government accounting test questions and answers pdf
This site uses cookies to store information on your computer. When you have completed the practice exam, a green submit button will Don’t forget to collect your bonus item at the end of this article! %PDF-1.4 The independent, non-political entity that oversees GAAP is the {Blank|]. If an account has a debit balance (e.g for an Asset a/c), then there will be a credit balance in its contra account. What is Debit Balance and Credit Balance? We have a collection of top finance and accounting interview questions compiled with real-life experiences and research with working professionals. There are six steps involved in project implementation, which are –. Revenue Recognition Principle – This principle suggests that the revenue should be recognized and recorded when it is realized and earned, no matter when the amount has been paid. 1 3. Questions like this one will reveal whether potential hires understand accounting fundamentals. Ans. Reduction in value by prorating the cost of an intangible asset over multiple accounting periods is called amortization. Ans. Here is our detailed article on Capital along with its Journal Entry here. It also helps in cumulating financial transactions and essential financial reports, which helps stakeholders in decision making. There are various tools and resources which can be used to limit the potential for errors to creep in and address quickly if any errors do arise. This type of expense is amortized. Ans. Also called net worth or owner’s equity, capital is the money brought in by the owner of the business as an investment to start the operations. Some of the popular ways of estimating bad debts are – the percentage of outstanding accounts, aging analysis, and percentage of credit sales. When a company is using double-entry accounting, what elements of a given ledger must be equal? Ans. This states that a company takes 3 days on average to clear all its pending invoices. %PDF-1.5 %���� Based on your results, we'll create a customized Test Prep Plan just for you! There are currently 41 Accounting Standards which are usually issued by the Accounting Standards Board (ASB). In this case, Samsung will record the estimated amount in their books of accounts as a Contingent Liability. A credit note is a receipt given to a buyer who has returned a product, by the seller/shop. Services. Of course, it is the abbreviation of the Institute of Chartered Accountants in India. The reduction in the value of a tangible fixed asset due to normal usage, wear and tear, new technology or unfavourable market conditions is called Depreciation. Closing stock is a part of purchases & trial balance already includes purchases, hence if the closing stock is shown as a separate item it will double count and result in an error. They are expenses and revenues that have been incurred or earned but have not been recorded in the books of accounts. to them later with the "Go To First Skipped Question" button. Amortization is only done for Intangible assets, unlike depreciation which is … You'll need realistic practice tests with lots of accounting questions, answers, and in-depth explanations. This term is popular in finance, advertising and public relations businesses. Ans. Dormant accounts are not currently functional but may be used in the future. ˆ ˘ ˘˘ ˙ ˘ˇ Yes, if it shows an unsustainable improvement in working capital and involves a lack of revenue going forward in the pipeline. What assets does the Balance Sheet show at the time the report was made. Example – A small-sized technology company Unreal Corp. spends 500,000 on R&D which is expected to sustain for 5 years so it may decide to amortize this & show 1,00,000 each year for 5 years in the financial statements. Advanced payment made for the company’s car which was on lease Rs, 1,00,000 on May 1, 2019. The first of our two-book series “Golden Book of Accounting and Finance Interviews – Part I” contains 20 additional finance and accounting interview questions including the ones in the above article. The two criteria for determining how transactions are reported are measurement focus and _____. Sciences, Culinary Arts and Personal This type of fund is the general operating fund for the government that is supported by tax revenues. It involves: All revenues – expenses (both operating and non-operating activities). Naukri Learning offers a list of  professional online accounting certifications and courses, which will make you an expert and improve your chances of acing any accounting interview that you go for. 8 0 obj Real – All assets in business either tangible or intangible classify as real accounts. Consignee – S/he is the recipient of the goods. These year-end tax planning strategies address recent tax law changes enacted to help taxpayers deal with the pandemic, such as tax credits for sick leave and family leave and new rules for retirement plan distributions, as well as techniques for putting your clients in the best possible tax position. back Later other transactions which took place in 2019 are: Ans. Ans. Example – Let’s suppose that Apple files a case of a patent violation on Samsung and Samsung not only realizes that it may have to pay for violations but also estimates how much in total. If all other sites open fine, then please contact the administrator of this website with the following information. The reason why you will never see depreciation being charged on land is that land has an infinite useful life. This list includes the most common interview questions used to hire for accounting jobs. A deferred tax asset is when the tax amount has been paid or has been carried forward but has still not been recognized in the income statement. a contract to own a commodity like wheat. Ans. We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption. Intangible real account – Those assets which