two types of transactions in accounting, i.e., revenue and capital.

    28) Why accounting standards are mandatory?

    Accounting standards are mandatory because:

  • They play a crucial role in preparing good quality and accurate financial reports.
  • It ensures reliability and relevance in financial statements.
  • 79) Deferred taxation is a part of which equity?

    Deferred taxation is a part of the owner’s equity.

    Journal is a book that is maintained regularly for recording various financial entries.

    94) What is the difference between depreciation and amortization?

    The difference between depreciation and amortization is:

    Depreciation Amortization
    Depreciate means to lose the value of an asset due to its usage, wear, and tear, outdated, etc. Amortize means to write off or pay the debt over a period of time. Amortization can be for loans, or it can be for Intangible assets.
    The depreciation cost is calculated in terms of tangible assets like furniture, plant & machinery, building, etc. Amortization cost is calculated in terms of intangible assets like goodwill, trademark, loans, patents, etc.
    The purpose of calculating depreciation costs recovery The purpose of calculating amortization is also for cost recovery
    The easiest or better way to calculate depreciation is to know the loss of value of an asset over its life. Amortization calculates the amount spent after the intangible assets throughout the life for that asset.
    For example, a car worth $30,000 has estimated the lifetime of 10 years after that, it will have no value in the market. The cost or loss in value throughout these 10 years is known as depreciation For example, Pharmaceutical Company spent $20 million dollars on a drug patent with a useful life of 20 years. The amortization value for that company will be $1 million each year
    Various method for depreciation includes straight-line depreciation, declining balance method, group depreciation method, unit of time/production depreciation method, etc. Various method for amortization is negative amortization, zoning amortization, business amortization, etc.

    3 most frequently asked accounting interview questions

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