Accounting Interview Questions and Answers
| 1) |
Define fair value accounting? As per fair value accounting, a company has to show the value of all of its assets in terms of price on balance sheet on which that asset can be sold. |
| 2) |
Define trade bills? We know that all types of transactions need to be documented. The trade bills are the documents, generated against each transaction. |
| 3) |
Define overhead in terms of accounting? It is the indirect expenditure of a company such as salaries, rent dues etc. |
| 4) |
Define Offset accounting? Offset accounting is one that decreases the net amount of another account to create a net balance. |
| 5) |
Differentiate between provision and reserve? Provisions are the liabilities or the anticipated items such as depreciation. You can say provisions are expenses. Reserves are the profits of any company and a part of that profit is placed back to the business to keep it sustainable in tough times of a company. |