242 Accounting Quizzes Online, Trivia, Questions & Answers


While this answer would be adequate, it isn’t the best answer. A standard journal entry includes, date of the business transaction, the name of the accounts affected, amounts to be debited or credited, and a brief description of the event. This single entry will affect both accounts, the asset accounts, and the liabilities accounts. A cash discount should be recorded in a journal entry as a reduction of expense in a cash account.

242 accounting quizzes online, trivia, questions & answers

It can be expenses and income types that are recorded into separate accounts. A compound journal entry is just like other accounting entries where there is more than one debit, more than one credit, or more than one of both debits and credits. It is essentially a combination of several simple journal entries. Mary Beth Heuvelmans, CPA, has over 20 years experience in accounting and tax preparation, from tax return preparation to complex accounting for large businesses. Accounting Answers provides Professional CPA, Tax Preparation, and Accounting Services to businesses and individuals in the Madison, WI area. We also can handle small business bookkeeping services, payroll processing and support for bookkeeping software. Accounting is necessary to predict and measure the growth of a business.

Main Objectives Of Both Accounting Practices

Your matched tutor provides personalized help according to your question details. Payment is made only after you have completed your 1-on-1 session and are satisfied with your session. Definition of Additional Medicare Tax The Additional Medicare Tax is one of the U.S. government’s payroll withholding taxes that is paid solely by employees and the self-employed.However, they also have another responsibility–reduce costs whenever and wherever they can. In fact, some corporations hiring “cost accountants” whose entire professional existence is dedicated to analyzing, tracking and reducing costs–as well as maximizing savings. Employers want creative accountants–accountants that will go above and beyond the “traditional” role of record keeping and financial reporting, and bring added value to the company.

Accounting Quizzes & Trivia

In other words, it is the basic cost levied on the company to run a business process that is outstanding. A short term amounts due from buyers to a seller, who have purchased goods or services from the seller on credit is referred to as account receivable. An over accrual is a condition where the estimate for an accrual journal entry is too high. This estimate may apply to the accrual of expense or revenue. A deferred asset refers to a deferred debit or a deferred charge. These costs involve all of the fees or charges that an organization incurs to register and issue bonds. In this account debits and credits, transactions are entered in one place and kept balanced.

  • A good accountant knows how to play the game without compromising their integrity or the reputation of the company they work for.
  • Through your answer you need to demonstrated that you are familiar the different accounting standards, especially those that are relevant to your expertise and position.
  • Many job-seeker submit their resume to every company that has an open accounting position.
  • You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
  • At Answers Accounting CPA LLC, we believe in quality accounting and tax serviceleads to smart decision making and financial success.
  • It ensures that the company’s records are correct and that the bank’s records are also correct.

These clients are normal people and not any organizational customers. MIS reports are created to identify the efficiency of any department of a company. Purchase return is a term used to record every defective or unsatisfactory product returned to its supplier.

List Of Commonly Asked Accounting Interview Questions:

Testing your ability to use popular accounting programs helps the interviewer determine if you can really do you’re job, or if you just a lot of talk. Principle dictates the process and timing by which revenue is recorded and recognized as an item in the financial statements based on certain criteria (e.g., transfer of ownership). The matching principle dictates that the timing of expenses be matched to the period in which they are incurred, as opposed to when they are actually paid. Negative working capital is common in some industries such as grocery retail and the restaurant business. For a grocery store, customers pay upfront, inventory moves relatively quickly but suppliers often give 30 days credit. This means that the company receives cash from customers before it needs the cash to pay suppliers. Negative working capital is a sign of efficiency in businesses with low inventory and accounts receivable.

Do accountants use calculus?

To answer your question simply, accounting does not involve calculus in most cases and typically is more basic mathematical functions.As the name implies, the dual aspect concept states that every transaction has two sides. For example, when you buy something, you give the cash and get the thing. Similarly, when you sell something, you lose the thing and get the money.

