Basic Accounting Interview Questions and Answers

1) Why choose accounting as a profession?

Accounting is chosen as a profession because:
 Become a part of an extensive network of professionals.
 Accept or experience a challenging role.
 Explore new opportunities.
 Offers all kinds of career options.
2) What are the skills needed to work as an accountant?
Skills needed to work as an accountant are:
 Excellent at math
 Strong analytical skills
 Structured work style
 Aptitude for technology.
3) Mention some accounting software
The best accounting software are:
 FreshBooks
 NetSuite ERP
 Tipalti
 FreeAgent
 Zoho Books
 Sage Business Cloud Accounting
 Sage 50cloud
 Tally
4) Mention the difference between SAP Memory and ABAP Memory
 SAP Memory is a global user-related memory that extends beyond the limit of
transaction.
 ABAP Memory is a memory area within each main session and can be
accessed by programs using the import-export statement.
5) What is Microsoft Accounting Professional?
Microsoft Accounting Professional is an accounting application that offers reliable
and fast processing of accounting transactions. It also helps with financial analysis.
6) What is the abbreviation for the accounting terms debit and credit?
The debit abbreviation is “dr” and credit abbreviation is “cr”.
7) How many types of business transactions are there in accounting?
There are two types of transactions in accounting, i.e., revenue and capital.
8) What is the balance sheet?
It is a statement that states all the liabilities and assets of the company at a certain
point
9) What is TDS?
TDS stands for Tax Deduction at Source. It is introduced to collect text from the
company from where the employee income is generated.
10) Where to show TDS in the balance sheet?
TDS is shown on the assets section, right after the head current asset.
11) What is GST?
GST stands for Goods and Service Tax. It’s an indirect tax other than the income
tax. It charges on the value of the service or product sold to a customer. The
customer/clients pay the GST, and the seller deposits the GST with the government.
Some countries have sales, service tax with works more or less the same as GST.
12) What is the key difference between inactive and dormant accounts?
Yes, both are different terms in accounting. Inactive accounts mean that accounts
have been closed and will not be used in the future as well. Dormant accounts are
those that are not functional today but may be used in the future.
13) What is tally accounting?
It is the software used for accounting in small business and shops for managing
routine accounting transactions.
14) How to define departmental accounting?
Departmental accounting is a type of accounting in which a separate account is
created for departments. It is managed separately as well, as shown independently
in the balance sheet.
15) Define fictitious assets
These are the assets that cannot be shown or touch. Fictitious assets can only be
felt, such as goodwill, rights, etc.
16) What is the meaning of a perpetual or periodic inventory system?
In the perpetual inventory system, the accounts are adjusted on a continual basis. In
this inventory system, the accounts are changed periodically.
17) What is premises in accounting?
Premises refers to fixed assets that are shown in the balance sheet.
18) What is the abbreviation of VAT?
The abbreviation of VAT is Value Added Tax.
19) How many accounting standards are published by ICAI?
There is a total of 33 accounting standards published by ICAI. The purpose of these
standards is to implement the same policies and practices in any country.
20) What is ICAP?
ICAP the abbreviation of the Institute of Chartered Accountants in Pakistan.
21) What is the basic accounting equation?
Accounting is all about assets, liabilities, and capital. Therefore, the accounting
equation is:
Assets = Liabilities + Owners Equity.
22) Define executive accounting
Executive accounting is a type of accounting that is specifically designed for a
business that offers services to users.
23) Define public accounting
Public accounting offers audits and CPAs to review company financial records to
ensure accountability. It is for the general public.
24) What is a CPA?
CPA stands for Certified Public Accountant. To become a CPA, one should have to
do many other qualifications as well. It is a qualification with a 150-hour requirement.
It means that one should complete 150 credit hours at an accredited university.
25) What is a bank reconciliation statement?
A reconciliation statement is prepared when the passbook balance differs from the
cash book balance.
26) What is the primary difference between public and private accounting?
Public accounting is a type of accounting that is done by one company for another
company. Private accounting is done for your own company.
27) What is project implementation?
Project implementation involves six steps in total, such as:
  Identify need
 Generate and screen ideas
 Conduct a feasible study
 Develop the project
 Implement the project
 Handle the project
28) Why accounting standards are mandatory?
Accounting standards are mandatory because:
 They play a crucial role in preparing good quality and accurate financial
reports.
 It ensures reliability and relevance in financial statements.
