81) What is the equation for Acid-Test Ratio in accounting?
The equation for Acid-Test Ratio in accounting
What Is Your Technical Experience With Accounting Software?
The interviewer will ask this question to assess your experience using accounting tools and software in your day-to-day work. Bonus points if you have experience using the specific software that the company you’re interviewing with uses. Some companies use common industry software while others might have customized software—this varies by company size and industry.
61) List down important cost control techniques
Important cost controlling techniques are:
94) What is the difference between depreciation and amortization?
The difference between depreciation and amortization is:
|Depreciate means to lose the value of an asset due to its usage, wear, and tear, outdated, etc.||Amortize means to write off or pay the debt over a period of time.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.|
8) What is the balance sheet?
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.
77) Where do generally accruals appear on the balance sheet?
Accrued expenses usually tend to be extremely short-term. So you would record them within the “current liabilities section” of the balance sheet.
76) What is reversing journal entries?
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.
64) List the three basic elements of cost
The three basic elements of cost are 1) Material, 2) Labour, and 3) Expenses.
What Accounting Processes Are You Most Familiar With?
Recruiters typically ask this question to get an idea of what type of functions you’ve performed within accounting—as it looks different from department to department and company to company—and how the work you’ve done is relevant to the work you would be doing in the new role.
55) List out the stages of double entry system
The stages of the double-entry system are: