Accounting Interview Questions and Answers
| 31) |
By saying, perpetual or periodic inventory system; what do we mean? In the first one i.e. the perpetual inventory system, the accounts are adjusted on continual basis. In the periodic inventory system, the accounts are adjusted periodically. |
| 32) |
Define fictitious assets? These are the assets that cannot be shown or touch. Fictitious assets can only be felt such as good will, rights etc. |
| 33) |
How can you define departmental accounting? It is a type of accounting in which separate account is created for departments. It is managed separately as well as shown independently in the balance sheet. |
| 34) |
What is tally accounting? It is the software used for accounting in small business and shops for managing routine accounting transactions. |
| 35) |
Do you think there is any difference between inactive and dormant accounts? Yes, both are different terms in accounting. Inactive accounts means that accounts have been closed and will not be used in future as well. While, dormant accounts are those that are not functional today but may be used in future. |