29) Name different branches of accounting
There are three branches of accounting:
 Financial accounting
 Management accounting
 Cost accounting
30) What is the basic difference between accounting and auditing?
Accounting is all about recording daily business activities. Auditing is the checking
whether all these events have been noted down correctly or not.
31) Define dual aspect term in accounting
As the name implies, the dual aspect concept states that every transaction has two
sides. For example, when you buy something, you give the cash and get the thing.
Similarly, when you sell something, you lose the thing and get the money. So this
getting and losing are two aspects of every transaction.
32) What do we mean by purchase return in accounting?
Purchase return is a term used to record every defective or unsatisfactory product
returned to its supplier.
33) Define the term material facts in accounting
Material facts are the bills or any document that becomes the base of every account
book. It means that all those documents, on which account book is prepared, are
called material facts.
34) What are the MIS reports?
MIS reports are created to identify the efficiency of any department of a company.
35) Define a company’s payable cycle
It is the time required by the company to pay all its account payables.
36) Define retail banking
Retail banking is a type of banking that involves a retail client. These clients are
normal people and not any organizational customers.
37) How much mathematics knowledge is necessary or required in
accounting?
Not much knowledge, but the basic mathematical background is required in
accounting for operations like addition, subtraction, multiplication, and division.
38) Define bills receivable
All types of exchange bills, bonds, and other securities owned by a merchant that is
payable to him are said as bills receivable.
39) Define depreciation and its types
Depreciation can be defined as the value of an asset that is decreasing as it is in
use. It has two types, such as:
 Straight line method
  Diminishing value method
 Annuity method
 Depletion method
 Written down value method.

40) Differentiate between consignor and consignee

Consigner is the owner of the goods, or you can say he is the person who delivers
the goods to the consignee. The consignee is the person who receives the goods.
41) Define balancing in accounting
Balancing means to equate both sides of the account, i.e., the debit and credit sides
of an account must be equal/balanced.
42) How much statistics knowledge is necessary or required in accounting?
You must be very good at statistics if you want to do well in accounting. Otherwise,
with minimum knowledge, you cannot manage your day to day transactions
effectively in accounting.
43) Define Scrap value in accounting
It is the residual value of an asset. The residual value is the value that any asset
holds after its estimated lifetime.
44) What is the marginal cost?
Marginal cost is defined as an increase or decrease in the cost of producing units or
serving customers.
45) Define Partitioning in accounting
It is a kind of group made based on the same responses by a system.
46) What is the key difference between provision and reserve?
Provisions are the liabilities or the anticipated items, such as depreciation. In
contrast, Reserves are the profits of any company, placed back to the business to
keep it sustainable in tough times of a company.
47) Define offset accounting
Offset accounting is one that decreases the net amount of another account to create
a net balance.
48) Define overhead in terms of accounting
It is the indirect expenditure of a company such as salaries, rent dues, etc.
49) Define trade bills
The trade bills are accounting documents generated against each transaction.
50) Define fair value in accounting
Fair value is the measurement of liabilities and assets according to the current value
of the market. It shows the estimated price at which any assets are sold. Liability
shows third party transactions under the current condition of the market.
51) What is compound journal entry?
A compound journal entry is just like other accounting entries where there is more
than one debit, more than one credit, or more than one of both debits and credits. It
is essentially a combination of several simple journal entries.
52) What are the accounting events that are frequently involved in compound
entries?
The accounting events that are frequently involved in compound entries are:
 Record multiple line items in a supplier invoice that address to different
expenses
 Record all bank deductions associated with a bank reconciliation
  Record deduction and payments related to a payroll
 Record the account receivable and sales taxes related to a customer invoice
53) Mention the types of accounts involved in double-entry book-keeping
Double-entry book-keeping includes five types of accounts:
 Income accounts
 Expense accounts
 Asset accounts
 Liability accounts
 Capital accounts
54) What are the rules for debit and credit for different accounts to increase
the amount in your business accounts?
The rules for debit and credit for different accounts are:
 For a capital account, credit to increase it and debit to decrease it.
 For an asset account, debit to increase it and credit to decrease it.
 For a liability account, credit to increase it and debit to decrease it.
 For an expense account, debit to increase it, and credit to decrease it.
 For an income account, credit to increase it and debit to decrease it.
55) List out the stages of double entry system
The stages of the double-entry system are:
 Recording of transactions in the journal
 Posting of a journal entry into the respective ledger accounts and then
preparing a trial balance
 Preparing final accounts and closing of books of accounts
56) What are the disadvantages of a double-entry system?