have some monetary values but can’t be touched are referred to as intangible real accounts. Accrued Income is an income which has been earned, but has not been recorded in the books of accounts presently. It is a type of accounting information system that records all the financial information and activities of the department. Sold 103 CCTV cameras for Rs. Partitioning refers to the division/subdivision/grouping/regrouping of financial transactions in a given financial year. We'll review your answers and create a Test Prep Plan for you based GAAP is the abbreviation for Generally Accepted Accounting Principles (GAAP) issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956. This could be a tricky accounting interview question so you can answer like – “I was good at numbers and accounting since my school days, but it was during my 10+2; I decided to adopt this field as a profession and did Bachelor’s and then Master’s in Accounting.”. Junior Accountant Interview Questions. Ans. Deferred tax liability signifies that a company may pay more tax in the future due to current transactions. on your results. © copyright 2003-2020 Study.com. It is also called the capital of the business and is calculated by subtracting equity of creditors from the total equity. 4 4. 2. Tell how you have optimized the process and how you came to such a decision through historical data review. If there is an increase in the number of units produced, the total cost of output is changed. Capital is a Personal Account as it belongs to an individual or a firm (owner). Contingent Liabilities are potential obligations that may or may not become an actual liability. This statement shows each government funds expenditure and revenue. The income statement is the company’s core financial statement highlighting the profits and losses of the company. Ans. �?��lK�_8���a\�hjy�t�rx�.�6)���M:������_ׯ΃�D�tվ9y�V�|pw�R�*�y�I�(�Mղ���*�v�f���R�pQ' et=���0��q˻������K[�}U���7Ȍ/Z�� �V!�f�R���O��@[�_��-TϘb IZ(�cұ������~�;���ig�gm���W�$�*=p���������~���*Qˠ��� Ans. AIS is a computer-based method used for tracking accounting activity and involves – collecting, storing, processing, organizing, and summarizing accounting data and transactions. E.g. 547 0 obj <>stream The Financial Accounting Standards Board and the Governmental Accounting Standards Board are parallel bodies under the oversight of the Financial Accounting Foundation. Accounts receivable is yet-to-be received cash from products or services that are already sold/delivered to customers, whereas, deferred revenue is the cash received from customers for services or goods not yet delivered. Top 20 Accounting Interview Questions and Answers. As of March 2019, the petty cash expense made was Rs 10,000. 1 13. It is a common terminology in certain industries like retail and restaurant businesses. Ans. GST is the acronym for Goods and Service Tax and it is an indirect tax other than the income tax. Ans. APT Sample Test Questions Page 8 of 8 Answers to Sample Test Questions Bookkeeping and Accounting Problems 1. 0 appear. If a person is giving any amount either in cash or by cheque to an organization, it becomes an inflow and thus that person must be credited in the books of accounts. Yes, since we know that accounting is all about assets, liabilities, and capital. GAAP is the set of accounting principles used by _____. A degree in accounting is essential. Accounting interview questions and answers. Three main financial statements are Income Statement, Balance Sheet, and Cash Flow Statement. As per fair value accounting, a company has to show the value of all of its assets in terms of price on the balance sheet on which that asset can be sold. 4 6. Ans. Please enable it in order to use this form. Some are essential to make our site work; others help us improve the user experience. Ans. a. Ans. The opposite is true for a liability account. Ans. %%EOF lock in the price of future raw material purchases. <> Examples – Preliminary expenses, promotional expenses of a business, discount allowed on the issue of shares, the loss incurred on issue of debentures, etc. Oh! Ans. Please wait for a few seconds and try again. 15,000. Personal – Accounts related to a person, entity or any legal body, etc. This is another relatively simple question. Section 209(4A) in The Companies Act, 1956 states that: Every company must preserve the books of accounts, together with the vouchers relevant to any entry in such books of account, in good order, relating to a period of not less than 8 years immediately preceding the current year. As the month of June has 30 days the DPO will be: Hence, the DPO in the above situation is 3 days. Balancing means equating or balancing both debit and credit sides of a T-account. Consigner – S/he is the shipper of the goods. Amortization is an accounting concept that is used to gradually write off the cost. Since it’s an entry-level position, they typically won’t have more than five years of experience. This defines the aspects of every transaction. Choose your answers to the questions and click 'Next' to see the next set of questions. Therefore, when an organization received the money or cheque, it needs to credit the person who is paying and debit the organization. In case the company is found guilty, it will have a liability, and if it is not found guilty, the company will not have an actual liability. In case if you wish to join our forum, please send an email seeking an invitation to "[email protected]". There are three branches of accounting –. Project implementation is a phase when the plans and visions come into reality. What is the Journal Entry for Outstanding Expenses? This fund is set up with intent of the government serving as the middle man to make payments to other entities, often used in utilities. ��0��)tԐJ�!��� ���B�P:�����8�����B�ȺAhiy(

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