Inventory Accounting Interview Questions & Answers

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Executive Accounting is designed for service type businesses that require a sophisticated accounting system, yet simple to use accounting system. Executive Accounting contains many advanced features such as three styles of invoicing (service, distribution and recurrent), multi-currency capabilities, multiple bank account capabilities and other powerful features. Executive is a single-user system that can be upgraded to an unlimited number of users.

Accounting Departments are usually structured along functional lines: Accounts Payable, Accounts Receivable, Payroll, General Ledger, Sales Transactions, Inventory, etc. A small company may have one person performing more than one (sometimes all) of the functions. In this case, there needs to be financial controls to reduce the probability of theft or embezzlement. In a large company, there could be many people working in one functional area; and in that case, that function might be broken down to smaller components.

1) Manual records are very difficult to be maintained safe
2) Manual records are subject to greater human error
3) Business can see itself in fines and penalties if records are lost
4) Manual records are easier to be falsified, modified, altered, or vanished, as compared
to computerized records, which become very safe when using passwords, firewalls, and back-ups.

As an accounting professional in the state of Maryland, the requirements are 150 credit hours in order to sit for the CPA examination. The exam is given in 4 parts and all 4 parts can be taken separately. Once you have passed all 4 for parts of the exam, you will be qualified as a Certified Public Accountant.

Although the CPA exam is required for all states, the credit qualification may differ for your state. The department of labor and licensing for your particular state will have more information on the items needed in order to sit for the CPA exam.

As an accounting professional in the state of Maryland, the requirements are 150 credit hours in order to sit for the CPA examination. The exam is given in 4 parts and all 4 parts can be taken separately. Once you have passed all 4 for parts of the exam, you will be qualified as a Certified Public Accountant.

Although the CPA exam is required for all states, the credit qualification may differ for your state. The department of labor and licensing for your particular state will have more information on the items needed in order to sit for the CPA exam.

A method of accounting wherein the financial report of the subsidiary reflects the parents cost incurred in acquiring the sub.

Ratios place significant emphasis on short-term results. Ratios such as EPS and the ROCE are subject to accounting conventions that might deter businesses pursuing policies that are in their long-term interest.

The elements of accounting are Assets, Liabilities, and Owner Equities.
The way to remember this would be through the acronym ALOE
The accounting equation is Assets = Liabilities + Owners' Equities

Assets = Liabilities + Owners Equity

1. Collecting and Analyzing Data from the occurred transaction.

2. Journalize Transaction.

3. The general journal entries are posted to the General Ledger, which is organized by account.

4. Prepare an unadjusted trial balance .At the end of the period, double-entry accounting requires that debits and credits recorded in the general ledger be equal.

5. Prepare adjustments Period-end adjustments are required to bring accounts to their proper balances after considering transactions and/or events not yet recorded.

6. Prepare an adjusted trial balance: As with an unadjusted trial balance, this step tests the equality of debits and credits.

7. Prepare financial statements: Financial statements are prepared using the corrected balances from the adjusted trial balance.

8. Close the accounts: Revenues and expenses are accumulated and reported by period, a monthly, either quarterly, or yearly

9. Prepare a post-closing trial balance: fold: to determine that all revenue and expense accounts have been closed properly and to test the equality of debit and credit balances of all the balance sheet accounts.

There are total of 9 accounting standards.

Accrual Accounting refers to the recording of financial transactions once an economic event has happened and it is not based on the movement of cash.

For example, in Accrual Accounting if you have office rent of $1000 per month, you would record the expense of $1000 each month, regardless if you have actually paid the rent or received an invoice from the property owner.

Most individuals live our daily lives in the cash basis of accounting. We get our paychecks we have revenue, when we pay our car note we have expense.

Mutual fund sub accounting is a way to "clear" (the process of buying and selling) the mutual fund transactions. An intermediary record keeps all of the individual shareholder account information, such as the individual balances and individual transactions and dividends in each fund. The account balances roll up to match an omnibus account balance that is record kept by the transfer agent of the fund. When individual investors buy or sell a particular fund those transactions the intermediary combines those transactions and a minimum number of larger trades are placed with the fund in the omnibus account.

Source documents are those documents in which all kinds of business transactions are recorded. These include invoice, sales order, purchase order, debit note, credit note, goods received note; goods dispatched note, quotation, statement, remittance advice, and receipt.

★ Economic Entity Assumption
★ Going Concern Assumption
★ Monetary Unit
★ Periodicity Assumption

The interlocking accounting is a system where the cost and financial accounts are maintained independently of each other, and in the cost account, no attempt is made a separate record of the financial account transaction.

Threre are 3 types of golden rules in accounting:
1)personal accounting
2)real accounting
3)Nominal accounting

1.personal accounting refers to individuals or organisation or companises the rule of personal accounting debit the reciever credit the giver

2.real accountinf refers to tangible and intangible assets the rukle of real accounting debit what comes in credit what goes out.

3.Nominal accounting refers to all expenditure and income the rule of nominal accounting debit all expenses/losses credit income/gains

Peachtree Accounting is the name of a computerized accounting software program.

Accounting has to do with the company finances. Marketing has to do with company public relations, advertising, and product placement. The difference is accounting only deals with financial figures where marketing works on creating those figures.

SnapIt accounting was developed in South Africa by Joe Schoemann Systems.
System Analysis: Joe Schoemann
Programming: Danny Schoemann

Accounting records the events. Auditing is a process that checks to see whether the events occurred and it is properly recorded.

Generally, Luca Pacioli is considered the father of accounting. For more information about him and double entry system he developed.

For information, accounting field could be divided into a few branches, which is as follows:
i) Management Accounting
ii) Financial Accounting
iii) Taxation,
iv) Auditing

Management Accounting is consider a future prediction on the business cost which will be useful for the management (internal users) to make their decision, projection, planning and control their business activity.

The example of the M.A reporting consists of Sales Budget Report, Projection P & L for the year, Monthly Performance Review Report, etc.
The format is not standardized from one business to another and it will be more depending to the need and requirement of the company.

Financial statements are prepared to summarize all business activities by an enterprise during an accounting period in monetary terms & report financial outcomes in terms of performance, status of assets, liabilities, & flow of cash. These business activities vary from one enterprise to other on one hand and size & volume of business on the other hand. To compare the financial statements of various reporting enterprises poses some difficulties because of the divergence in the methods and principles adopted by these enterprises in preparing their financial statements. In order to make these methods and principles uniform, comparable, transparent, establish accountability, and bring true & fair view of Financial Statement - Accounting Standards are evolved.

The theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc.

A business can be a corporation, a partnership, or a sole proprietorship. A corporation is incorporated at the state level. A sole proprietorship is one person in business. A partnership is two or more persons with an agreement on who has which assets and liabilities and income. Partnership accounting is doing the books for the partnership. For IRS purposes, a partnership return must be filed each year.