The disadvantages of the double-entry system are:
 If there are any compensatory errors, it is difficult to find out by this system
 This system needs more clerical labor.
 It is difficult to find errors if the errors are in the transactions recorded in the
books.
 The double-entry system is not preferable to disclose all the information of a
transaction, which is not properly recorded in the journal.
57) What is General ledger account?
The general ledger account is an account used to record all the information. It can be
expenses and income types that are recorded into separate accounts.
In this account debits and credits, transactions are entered in one place and kept
balanced.
58) What is the general classification of accounts that usually ledger account
involve?
The general classification of accounts that usually ledger account involves are:
 Assets: cash, accounts receivable
 Liabilities: accounts payable, loans payable
 Stockholders’ equity: common stock
 Operating revenues: revenues through sales
 Operating expenses: rent expense, salaries expense
 Non-operating revenues and gains: investment income, gain on disposal of
equipment
 Non-operating revenues and losses: interest expense, loss on disposal of
equipment
59) List things will not be included in a bank reconciliation statement
Things will not be included in a bank reconciliation statement are:
  Cheques dishonored not recorded in the cash book
 Direct payments made by the bank not entered in Cashbook
 Bank Charges or Interest debited by the bank.
 Cheques deposited but not cleared.
 Wrong debits given by the bank.
 Banks direct payment not entered in Cashbook.
60) When are revenues reported in the accounting period?
Revenues are reported in the accounting period when service or goods have been
delivered.
61) List down important cost control techniques
Important cost controlling techniques are:
 Budgetary control
 Labor control
 Material control
 Standard costing
 Overheads control
62) Mention whether the account “Cash” will be credited or debited when a
company pays a bill?
The account “Cash” will be credited when a company pays a bill.
63) What are assets minus liabilities?
Assets minus liabilities are defined as:
Assets minus liabilities = owners' equity / stockholder's
equity.
64) List the three basic elements of cost
The three basic elements of cost are 1) Material, 2) Labour, and 3) Expenses.
65) What is the main difference between accumulated depreciation and
depreciation expense?
The difference between accumulated depreciation and depreciation expense is that:
Accumulated depreciation is the total amount of depreciation that has been taken on
a company’s assets up to the date of the balance sheet.
Depreciation expense is the amount of depreciation that is reported on the income
statement.
66) List out some of the examples for liability accounts?
Some of the examples of liability accounts are:
 Accounts payable
 Accrued expenses
 Short-term loans payable
 Unearned or deferred revenues
 Installment loans payable
 Current portion of long-term debt
 Mortgage loans payable
67) How to adjust entries into account?
Entries can be adjusted into account by sorting entries into five categories:
 Accrued expenses: Expenses have been incurred, but the vendor’s invoices
are not generated or processed yet
 Accrued revenues: Revenues have been earned, but the sales invoices are
not generated or processed yet.
 Deferred revenues: Money was received in advance of having been paid or
earned.
 Deferred expenses: Money was paid for a future expense.
  Depreciation expense: An asset purchased in one period must be allocated
to expense in each of the accounting periods of the asset’s useful life.
68) Explain deferred asset with example
A deferred asset refers to a deferred debit or a deferred charge. An example of a
deferred charge is bond issue costs. These costs involve all of the fees or charges
that an organization incurs to register and issue bonds.
These fees are paid in a near time when the bonds are issued, but it will not be
expensed at that time.
69) What is Bank Reconciliation?
A bank reconciliation is a process done by a company. It ensures that the company’s
records are correct and that the bank’s records are also correct. These records can
be check register, balance sheet, a general ledger account, etc.
70) What is “deposit in transit”?
A deposit in transit is a check or cash that has been received and recorded by an
entity. It should not yet been entered in the records of the bank where the funds are
deposited.
71) What is an over accrual?
An over accrual is a condition where the estimate for an accrual journal entry is too
high. This estimate may apply to the accrual of expense or revenue.
72) What is the account receivable?
A short term amounts due from buyers to a seller, who have purchased goods or
services from the seller on credit is referred to as account receivable.
73) What are the activities that are included in the Cash Flow Statement?
The cash flow statement showcase the cash generated and used during the year or
months. Various activities that are involved for the cash flow are
 Operating activities: Business activities accounting to cash
 Investing activities: Sale and purchase of equipment or property
 Financial activities: Purchase of stock and own bonds
 Supplemental information: exchange of significant items that don’t involve
cash
74) What happens to the company’s “Cash Account” if it borrows money from
the bank by signing a note payable?
