INTERVIEW QUESTIONS AND ANSWERS BOOK
Take the fear out of your interview and never be stuck for the right answer to even the toughest questions with The Interview Question and Answer Book. The job. Buy The Interview Question and Answer Book: How to be Ready to Answer the Toughest Interview Questions: How to be ready to answer the toughest. Book 1 of 2 in How To Answer Interview Questions (2 Book Series) This is the book that will show you how to use your answers to get the job. What This Book.
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This item:The Interview Question & Answer Book: How to be ready to answer the toughest interview questions by James Innes (author) Paperback $ Take the fear out of your interview and never be stuck for the right answer to even the toughest questions with 'The Interview Question & Answer Book'. Written. In Chapters 3 through 10, we'll get into the meat of the book—the questions for . interviews will hinge on your ability to answer this seemingly simple question.
When costs change during the accounting period, a cost flow will have to be assumed. Question Answer : Journals are referred to as books of original entry. Accounting entries are recorded in a journal in order by date. A company might use special journals sales, purchases, cash disbursements, cash receipts , or its accounting software will generate entries for routine transactions, but there will always be a general journal in which to record nonroutine transactions, such as depreciation, bad debts, sale of an asset, etc.
In the general journal you must enter the account to be debited and the account to be credited and the amounts. Once a transaction is recorded in the general journal, the amounts are then posted to the appropriate accounts. To recap The general journal is a place to first record an entry before it gets posted to the appropriate accounts.
Answer : Equity is used in accounting in several ways. Often the word equity is used when referring to an ownership interest in a business. Examples include stockholders' equity or owner's equity. Occasionally, equity is used to mean the combination of liabilities and owner's equity. Equity is also used to indicate an owner's interest in a personal asset.
Outside of accounting, the word equity is also used to indicate fairness or justice. Answer : Reconciling an account often means proving or documenting that an account balance is correct. For example, we reconcile the balance in the general ledger account Cash in Checking to the balance shown on the bank statement. The objective is to report the correct amount in the general ledger account Cash in Checking.
You will often need to adjust the general ledger account balance for items appearing on the bank statement that were not entered in the general ledger account. I recall being asked to reconcile the general ledger account Freight Payable.
What I needed to do was provide documentation that the balance in Freight Payable was proper. I proceeded to look at the shipments of recent sales and then determined how much we would be obligated to pay for the freight on those sales. We then adjusted the balance in Freight Payable to my documented amount.
This reconciliation was done to have the correct account balance and to provide the outside auditors with documentation which could easily be reviewed. I also reconciled the balance in Utilities Payable by computing the daily cost of each utility that the company used. The cost per day was then multiplied by the number of days since the last meter reading date shown on the utility bills already entered in our accounting system.
We then adjusted the Utilities Payable account balance to be equal to the documented amount. Answer : A control account is a summary account in the general ledger. The details that support the balance in the summary account are contained in a subsidiary ledger—a ledger outside of the general ledger.
The purpose of the control account is to keep the general ledger free of details, yet have the correct balance for the financial statements. For example, the Accounts Receivable account in the general ledger could be a control account. If it were a control account, the company would merely update the account with a few amounts, such as total collections for the day, total sales on account for the day, total returns and allowances for the day, etc.
The details on each customer and each transaction would not be recorded in the Accounts Receivable control account in the general ledger. Rather, these details of the accounts receivable activity will be in the Accounts Receivable Subsidiary Ledger. This works well because the employees working with the general ledger probably do not need to see the details for every sale or every collection transaction.
However, the sales manager and the credit manager will need to know detailed information on individual customers, including whether a customer recently reduced their account balance. The company can provide these individuals with access to the Accounts Receivable Subsidiary Ledger and can keep the general ledger free of a tremendous amount of detail. What Is A Journal Entry? Answer : In manual accounting or bookkeeping systems, business transactions are first recorded in a journal Today, computerized accounting systems will automatically record most of the business transactions into the general ledger accounts immediately after the software prepares the sales invoices, issues checks to creditors, processes receipts from customers, etc.
The result is we will not see journal entries for most of the business transactions. However, we will need to process some journal entries in order to record transfers between bank accounts and to record adjusting entries. For example, it is likely that at the end of each month there will be a journal entry to record depreciation. This will include a debit to Depreciation Expense and a credit to Accumulated Depreciation. In addition, there will likely be a need for journal entry to accrue interest on a bank loan.
This will include a debit to Interest Expense and a credit to Interest Payable. What Is Retained Earnings? Answer : Generally, retained earnings is a corporation's cumulative earnings since the corporation was formed minus the dividends it has declared since it began.
