Behavioral Inventory Accounting Interview Questions & Answers:

1. Described Executive Accounting?

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.

2. Tell me how is an accounting department structured?

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.

3. List the disadvantages of manual accounting?

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.

4. Which qualification do you need to become an accounting professional?

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.

5. What is push down accounting?

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

6. Which are the limitations of accounting ratios?

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.

7. Which are the elements of the accounting equation?

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

8. What is the basic accounting equation?

Assets = Liabilities + Owners Equity

9. Described the nine accounting cycles?

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.

10. How many accounting standards are currently published?

There are total of 9 accounting standards.