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Accounting and Finance Questions

What is Accounting and Finance?

Accounting is the language of business. Accounting and finance questions in interviews and entrance exams can be easy sometimes and challenging, the interviewers test your knowledge levels. Frequently asked Accounting and Finance questions would cover topics like: cash flow statements, working capitals, balance sheet, goodwill, financial statements, working capital, tax liabilities, tax, assets, accounts payable, accounts receivable, rate of interests, payroll reports, salary TDS, Ledgers and journals, Invoice, Trial balance, bills payable, bills receivable, Invoice statements, Budgetary control and more.

 

Fresher and experienced professionals should have good knowledge on the fundamentals of accounting and finance, General accounting, capital markets, capital structure and all the advanced accounting concepts. Read accounting and finance books, read newspapers and answer number of sample questions.

 

We have a large collection of sample questions on "Accounting and Finance" frequently asked in many interviews and entrance exams for your practice.

Popular Latest Rated
Q:

What is the difference between debenture and preference share ?

Answer

The difference between Debentures and Preferential Shares is as follows:

1) Person holding debentures has owed money to a company, while Preferential Shareholder could be considered as a partial owner of the company.

2) A Preference shareholder earns dividends if the company is making profits, however a debenture holder needs to be paid irrespective of making profits or losses.

3) A debenture holder would be paid the capital invested at the end of a stipulated term. A preference shareholder is not promised return of capital invested; instead he earns dividends till the time the company exists and is profitable.

4) A debenture holder earns interest on the capital invested till the capital is not returned, while a preference shareholder is paid dividends till the time the company exists.

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Subject: Accounts Payable - Accounting and Finance

13 15405
Q:

The total sum of the goods and services produced in a country in a year, minus depreciation is called as ________.

A) Net Domestic Product B) Gross National Income
C) Gross Domestic Product D) Net National Product
 
Answer & Explanation Answer: A) Net Domestic Product

Explanation:

Gross Domestic Product : 

It is the total value of all final goods and services produced within the boundary of country during the given period of time. 

Gross National Product :

It is the total value of the total output or production of final goods and services produced by the nationals of a country during a given period of time. 

Gross National Income : 

It is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP) plus factor incomes earned by foreign residents, minus income earned in the domestic economy by non-residents.

Net National Product :

The total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been allowed for.

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Filed Under: Bank Interview - Accounting and Finance
Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

19 15177
Q:

The main components of market risk are 

a) Liquidity risk     b) Interest rate risk       c) Currency risk

A) Only a B) both a and b
C) only c D) all a, b and c
 
Answer & Explanation Answer: D) all a, b and c

Explanation:
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Filed Under: Bank Interview - Accounting and Finance
Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

4 15161
Q:

What is Demat Account ?

Answer

The way in which a bank keeps money in a deposit account in the same way the Depository company converts share certificates into electronic form and keep them in a Demat account.


 

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Subject: Bank Interview - Accounting and Finance

21 14574
Q:

Which are the main MIS Reports of an accounts department & what the format of preparing the MIS ?

Answer

MIS report is known as Management Information System... regarding the Manpower status of a particular month, place and overall..


It helps the Management in decision making.. like what are the reasons of resignation.. in which area attrition is high.. and so many things to help in decision making.. with the help of MIS you may prepare a lot of reports.. Like annual attrition.. region wise attrition.. region wise manpower.. graphical representation of regions manpower status.. and so on..


You may prepare the same at your end.As it will help you to prepare other such formats too.


I am describing you the contents with sheet wise..


First Sheet - Details of employee


a. E.Code


b. Name of employee


c. Date of birth          


d. Designation


e. CTC


f. Address for communication


g.Permanent address


h. Contact number


i. Blood group


j. Maximum qualification


k. Extra qualification


l.Total Experience


Second Sheet- Salary structure


In this sheet write down the complete salary structure.. and make a column what is salary after any revision


Third Sheet - New Joinees


In this sheet write down the name of New joinees of that month with detail like CTC,  Designation, DOB etc. 


Forth Sheet - Resigned employees


In this sheet write the name of employees who resigned during that particular month with details like name, designation, date of joining, Date of resignation, last working day.


Fifth sheet - Attrition rate


Based on this MIS report, you may find out the attrition report, Qualification analysis reports, team management reports and so on can prepare a number of reports..

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Subject: Accounts Payable - Accounting and Finance

9 12829
Q:

What is the full form of the trem WIRE in wire payment ? Explain the process for making and receiving the payment through WIRE?

Answer

There is no specific abbreviation for the term WIRE because when the payment is being made using this option, you will not see the physical movement of funds. It is all electronic. It is just like a current passes through Wire. 


Therefore Electronic movement of funds is campared with WIRE.

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Subject: Accounts Payable - Accounting and Finance

22 12282
Q:

What is the Debit Balance recovery? How we can recover if we wont have any future transactions from supplier?

Answer

The Debit balance recovery is usually made by raising a credit memo for the regular vendors. However if there are no future transactions from the supplier, we ask the vendor to send the check / make an EFT for the amount due from him.


When payment is made to the wrong vendor or payment made in excess, in that case overpayment has gone to the vendor, So for us it is vendor debit balance.


For debit balance recovery, we can either follow-up with the vendor to send us the excess amount / refund back, or we can adjust that extra amount in future invoices submitted by that vendor


In Case no future transactions, we have to follow-up with the vendor, falling whicch we have to write off this amount.

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Subject: Accounts Payable - Accounting and Finance

12 12207
Q:

What is STPI ? why STPI knowledge required in Accounts Payable?

Answer

Software Technology Parks of India (STPI).Some of the software service providers will get exemption from STPI for their software exports. In accounts payable may be we need to define the vendor STPI location wise.


In India we have different STPI location. If one vendor supplying services or materials to all OR some of the STPI locations we need to maintain the same vendor STPI wise.  

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Subject: Accounts Payable - Accounting and Finance

15 11336