Due to double entry, the “cash account” will increase as such the liability account
increases.
75) Which account is responsible for interest payable?
The account which is responsible or affected by the interest payable is “Current
liability account.”
76) What is reversing journal entries?
Reversing journal entries are entries made at the beginning of an accounting period
to cancel out the adjusting journal entries. These entries are made at the end of the
previous accounting period.
77) Where do generally accruals appear on the balance sheet?
Accrued expenses usually tend to be extremely short-term. So you would record
them within the “current liabilities section” of the balance sheet.
78) List out some of the accrued expenses and the accounts to record them
Accrued expenses and the accounts are:
Wage accrual is entered with a credit to the “wages payable account.”
Interest accrual is entered with a credit to the “interest payable account.”
Payroll tax accrual is entered with a credit to the “payroll taxes payable account.”
79) Deferred taxation is a part of which equity?
Deferred taxation is a part of the owner’s equity.
80) What is a journal?
Journal is a book that is maintained regularly for recording various financial entries.
81) What is the equation for Acid-Test Ratio in accounting?
The equation for Acid-Test Ratio in accounting
Acid-Test Ratio = (Current assets - Inventory) / Current
Liabilities
82) List out things that fall under intangible assets
Things that fall under intangible asset are:
 Patents
 Copyrights
 Trademarks
 Brand names
 Domain names
83) What is a trial balance in accounting?
In accounting, the trial balance is an accounting report that lists the balances in each
of an organization’s general ledger accounts. This is done at the end of the posting
journal entry to ensure that there are no posting errors.
84) Where a cash discount should be recorded in a journal entry?
A cash discount should be recorded in a journal entry as a reduction of expense in a
cash account.
85) Why some asset accounts have a credit balance?
Some asset accounts have a credit balance due to:
 Receiving and posting an amount that was higher than the recorded
receivable.
 Expenses occurred faster than the agreed-upon prepayments.
 An error caused by posting an amount to a wrong account.
 The number of checks written exceeded the positive amount in the Cash
account.
 Continuing to amortize or depreciate an asset after its balance has reached
zero.
86) What is bad debt expense?
A Bad debt expense is the amount of an account receivable that is considered to
NOT be collectible.
87) What is the master account?
A master account has subsidiary accounts. A master account receivable could be
anything, it can be account receivable for various individual receivable accounts.
88) In which account does the unpresented cheque will get recorded?
The unpresented cheque will get recorded as a credit to the cash account in the
company’s General ledger.
89) What knowledge should financial accountant have?
A certified financial accountant should have knowledge about:
 Accounting/Bookkeeping principles and practices
 Reporting and analysis of financial data
 Auditing practices and principles
 Account management
 Budgets
  Software knowledge dealing with Accounting
 Knowledge of relevant laws, codes, and regulations
 Good soft skills
 Being a team player
 Ability to learn quickly and up skill
 Basic Technical skills
90) What are the three factors that can affect your cash flow and business
profitability?
The three factors that can affect your cash flow and business profit include:
 Cash flows from investing activities: It includes shares, bonds, physical
property, machinery, etc.
 Cash flows from operating activities: It does not include cash received from
other sources like investments.
 Cash flow from financing activities: It includes any activities that involve:
1. Dividend payments that the company made to its shareholders.
2. Any money that includes stock to the public.
3. Money borrower going to borrow from the lender.
91) What is accrual accounting?
Accrual Accounting is a method for measuring the performance and position of the
company by identifying economic events.
In this method, revenue is compared with the expenditures at the time in which the
transaction occurs rather than when the payment is made.
92) Explain the term account payable
Account payable is referred to as the amount the company owes to its suppliers, its
employees, and its partners. In other words, it is the basic cost levied on the
company to run a business process that is outstanding.
Account payable for one company may be account receivable for another firm or
company.
93) Explain the meaning of long-term notes payable is or long-term liabilities
Long-term notes payable or liabilities are referred for that loan that is not supposed
to due for more than a year.
These are the loans from banks or financial institution that are secured against
various assets on the balance sheet, such as inventories.
94) What is the difference between depreciation and amortization?
The difference between depreciation and amortization is:
Depreciation Amortization
Amortize means to write off or pay the
Depreciate means to lose the value of an
debt over a period of time. Amortization
asset due to its usage, wear, and tear,
can be for loans, or it can be for
outdated, etc.
Intangible assets.
