Q: Why did you select accounting as your profession?
A: Well, I was quite good in accounting throughout but in my masters, when I got distinction I decided to adopt this field as a profession.
Q: What is the abbreviation for the accounting terms debit and credit?
A: Debit abbreviation is “dr” and credit abbreviation is “cr”.
Q:How many types of business transactions are there in accounting?
A: There are two types of transactions in accounting i.e. revenue and capital.
Q: What is working capital?
A: Working capital is defined as current assets minus current liabilities; it tells the financial statement user how much cash is tied up in the business through items such as receivables and inventories and also how much cash is going to be needed to pay off short term obligations in the next 12 month
Q: What is balance sheet?
A:It is a statement that states all the liabilities and assets of the company at certain point.
Q: In balance sheet, where do you show TDS (Tax Deduction at Source)?
A: It is shown on the assets section, right after the head current asset.
Q: How is the linked to the balance sheet?
A: Net income flows into retained earnings.
Q: what do you know about Excise or Service Tax?
A: This is a type of hidden tax contained in the service supplied by the service provider which is taken care of by the service receiver.
Q: what is executive accounting?
A: Executive accounting is a type of accounting that is custom designed for the enterprise that provides service to users.
Q: In accounting, VAT abbreviates what?
A: VAT means Value Added Tax.
Q: Why are increases in accounts receivable a cash reduction on the cash flow statement?
A: Since our cash flow statement starts with net income, an increase in accounts receivable is an adjustment to net income to reflect the fact that the company never actually received those funds.