Executive Account

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“Executive Accounts Frequently Asked Questions by expert members with experience in Executive Accounts. These questions and answers will help you strengthen your technical skills, prepare for the new job test and quickly revise the concepts”



83 Executive Account Questions And Answers

1⟩ What made you choose to become an accountant?

I've always loved numbers. Loved math in school, and I just want a job that allows me to stick to the figures all day.

The interviewer wants to see that you have some sort of passion driving you.

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2⟩ What are important things to be remembered while preparing a bank reconciliation statement?

While preparing a bank reconciliation statement following important points need to be remembered:

► Bank Reconciliation Statement is prepared either by starting with the Bank pass book balance or Cash book balance.

► If the balance of the Cash book is taken as a starting point then Cash book balance is to be adjusted in accordance with the entries passed in the Bank pass book and vice versa. For example: If the balance is taken as per the Cash book then the following items will be added:

► Cheques issued but not presented for payment;

► Amount credited in Passbook but not in Cash book;

► Deposits made in the bank directly;

► Wrong credits given by bank;

► Interest credited in the Passbook.

The following items will be subtracted:

► Cheques deposited but not cleared;

► Interest/Bank Charges debited by bank

► Direct payments made by bank not entered in Cash book

► Cheques dishonoured not recorded in cash book

► Wrong debits given by bank

► If it is prepared with the Bank balance as per the bank passbook, then the above procedure will be reversed i.e the items will be added to the pass book which were deducted from the cash book balance and those items will be deducted from the bank pass book balance which were added to the cash book balance.

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3⟩ What is capitalization? What is its importance?

Capitalization is a term which has different meanings in both financial and accounting context. Capitalization in accounting means the cost to buy an asset which is included in the price of the asset whereas in financial terms it is the cost which is required to buy an asset which includes price of a particular asset and it also include the retained earnings of a company with stock debt and long term debt. There are two kinds of capitalization which are called as Over-capitalization and another is called as Under-capitalization. Capitalization is very import aspect in determining the value of the company in the market which is based on the economic structure of the company. This aspect depends on the previous records and economics of the company. This also shows a particular behaviour of the companies' structure and allows them to create a plan to do the marketing.

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4⟩ Can you please Compare Financial Accounting and Cost Accounting?

1) Financial Accounting protects the interests of the outsiders dealing with the organization e.g shareholders, creditors etc. Whereas reports of Cost Accounting is used for the internal purpose by the management to enable the same in discharging various functions in a proper manner.

2) Maintenance of Financial Accounting records and preparation of financial statements is a legal requirement whereas Cost Accounting is not a legal requirement.

3) Financial Accounting is concerned about the calculation of profits and state of affairs of the organization as whole whereas Cost accounting deals in cost ascertainment and calculation of profitability of the individual products, departments etc.

4) Financial Accounting considers only transactions of historical financial nature whereas Cost Accounting considers not only historical data but also future events.

5) Financial Accounting reports are prepared in the standard formats in accordance with GAAP whereas Cost accounting information is reported in whatever form management wants

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5⟩ Tell me what is Mercantile or Accrual System of Accounting?

In this system, expenses and incomes are considered during that period to which they pertain. This system of accounting is considered to be ideal but it may result into unrealized profits which might reflect in the books of the accounts on which the organization have to pay taxes too. All the company forms of organization are legally required to follow Mercantile or Accrual System of Accounting.

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6⟩ What are the various systems of Accounting?

There are two systems of Accounting:

1) Cash System of Accounting: This system records only cash receipts and payments. This system assumes that there are no credit transactions. In this system of accounting, expenses are considered only when they are paid and incomes are considered when they are actually received. This system is used by the organizations which are established for non profit purpose. But this system is considered to be defective in nature as it does not show the actual profits earned and the current state of affairs of the organization.

2) Mercantile or Accrual System of Accounting: In this system, expenses and incomes are considered during that period to which they pertain. This system of accounting is considered to be ideal but it may result into unrealized profits which might reflect in the books of the accounts on which the organization have to pay taxes too. All the company forms of organization are legally required to follow Mercantile or Accrual System of Accounting.

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7⟩ Explain where do you see yourself in five years?

Hopefully still in accounting. This is my dream career path, so just being here would be great.

The interviewer wants to know that you don't have plans to bail on the job a year or two from now. It's alright to want kids, but now's not the time to mention that.

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8⟩ What is Financial Accounting. What are its characteristic features?

Financial Accounting is the process in which business transactions are recorded systematically in the various books of accounts maintained by the organization in order to prepare financial statements. These financial statements are basically of two types: First is Profitability Statement or Profit and Loss Account and second is Balance Sheet.

Following are the characteristics features of Financial Accounting:

1) Monetary Transactions: In financial accounting only transactions in monetary terms are considered. Transactions not expressed in monetary terms do not find any place in financial accounting, howsoever important they may be from business point of view.

2) Historical Nature: Financial accounting considers only those transactions which are of historical nature i.e the transaction which have already taken place. No futuristic transactions find any place in financial accounting, howsoever important they may be from business point of view.