Top Accounting Questions

As a certified QuickBooks ProAdvisor, we use this software and other innovative technology to provide information as quickly and efficiently as possible. By integrating cutting edge technology you have access to financial documents, reports, and analyses right at your fingertips, allowing you to make informed decisions quickly. Wherever you are located, these innovative QuickBooks tools allow our Colorado Springs team to help you achieve sustainable, confident growth. Definition of Gross Wages Gross wages are the amounts earned by employees before the payroll withholding taxes and other deductions are subtracted. Sometimes gross wages is used to describe the amounts earned by hourly-paid employees.As of May 2017, there were just over 1.3 million accountants employed in the United States. Every business in the nation has an accountant on staff, contracts with an accountant, or relies on an accounting firm to help them manage their financial affairs. Notwithstanding, there is fierce competition for the best accounting jobs and positions. Landing a good job requires more than a knowledge of accounting, it requires good interview skills. Double-entry accounting is an accounting system that requires recording business transactions or events in at least two accounts. It is the same concept of accounting, where every debit account should be matched with a credit account.Second, you want to demonstrate that although you’re a creative accountant, you’d never do anything illegal, dishonest or that would compromise the reputation of the company. Interviewers want to know your motive for pursuing a career in accounting, and more importantly why you’re interested in the position. Being an accountant can be routine, monotonous, and sometimes even boring–you need to communicate that you chose this career path because you love accounting. Deferred revenue represents cash received from customers for services or goods not yet provided.Due to double entry, the “cash account” will increase as such the liability account increases. At Answers Accounting CPA LLC, we believe in quality accounting and tax serviceleads to smart decision making and financial success. For a business to prosper, what they need most is funding which can come through investments, cash or selling their shares.For instance, a corporation with 100,000 shares of stock before a 2-for-1 stock split will… Read More.Employers want creative accountants, accountants who use creative accounting to save money and find new opportunities for the company. When answering this question, try to find an example based on your professional experience, even if it’s limited to an internship.

242 accounting quizzes online, trivia, questions & answers

You may be the best accountant in the world, but if you can’t communicate that you’re best, in a meaningful way, you’ll be passed over for less qualified candidates. Our goal is to introduce you to the questions that most interviewers use and help you learn interview strategies that will help you rise above the competition.The cash flow statement shows the cash flows from operating, investing, and financing activities. The knowledge requirements for answering accountant job interview questions will vary by position. On the balance sheet, the asset account of inventory is reduced by the amount of the write-down, and so is shareholders’ equity. The income statement is hit with an expense in either COGS or a separate line item for the amount of the write-down, reducing net income. On the cash flow statement, the write-down is added back to CFO as it’s a non-cash expense but must not be double-counted in the changes of non-cash working capital. In contrast, financial accounting reports are highly regulated, especially the income statement, balance sheet, and cash flow statement. Above we reviewed some of the most common interview questions job-seekers will face when applying for accounting positions.

The Wonderful Wizard Of Oz

Download our free interviewer’s guide for a comprehensive list of 41 key Accounting interview questions and answers, to help you find your ideal candidate. In accounting, the trial balance is an accounting report that lists the balances in each of an organization’s general ledger accounts. This is done at the end of the posting journal entry to ensure that there are no posting errors. It ensures that the company’s records are correct and that the bank’s records are also correct. These records can be check register, balance sheet, a general ledger account, etc. The general ledger account is an account used to record all the information.

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They send out hundreds of resumes a week hoping to land an interview–and employers know this. What employers want to know is that you’re genuinely interested in their company, as well as the best candidate for the position. Once you’ve described to the interviewer the most challenging accounting task you’ve had to solve, it’s pretty certain that the interviewer will then ask how you were able to solve it. When answering this question, make sure you choose a task that you were able to solve. Presenting a task you were unable to solve–albeit challenging–would not instill in the interviewer a sense that you are a good problem solver.Do this and the interviewer is likely going to be convinced that you have the perfect skill set and personality for the job. Having the ability to work well with computers, even program, is a big asset for accountants and the firms they work with. I studied both accounting standards in college and relied heavily on on IAS during my last job to make sure all financial reporting was correct. I have access to both IAS and IFRS online and stay abreast of the most recent updates and changes in accounting standards. The correct answer to this question is “yes”, followed up with a brief explanation of your knowledge on accounting standards.This may vary considerably by company or even bydepartmentwithin a company. This is a pretty common question that any job-seeker should expect during an initial interview. It’s also a very important question that deserves a well thoughtout answer. The answer you give could make or break your chances of landing the job. Many job-seeker submit their resume to every company that has an open accounting position.