Accounting Interview Questions and Answers

1. Corporate governance ensures that managers look after the interest of:
(A) the government
(B) the board of directors
(C) the stakeholders
(D) the general public

2. Outstanding expense is a:
(A) personal account
(B) real account
(C) nominal account
(D) none of these

3. The process of converting share certificates in physical form into electronic form:
(A) Rematerialisation
(B) Dematerialisation
(C) Gematerinlisation
(D) none of the above

4. The ratio used to evaluate the ability of a firm to meet its short term obligation is
(A) solvency ratios
(B) profitability ratios
(C) liquid ratios
(D) activity ratios

5. The origin of auditing can be traced buck to:
(A) 1914
(B) 1494
(C) 1956
(D) 1949

6. “Statistics is the science of counting” whose statement
(A) Bowley
(B) Kimbal
(C) Karl Pearson
(D) Boddington

7. Provides accounting information useful to management
(A) financial accounting
(B) profit. and loss account
(C) ledger
(D) management accounting

8. It is a budget in capsule form:
(A) flexible budget
(B) sales budget
(C) master budget
(D) fixed budget

9. The evidence of contract. of insurance is:
(A) Policy
(B) subject. Matter
(C) insurer
(D) premium

10. The hire purchase system is regulated by Hire Purchase Act:
(A) 1969
(B) 1911
(C) 1970
(D) 1972

11. The pioneer in the field of leasing company was the establishment of the “First Leasing Company of India Ltd’ in:
(A) Calcutta
(B) Madras
(C) Bombay
(D) Delhi

12. Translating messages into words:
(A) Encoding
(B) Communication
(C) Feedback
(D) decoding

13. When shares are forfeited the share capital account is debited by:
(A) paid up amount
(B) called up amount
(C) calls in arrear
(D) nominal value of shares

14. CII stands for:
(A) Cost Inflation Index
(B) Cost Interest Index
(C) Capital Inflation Index
(D) Capital Interest Index

15. The concept of marketing mix was developed by:
(A) Philip Keller
(B) Clark and Clark
(C) W.J. Stanton
(D) N.H. Borden

16. Section 89 (1) of Income Tax Act deals with relief for:
(A) Advance salary
(B) Arrear salary
(C) Compensation
(D) Gratuity

17. An agreement to do an impossible act is:
(A) Voidable
(B) Valid
(C) Void
(D) illegal

18. The registration of a Trade Mark shall he for a period of:
(A) 5 years
(B) 20 years
(C) 40 years
(D) 10 years

19. Father of Management Process School:
(A) Henry Fayol
(B) Elton Mayo
(C) H.A. Simon
(D) R.H. Johnson

20. The Central Chief Information Commissioner shall be appointed by:
(A) Prime Minister
(B) Chief Justice of India
(C) The President of India
(D) Council of Central Ministers

21. Motivation theory ‘X’ and theory ‘Y’ is developed by:
(A) Herzberg
(B) M.C.Gregorer
(C) Victor Vroom
(D) None

22. Capital Reduction Account is used in the case of:
(A) Internal reconstruction
(B) External reconstruction
(C) Amalgamation of companies
(D) Absorption of one company by another

23. For calculating market value using P.E. ratio, it is necessary to know:
(A) raw of dividend
(B) average profit
(C) earning per share
(D) super profits

24. If the net profit for a period is Rs. 50,000. after crediting a gain of sale of assets Rs. 5,000 and debiting depreciation of Rs. 20,000 on Fixed Assets. the fund from operations will be:
(A) Rs. 70,000
(B) Rs. 65,000
(C) Rs. 75,000
(D) Rs. 55,000

25. A bank which is included in the second schedule of Reserve Bank of India Act:
(A) Scheduled Bank
(B) Non Scheduled Bank
(C) State Co-operative Bank
(D) Central Co-operative Bank

26. Position of Imports and Exports of a country as against other countries:
(A) Balance of payments
(B) Balance Of trade
(C) Terms of trade
(D) Dumping

27. Transfer of funds from one source to another through electronic media:
(A) ECS
(B) Tele banking
(C) RTES
(D) EFT

28. The objectives of companies are given in the:
(A) articles of association
(B) prospectus
(C) memorandum of association
(D) subsidiary rules

29. Depletion method of depreciation is mostly useful in the case of:
(A) Livestock
(B) loose tools
(C) mines
(D) none of these

30. Budget in a:
(A) plan of operation
(B) statements of probable events
(C) collection of historical financial data
(D) none of these

31. Functional level strategy is also known as:
(A) corporate level strategy
(B) operating level strategy
(C) business level strategy
(D) all of these

32. A dollar denominated instrument tradable of stock exchange in Europe:
(A) FRB
(B) EDR
(C) FCCB
(D) GDR

33. AS-6 relates to:
(A) accounting policies
(B) valuation of inventories
(C) depreciation accounting
(D) contingencies

34. B Ltd. forfeited 20 shares of Ra. 10 each, of Rs. 8 is called up are forfeited for the non-payment of first call of Rs. 2 per share. Of these 15 were re-issued at Rs. 6 per share. The amount to be transferred to capital reserve is:
(A) 60
(B) 30
(C) 48
(D) none

35. The insurance effected by an insurance company with another insurance company:
(A) reinsurance
(B) double insurance
(C) multiple insurance
(D) none of these

36. A statutory reserve is n compulsory reserve kept under Banking Regulation Act as per Section:
(A) 9
(B) 16
(C) 15
(D) 17

37. Offering of ESOS to employees requires:
(A) resolution by the board
(B) ordinary resolution
(C) special resolution in general meeting by the shareholders
(D) permission from SEBI

38. Statutory report is necessary in the case of:
(A) Public limited companies
(B) PERA companies
(C) Foreign companies
(D) Private limited companies

39. Preliminary expenses is an example of:
(A) current asset
(B) prepaid expenses
(C) tangible asset
(D) fictious asset

40. Unrehearsed speech is:
(A) Impromptu
(B) reading from the pro-text.
(C) Extempore
(D) memorising

41. The first credit rating agency in India is:
(A) ICRA
(B) CARE
(C) CRISIL
(D) ICSA

42. Accounting Standard Board in India was constituted on:
(A) June 1977
(B) April 1977
(C) Jan 1978
(D) None of these

43. Units of finished product not upto the standard and can be rectified:
(A) Defective
(B) Spoilage
(C) Scrap
(D) none

44. The most suitable average for index number is:
(A) Mean
(B) harmonic mean
(C) median
(D) geometric mean

45. Combination of different securities with varying risk and return:
(A) SAP
(B) CAP
(C) Portfolio
(D) OCP

46. Teaming and lading is a method of misappropriation of
(A) Goods
(B) Cash
(C) petty cash
(D) accounts

47. Misstatements in prospectus by the auditor:
(A) civil liability
(B) criminal liability
(C) liability for negligence
(D) liability for misfeasance

48. The first general meeting of the company:
(A) Statutory meeting
(B) Annual general meeting
(C) Extra ordinary meeting
(D) Emergency meeting