In other words, retained earnings represents the corporation's cumulative earnings that have not been distributed to its stockholders. A negative amount of retained earnings is reported as deficit or accumulated deficit. Answer : The journal entry for depreciation contains a debit to the income statement account Depreciation Expense and a credit to the balance sheet account Accumulated Depreciation. The purpose of the journal entry for depreciation is to achieve the matching principle.
In each accounting period, part of the cost of certain assets equipment, building, vehicle gets moved from the balance sheet to depreciation expense on the income statement so it can be matched with the revenues obtained by using these assets.
The account Accumulated Depreciation is reported under the asset heading of Property, Plant and Equipment. It is also known as a contra asset account because it is an asset account with a credit balance. Because Accumulated Depreciation is a balance sheet or real or permanent account, its balance will carry over to the next accounting period. This means that its credit balance could get as large as the cost of the assets being depreciated.
The income statement account Depreciation Expense is a temporary account. At the end of each year, its balance is transferred out of the account and Depreciation Expense will begin the new year with a zero balance. It is important to realize that when the depreciation expense entry is recorded, a company's net income is reduced by the expense, but its cash is not reduced.
Cash would have been reduced when the asset was acquired. You should also realize that depreciation is an estimate based on the asset's historical cost not its replacement cost , its estimated useful life, and its estimated salvage value.
The focus of depreciation is to allocate and match the cost to expense and it is not to provide an estimate of the current value of the asset.
As a result, the market value of a one year old computer will likely be less than the remaining amount reported on the balance sheet. On the other hand, a rental property in a growing area might have a market value that is greater than the remaining amount reported on the balance sheet. What Is A Credit Memo? Answer : One type of credit memo is issued by a seller in order to reduce the amount that a customer owes from a previously issued sales invoice.
In other words, the credit memo reduced SellerCorp's net sales and its accounts receivable. Another type of credit memo, also referred to as a credit memorandum, is issued by a bank when it increases a depositor's checking account for a certain transaction.
504 Absolutely Essential Words
What Are Prepaid Expenses? Answer : Prepaid expenses are future expenses that have been paid in advance. You can think of prepaid expenses as costs that have been paid but have not yet been used up or have not yet expired. The amount of prepaid expenses that have not yet expired are reported on a company's balance sheet as an asset. As the amount expires, the asset is reduced and an expense is recorded for the amount of the reduction.
Hence, the balance sheet reports the unexpired costs and the income statement reports the expired costs. The amount reported on the income statement should be the amount that pertains to the time interval shown in the statement's heading.
The Interview Question & Answer Book
A common prepaid expense is the six-month premium for insurance on a company's vehicles. Since the insurance company requires payment in advance, the amount paid is often recorded in the current asset account Prepaid Insurance.
If the company issues monthly financial statements, its income statement will report Insurance Expense that is one-sixth of the amount paid. The balance in the account Prepaid Insurance will be reduced by the amount that was debited to Insurance Expense.
Answer : A contra asset account is an asset account where the balance will be either a credit balance or a zero balance. A debit balance in a contra asset account will violate the cost principle.
Since a credit balance in an asset account is contrary to the normal or expected debit balance the account is referred to as a contra asset account. The most common contra asset account is Accumulated Depreciation.
Accumulated Depreciation is associated with property, plant and equipment and it is credited when Depreciation Expense is recorded. Recording the credits in the Accumulated Depreciation means that the cost of the property, plant and equipment will continue to be reported. Reporting the accumulated depreciation separately allows the readers of the balance sheet to see how much of the cost has been depreciated and how much has not yet been depreciated. Another contra asset account is Allowance for Doubtful Accounts.
This account appears next to the current asset Accounts Receivable. The account Allowance for Doubtful Account is credited when a company enters estimated amounts as debits to Bad Debts Expense under the allowance method. The use of Allowance for Doubtful Accounts permits a reader to see the documented amounts in Accounts Receivable that the company has a right to collect from its credit customers. The separate credit balance in the account Allowance for Doubtful Accounts tells the reader how much of the debit balance in Accounts Receivable is unlikely to be collected.
A less common example of a contra asset account is Discount on Notes Receivable. The credit balance in this account is amortized or allocated to Interest Income or Interest Revenue over the life of a note receivable. What Is The Three-way Match? Answer : In accounting, the three-way match refers to a procedure used when processing an invoice received from a vendor or supplier.
The purpose of the three-way match is to avoid paying incorrect and perhaps fraudulent invoices. Three-way refers to the three documents involved: Vendor's invoice which was received and will become part of an organization's accounts payable if approved. Purchase order that was prepared by the organization.