3) Legal Requirement: Financial accounting is a legal requirement. It is necessary to maintain the financial accounting and prepare financial statements there from. It is also obligatory to get these financial statements audited.

4) External Use: Financial accounting is for those people who are not part of decision making process regarding the organization like investors, customers, suppliers, financial institutions etc. Thus, it is for external use.

5) Disclosure of Financial Status: It discloses the financial status and financial performance of the business as a whole.

6) Interim Reports: Financial statements which are based on financial accounting are interim reports and cannot be the final ones.

7) Financial Accounting Process: The process of financial accounting gets affected due to the different accounting policies followed by the accountants. These accounting policies differ mainly in two areas: Valuation of inventory and Calculation of depreciation.

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9⟩ What is cost accountancy? What are the objects of Cost Accountancy?

Cost accountancy is the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and the ascertainment of profitability as well as the presentation of information for the purpose of managerial decision making.

Following are the objects of Cost Accountancy:

► Ascertainment of Cost and Profitability

► Determining Selling Price

► Facilitating Cost Control

► Presentation of information for effective managerial decision

► Provide basis for operating policy

► Facilitating preparation of financial or other statements

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10⟩ Your position is very important to the company's bottom line, so I feel compelled to ask how do you eliminate mistakes?

Mistakes are a part of the human nature, which is why it's so important to be diligent. I double check all of my work - doing it once on the computer, and a second time by hand. If they match, I'm sure that I have the right answer.

Accounting is all about money, and the last thing a business wants is someone making a careless (or even just not-careful-enough) mistake with that money. The interviewer wants to know that you have a system in place to make mistakes very rare.

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11⟩ Tell me What is Cash System of Accounting?

This system records only cash receipts and payments. This system assumes that there are no credit transactions. In this system of accounting, expenses are considered only when they are paid and incomes are considered when they are actually received. This system is used by the organizations which are established for non profit purpose. But this system is considered to be defective in nature as it does not show the actual profits earned and the current state of affairs of the organization.

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12⟩ Name the accounting applications that you're comfortable with?

I'm comfortable with Quickbooks and Netsuite. However, I'm computer savvy and believe I could learn another system relatively quickly.

Even if you don't know the program they work with, the interviewer is okay so long as you mention that you're willing to learn their system.

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13⟩ Can you tell me what makes a successful account manager?

Speak confidently when answering questions where success is the subject. You do not have to gush and describe every possible aspect you can think of. Talk about a few key concepts, like communication and negotiation skills, market research and customer prospecting, etc. You will make an even better impression if you give an example from your own professional life to demonstrate your idea.

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15⟩ How would you define team work and communication skills in the context of account management?

As an account manager, you work on two fronts: the clients and your company. Both require excellent communication skills. You need to earn the trust of both clients and managers, to convince both sides to close the best possible deal. Teamwork is probably more related to coordinating actions with the company, the development, sales, and marketing departments.

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16⟩ Do you know what is Tally Accounting?

Tally is a financial accounting software package designed by Tally Solutions mainly for small businesses and shops. They claim on their website that Tally is used by over 2 million users, in over 90 countries. Tally 9.0 is the latest version to date.

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17⟩ Tell me what is the difference between personal account real account and nominal account?

The total business transactions are divided in to three They are Transactions related to persons, Transactions related to Things, Transactions related to incomes & expenditures. In accountancy we have three types of accounts they are - personal, real, nominal Personal accounts refers to all the transactions related to natural persons, artificial persons and representative persons ex:- rama, ravi, Indian bank, outstanding rent. ,. First category of transactions belongs to personal accounts RULE: debit the receiver and credit the giver Real accounts include things in the business i.e. assets. Second category of transactions related to Real accounts ex: buildings, machinery, cash etc. RULE: Debit what comes in and credit what goes out Nominal accounts includes all the transactions related to expenditures, incomes, losses, and profits. Ex: - rent paid, rent received, bad debts, profit on sale of an asset.

RULE: Debit all expenses and losses and credit all incomes and profits

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18⟩ Tell me what is Departmental Accounting? Give an example?

Departmental accounting means account prepared separately for the department and here ledgers will be opened trial balance will be prepared, also p&l account will be prepared, and profit or loss is included in the main p&l account and shown in the balance sheet.

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19⟩ What do you do to increase revenues? What are your tactics, techniques, and sales methods?

An account manager uses the information at his disposal to maintain and increase client interest. Staying current and doing marketing research are key factors to understanding what the customer is getting tired of and what he might become interested in. This information has to be effectively coordinated with the company departments in order to result in a product that will prevent the customer from leaving.

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20⟩ What would you say are the most important qualities of an account manager?

This question tests your confidence, self awareness, and independence. Do not be afraid to speak your mind confidently. The ability to work independently and make decisions is crucial if you are an account manager. This in turn requires being organized and self motivated, with the ability to work with many customers at once. This means outstanding customer service skills.

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