The depreciation cost is calculated in terms Amortization cost is calculated in terms
of tangible assets like furniture, plant & of intangible assets like goodwill,
machinery, building, etc. trademark, loans, patents, etc.
The purpose of calculating depreciation The purpose of calculating amortization
costs recovery is also for cost recovery
The easiest or better way to calculate Amortization calculates the amount
depreciation is to know the loss of value of spent after the intangible assets
an asset over its life. throughout the life for that asset.
For example, a car worth $30,000 has For example, Pharmaceutical Company
estimated the lifetime of 10 years after that, spent $20 million dollars on a drug
 Depreciation Amortization
it will have no value in the market. The cost patent with a useful life of 20 years. The
or loss in value throughout these 10 years amortization value for that company will
is known as depreciation be $1 million each year
Various method for depreciation includes
Various method for amortization is
straight-line depreciation, declining balance
negative amortization, zoning
method, group depreciation method, unit of
amortization, business amortization, etc.
time/production depreciation method, etc.
95) What does the financial statement of the company include?
Financial statement of the company includes various information like:
 Balance Sheet ( Assets, liabilities, and equity)
 Income statement ( Profit or Loss statement)
 Equity statement
 Cash flow statement
96) What is working capital?
Working capital is a financial metric that calculates the resources available to the
company to finance its day-to-day operations. It is typically calculated by deducting
current liabilities from current assets.
97) What is ledger?
A ledger can be referred to as an accounting book that keeps the record of journal
entries in chronological order to individual accounts. The process of recording this
journal entries is known as posting.
98) Mention the types of ledgers
There are three types of ledger
 General ledger
 Debtors ledger
 Creditors ledger
99) What is GAAP?
GAAP means Generally Accepted Accounting Principle; it is a framework of
accounting, standards, procedures & rules determined by the professional
accounting industry and practiced by publicly traded U.S companies all over the
U.S.A.
100) Explain double-entry accounting with an example
Double-entry accounting is an accounting system that requires recording business
transactions or events in at least two accounts. It is the same concept of accounting,
where every debit account should be matched with a credit account.
For example, if a company takes a loan from a bank, it receives cash as an asset,
but at the same time, it creates a liability for a company.
This single entry will affect both accounts, the asset accounts, and the liabilities
accounts. It is referred to as double-entry accounting.
101) Explain what does the standard journal entry includes?
A standard journal entry includes, date of the business transaction, the name of the
accounts affected, amounts to be debited or credited, and a brief description of the
event.
102) What are liabilities?
Liability can be defined as an obligation towards another company or party. It may
consist of delivering goods, rendering services, or paying money. They are the
opposite of assets, and it may include:
 Account payable
 Interest and dividend payable
  Bonds payable
 Consumer deposits
 Reserves for federal taxes
 Short term loans
103) What is the basic difference between asset, equity, and liabilities?
Asset describes what financial institute (bank) or people owe.
Liabilities is something you owe people or organization.
Equity is something you own, for example, the amount of your house loan you paid
off.
104) Explain nominal accounts with example
A nominal account is a type of account that contains income and expenses. For
example, wages account, salary account, etc.
105) What is double-entry bookkeeping?
Double-entry bookkeeping is a principle of accounting where every debit entry has a
corresponding credit. Therefore, the total debt is equal to the total credit.
106) What is the primary difference between the trial balance and balance
sheet?
Trail Balance Balance Sheet
A balance sheet is a statement that shows
A trial balance is basically a list of
the liabilities, equity, and assets, of
balances in the ledger account.
organization.
Trail balance is used to check the
The balance sheet is used to ascertain its
arithmetical accuracy in recording and
financial position on a particular date.
posting.
107) Differentiate between account payable and account receivable
Account Payable Account Receivable
It is the amount an organization owes It is the amount collected by a company
to purchase services or goods on because of the selling of goods or services
credit. on credit.
Accounts payables are liabilities. Accounts receivables are assets.
108) What are the most common errors in accounting?
The most common errors in accounting are:
 Compensating error
 Errors of commission
 Errors of omission
 Errors of principle
109) What are the famous accounting applications?
Famous accounting applications are:
 CGram Software
 Microsoft Small Business Financials
 Microsoft Accounting Professional
 Financial Force
 Microsoft Dynamics AX
110) Mention four types of special journals
Four types of special journals are:
 Sales journals
 Cash payments journals
 Purchases journals
 Cash receipts journals
111) What are accounting transactions?