Receiving report that was prepared by the organization. Match refers to the comparison of the quantities, price per unit, terms, etc.
After the vendor's invoice has been validated by the three-way match, it can be further processed for payment. The three-way match is an important step in safeguarding an organization's assets. Answer : The provision for bad debts might refer to the balance sheet account also known as the Allowance for Bad Debts, Allowance for Doubtful Accounts, or Allowance for Uncollectible Accounts.
In this case Provision for Bad Debts is a contra asset account an asset account with a credit balance. It is used along with the account Accounts Receivable in order to report the net realizable value of the accounts receivable. In this situation, the Provision for Bad Debts reports the credit losses that pertain to the period shown on the income statement. Answer : Having an asset account such as Accumulated Depreciation allows a company's balance sheet to easily report both the amount of an asset's cost that has been depreciated as of the date of the balance sheet, and the asset's cost.
This is possible because Accumulated Depreciation is credited each time that Depreciation Expense is debited. Since Accumulated Depreciation will have a continually increasing credit balance it is referred to as a contra asset account. What Is A Liability? Answer : A liability is an obligation and it is reported on a company's balance sheet.
A common example of a liability is accounts payable. Accounts payable arise when a company purchases goods or services on credit from a supplier. When the company pays the supplier, the company's accounts payable is reduced. Other common examples of liabilities include loans payable, bonds payable, interest payable, wages payable, and income taxes payable.
Less common liabilities are customer deposits and deferred revenues. Deferred revenues come about when customers prepay a company for work to be done in a future accounting period. When the company performs the work, the liability will be reduced and the company will report the amount it earned as revenues on its income statement. Liabilities are often viewed as claims on a company's assets.
However, liabilities can also be thought of as a source of a company's assets. Answer : Sundry can mean various, miscellaneous, or diverse. Sundry debtors might refer to a company's customers who rarely make purchases on credit and the amounts they purchase are not significant. I suspect that the term sundry was more common when bookkeeping was a manual task.
In other words, prior to the low cost of computers and accounting software, a bookkeeper had to add a page to the company's ledger book for every new customer. If a new page was added for every occasional customer, the ledger book would become unwieldly. It was more practical to have one page entitled sundry on which those occasional customers' small transactions were entered. With the efficiency and low cost of today's accounting systems, I believe the need for classifying customers and accounts as sundry has been greatly reduced.
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Answer : A debit memo on a bank statement refers to a deduction from the bank account's balance. In other words, a debit memo has the same effect as a check written on the bank account. But remember, the interviewer cares less about the details of the conflict and more about the steps you took to resolve it.
Details rarely repeat themselves, but conflicts are inevitable. Keep the narrative as objective as possible no rants about the jerk that ruined the project and, most importantly, describe a tangible result.
That being said, a work environment extends beyond the physical component.
Maybe you like to work alone, maybe you like a lot of noise, maybe you like exploring different lunch options every day.
What are your salary requirements? Could you match that? Are you a big picture thinker or detail-oriented? How would people describe you? Be warned: do not rattle off a list of adjectives.
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Information overload sucks, especially without context. Instead, have one or two traits in mind and wrap them into a narrative. What are your long-term career goals? Tell us about your leadership experience. They already have your resume, so listing your leadership positions is redundant. This is another vague request. As an intern at X company, I was the first to [blank]. How do you deal with difficult or stressful situations? Maybe you overcame an illness or juggled multiple jobs to make ends meet, but you made it through.
Either way, make it clear that if you were able to handle this situation, you can handle anything your job throws at you. What do you like to do outside of work?
All of these questions warrant authentic, transparent answers, but this one is especially important. This is your chance to prove your humanity. Hard work is important, but the ability to relax and transition smoothly into life outside the office is more valuable than you might think. If you like to have a couple beers and watch football or go off the grid and watch birds, lay it all out there. Study up. How many tennis balls can you fit in a Boeing airplane?
A friend of mine was asked this in an interview with an investment bank on Wall Street.Filed Under: About James Innes. Answer : A debit memo on a bank statement refers to a deduction from the bank account's balance. Won't you find it frustrating? Talk about a book you actually read and liked If possible, talk about a book you read that is relevant to the field in which you are applying If the interviewer has read it too, feel free to ask their opinion on it Be truthful in your response If you are asked this question, the interviewer is just trying to learn more about you as a person.
The cost per day was then multiplied by the number of days since the last meter reading date shown on the utility bills already entered in our accounting system.