Account Management Interview Questions And Answers

Debit abbreviation is “dr” and credit abbreviation is “cr”.

It is the software used for accounting in small business and shops for managing routine accounting transactions.

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 150 hour requirement; it means that one should complete 150 credit hours at any accredited university.

Project implementation involves six steps in total such as:

☛ Identify Need
☛ Generate and Screen Ideas
☛ Conduct Feasible Study
☛ Develop the Project
☛ Implement the Project
☛ Control the Project

All types of exchange bills, bonds and other securities owned by a merchant that is payable to him are said as bills receivable.

Provisions are the liabilities or the anticipated items such as depreciation. You can say provisions are expenses. Reserves are the profits of any company and a part of that profit is placed back to the business to keep it sustainable in tough times of a company.

As per fair value accounting, a company has to show the value of all of its assets in terms of price on balance sheet on which that asset can be sold.

☛ Recording of transactions in the journal
☛ Posting of journal entry in to the respective ledger accounts and then preparing a trial balance
☛ Preparing final accounts and closing of books of accounts

The unearned revenues falls under “Liability” account.

A deferred asset refers to a deferred debit or a deferred charge. An example of a deferred charge is bond issue costs. These costs involves all of the fees or charges that an organization incurs in order to register and issue bonds. This fees are paid in a near time when the bonds are issued but it will not be expensed at that time.

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

☛ Operating activities – business activities accounting to cash
☛ Investing activities – sale and purchase of equipment or property
☛ Financial activities- purchase of stock and own bonds
☛ Supplemental information- exchange of significant items that don’t involve cash

The equation for Acid-Test Ratio in accounting

Acid-Test Ratio = (Current assets – Inventory) / Current Liabilities

A Master Account has subsidiary accounts. A master account receivable could be anything, it could be account receivable for various individual receivable accounts.

Accrual Accounting is a method for measuring the performance and position of the company by identifying economic events regardless of when cash transaction happened. In this method, revenue is compared with the expenditures, at the time in which the transaction happens rather than when the payment is made.

There are three types of ledger

☛ General ledger
☛ Debtors ledger
☛ Creditors ledger

☛ Asset: What financial institute (bank) or people owe you
☛ Liabilities: It is something you owe people or organization
☛ Equity: It is something you own, for example, the amount of your house loan you paid off

Generally speaking, it is important to do research on a regular basis in relation to every individual client or category of clients. Effective research assesses current situations to project future developments and opportunities for the company. It studies competitors and proposes improvements.

This question asks you to show that you understand how to fulfill the duties of the position. Your response should include three parts:

Discuss three or four traits that contribute to an account manager’s success. You might describe the importance of market research, communication skills or the ability to negotiate.

Describe how those qualities can be beneficial when working with this specific company’s clients. If you have done your homework then you will know something about the accounts that they service, and can give specifics on how the traits you’ve described can help you to meet their customer’s needs.

Share experiences that illustrate that you possess these qualities. Outline an experience or achievement where you demonstrated the qualities you’ve listed in specific, quantifiable terms.

An account manager uses the information at his disposal to maintain and increase client interest. Staying current and doing marketing research are key factors to understanding what the customer is getting tired of and what he might become interested in. This information has to be effectively coordinated with the company departments in order to result in a product that will prevent the customer from leaving.

A ledger can be referred as an accounting book that keeps the record of journal entries in a chronological order to individual accounts. The process of recording this journal entries is known as posting.

Some asset accounts have a credit balance due to following reasons,

☛ Receiving and posting an amount that was higher than the recorded receivable
☛ Expenses occurred faster than the agreed upon prepayments
☛ An error caused by posting an amount to a wrong account
☛ The amount of checks written exceeded the positive amount in the Cash account
☛ Continuing to amortize or depreciate an asset after its balance has reached zero

☛ Wage accrual is entered with a credit to the “wages payable account”
☛ Interest accrual is entered with a credit to the “interest payable account”
☛ Payroll tax accrual is entered with a credit to the “payroll taxes payable account”

To adjust entries into account, you can sort entries into five categories.

☛ Accrued expenses: Expenses have been incurred but the vendors invoices are not generated or processed yet
☛ Accrued revenues: Revenues have been earned but the sales invoices are not generated or processed yet
☛ Deferred revenues: Money was received in advance of having been paid or earned
☛ Deferred expenses: Money was paid for a future expense
☛ Depreciation expense: An asset purchased in one period must be allocated to expense in each of the accounting periods of the asset’s useful life

When service or goods have been delivered, then revenues are reported in the accounting period.

Double entry book-keeping involves five types of accounts,

☛ Income accounts
☛ Expense accounts
☛ Asset accounts
☛ Liability accounts
☛ Capital accounts