Accounting transactions refer to the execution of the user program that contains a list
of actions.
112) Define creative accounting
Creative accounting is a practice to create a picture that is not technically correct
from the perspective of the intended user.
113) What Is accounting normalization?
Accounting normalization is a process of removing items from the statement of
income or balance sheet. Once the normalization process is done, the result shows
the future earning capacity of the buyer.
114) What is a normative theory?
The normative theory is a theory that prescribes how the accounting process should
be done.
115) Explain computerized accounting?
Computerized accounting is a method in which financial information is collected,
processed, and summarized into financial reports.
The purpose of this accounting is to provide information used for decision making. It
can be viewed as a process that converts data into helpful information.
116) What is accounting ethics?
Accounting ethics is a field of applied judgments, ethics, and the study of moral
values.
117) What do you mean by vouching?
Vouching is a process of checking the voucher authentication maintain by the
management using respective supportive documents.
118) What is an EA in Accounting?
The full form of EA is Enrolled, Agent. It is a tax advisor who has unlimited practice
rights. EA represents as a taxpayer and collects and audits, financial transactions.
119) What Is Payroll?
The term payroll is defined as a list of employees who get paid by the organization. It
refers to the money employer pays to their employees.
120) Define Payroll Source Documents
The Payroll source documents are timesheets of the employee.
 It is used to record the task completed by the employee.
 These records are audited by the labor department and the Equal
Employment Opportunity Commission.
 Source documents are must be kept into the payroll source folder.
121) What is Ratio Analysis?
Ratio analysis is the analysis of various goods in the business financial statement.
122) What are non-performing assets?
A non-performing asset is an account of borrower, that has been classified by a
financial institution or bank. It should be as per guidelines given by RBI.
123) Explain various methods of calculating depreciation in details
Various methods of calculating depreciation are:
 Double declining method: This method is used to calculate book value,
which is multiplied by a fixed depreciation rate.
 Units of production method: It is a way of charging depreciation on assets.
This method is used when the asset’s value is closer to the units produces
then years it is in used.
  Straight-line method: It can be calculated by dividing the difference between
the cost of assets and its salvage value by the expected years to be used.
 Sum of year digit method: This method is based on the assumption that the
assets productivity decreases with the passage of time.
 Sinking fund method: A technique which is used when the cost of replacing
asset is too high.
124) Define fixed asset
Fixed asset are assets which are tangible in nature. It is not used to sell in the near
future and from which future benefits are derived.
125) What is BEP?
BEP or Break Event Point can be defined as a situation in which the company
neither gets profit nor no loss. It involves the activity in which total revenues equal
total costs.
126) Define cost sheet
The cost sheet is a cost statement of product for a specific period of time. It contains
direct and indirect expenses involved in producing a product.
127) What is Chargeback?
A chargeback is a process in the industry where wholesaler request amount, which
is the difference between the price of manufacture and wholesaler.
128) What Is CMMI?
CMMI stands for Capability Maturity Model Integration. It is an approach to improve
the organization’s approach to get the essential elements of the process.
129) What is CMM?
Candidate can answer this question as:
CMM is a standard for measuring the maturity of a company’s software development
processes. It is judged by IT service providers to deliver high-quality software.
130) Explain Cost Sheets
The cost sheet contains both direct and indirect expenses incurred in producing any
product. The classifying the expenses incurred based on administration, office,
distribution, and selling overheads.
131) What is an invoice?
Invoice is a statement that contains:
 Invoice Number
 Invoice date
 Name and address of the person
 Name and address of the buyer
 Description of services or goods involved
 Applicable rates and taxes with percentages
 Rate of the service or goods.
 Quantity of the services and goods.
 Price of the services and goods.
 The invoice should be signed by the person making it.
 Conditions of making the payment.
132) Differentiate between internal audit and statutory audit
Candidate can answer the question of interviewer like, the difference between
internal audit and statutory audit is:
Internal audit Statutory audit
An internal audit is an inspection conducted by A statutory audit is an inspection
the internal auditors of the organization. conducted by the external auditors.
It is not mandatory for the company. It is mandatory for the company.
133) What is the main difference between billable and Non-billable expenses?
The main difference between Billable and Non-billable Expenses is:
Billable expenses are the expenses incurred by the seller on behalf of the customer
in performing service or duties.
Non-billable expenses are the expenses incurred by the seller for carrying out
responsibilities.
134) What is the abbreviation of WCC?
The abbreviation of WCC is Working Capital Cycle.