Part 1:

  1. 1. Who is account manager?

An account manager is a person who works for a company and is responsible for the management of sales, and relationships with particular customers. The account manager does not manage the daily running of the account itself. They manage the relationship with the client of the account they are assigned to. Generally, a client will remain with one account manager throughout the duration of hiring the company. Account managers serve as the interface between the customer service and the sales team in a company. They are assigned a company’s existing client accounts. The purpose of being assigned particular clients is to create long term relationships with the portfolio of assigned clients. The account manager serves to understand the customer’s demands, plan how to meet these demands, and generate sales for the company as a result.

  1. 2. Explain accounting?

Accounting, or accountancy, is the measurement, processing and communication of financial information about economic entities. Accounting, which has been called the “language of business”, measures the results of an organization’s economic activities and conveys this information to a variety of users including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. The terms accounting and financial reporting are often used as synonyms.

  1. 3. What are the several fields of accounting?

Accounting can be divided into several fields including financial accounting, management accounting, auditing, and tax accounting. Financial accounting focuses on the reporting of an organization’s financial information, including the preparation of financial statements, to external users of the information, such as investors, regulators and suppliers; and management accounting focuses on the measurement, analysis and reporting of information for internal use by management. The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system.

  1. 4. What are the responsibilities of account manager?

★ Generate sales for a portfolio of accounts and reach the company’s sales target.
★ Identify new sales opportunities within existing accounts to remain a client-account manager relationship by up-selling and cross-selling.
★ Manage and solve conflicts with clients.
★ Interact and coordinate with the sales team and other staff members in other departments working on the same account.
★ Establish budgets with the client and company.
★ Meet time deadlines for accounts.

  1. 5. What is key account?

Key accounts provide a lot of business because they contain a small number of clients which contribute a large portion of the company’s sales. According to research, sales from a company’s key accounts has increased from 23% in 1975 to 60% currently.

  1. 6. What is the purpose of an account manager?

To maintain the company’s existing relationships with a client or group of clients, so that they will continue using the company for business.

  1. 7. What are the basic principles of accounting?

★ Principles of Accounting was often the title of the introductory course in accounting. It was also common for the textbook used in the course to be entitled Principles of Accounting.
★ Principles of accounting can also refer to the basic or fundamental accounting principles: cost principles, matching principles, full disclosure principles, materiality principles, going concern principles, economic entity principles, and so on. In this context, principles of accounting refers to the broad underlying concepts which guide accountants when preparing financial statements.
★ Principles of accounting can also mean generally accepted accounting principles (GAAP). When used in this context, principles of accounting will include both the underlying basic accounting principles and the official accounting pronouncements issued by the Financial Accounting Standards Board (FASB) and its predecessor organizations. The official pronouncements are detailed rules or standards for specific topics.

  1. 8. Tell me what is nominal account in accounting?

Nominal accounts in accounting are the temporary accounts, such as the income statement accounts. In other words, nominal accounts are the accounts that report revenues, expenses, gains, and losses. (The owner’s drawing account is also a temporary account, even though it is not an income statement account.)
Nominal or temporary accounts are closed at the end of each accounting year. This means that their account balances are transferred to a permanent account. This closing process allows the nominal accounts to start the next accounting year with zero balances.

  1. 9. Do you know how petty cash affect expenses?

Petty Cash is a current asset account; it is part of a company’s cash. A petty cash fund is established by cashing a check drawn on the company’s regular checking account and giving the currency and coins to the petty cash custodian. No expense is involved in this transaction since the company is simply creating the asset account Petty Cash by reducing another asset account.
An expense occurs when the company pays the postal carrier for the postage that is due on the incoming mail. Another expense occurs when the company sends an employee to pick up some needed supplies. If these expenses are paid with money in the petty cash fund, the currency and coins held by the petty cash custodian will decrease and in place of that money the custodian will have petty cash receipts or petty cash vouchers. The expenses will be recorded in the general ledger when the petty cash fund is replenished.

  1. 10. Explain deferred revenue?

Deferred revenue is not yet revenue. It is an amount that was received by a company in advance of earning it. The amount unearned (and therefore deferred) as of the date of the financial statements should be reported as a liability. The title of the liability account might be Unearned Revenues or Deferred Revenues.

  1. 11. What is columnar in accounting?

Prior to electronic worksheets, accountants had several pads of paper with a varying number of columns (and rows) preprinted on them. The pads of paper were labeled as columnar pads. The preprinted paper in these pads allowed accountants and bookkeepers to easily prepare manual spreadsheets.
With the introduction of VisiCalc (the original electronic spreadsheet) followed by other electronic spreadsheets or worksheets (e.g., Lotus 1-2-3, Excel), the use of columnar pads of paper declined significantly.

  1. 12. What is equity for account manager?

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. For example, some restate the basic accounting equation from Assets = Liabilities + Owner’s Equity to Assets = Equities.

  1. 13. What is the defination of prepaid insurance a short term asset?

The definition of a short term or current asset is cash and other assets that will turn to cash or will be used up or consumed within one year of the balance sheet date. If a company’s operating cycle is longer than one year, the definition allows for assets turning to cash, used up, or consumed during the operating cycle to be reported as a current asset.

  1. 14. Tell me about term organic growth mean?

Organic growth often refers to the growth in a company’s sales that did not occur because of an acquisition of another company. Expressed another way, organic growth is the internal growth or the growth from its existing businesses-not from the businesses it acquired during the period.

  1. 15. Explain chart of accounts?

The chart of accounts is a listing of the general ledger accounts to which amounts can be posted. The chart of accounts is a helpful tool for identifying the best account for recording a transaction.
In some accounting software the chart of accounts may be the means to open new general ledger accounts and to control their position in the financial statements.

  1. 16. What is window dressing?

Window dressing refers to actions taken or not taken prior to issuing financial statements in order to improve the appearance of the financial statements.

  1. 17. What is statement of income?

This financial statement is also known as the statement of operations, statement of earnings, or income statement. It reports the corporation’s revenues, expenses, gains and losses (except for items stipulated as other comprehensive income) for a period of time such as a year, quarter, 13 months, etc.

  1. 18. What is statement of comprehensive income?

This financial statement begins with the bottom line of the income statement and then lists the items considered to be other comprehensive income. Some of these items involve currency translation, hedging, available-for-sale securities, and pensions.

  1. 19. What is balance sheet in accounting?

This statement of financial position reports a corporation’s assets, liabilities and stockholders’ equity as of the final instant of the date shown in its heading (December 31, January 31, June 30, etc.)

  1. 20. What is statement of cash flows?

This statement reports the major causes for the change in cash and cash equivalents during the accounting period. The cash flows are presented as operating, investing, or financing activities.

  1. 21. What is statement of stockholders equity?

This financial statement is often presented as the statement of shareholders’ equity, statement of equity, statement of changes in stockholders’ equity, etc. It reports all of the changes in stockholders’ equity which occurred during the accounting period.

  1. 22. What are noncurrent assets in accounting?

A noncurrent asset is an asset that is not likely to turn to unrestricted cash within one year of the balance sheet date. (This assumes that the company has an operating cycle of less than one year.)
A non-current asset is also referred to as a long-term asset.
Non-current assets are reported under the following balance sheet headings:
★ Investments (long-term)
★ Property, plant and equipment
★ Intangible assets
★ Other assets

  1. 23. What is fiscal year for account manager?

A fiscal year usually refers to an accounting year that does not end on December 31. (The accounting year of January 1 through December 31 is usually referred to as a calendar year.) Some examples of the fiscal years used by U.S. corporations include:
★ The 12 months of February 1 through January 31
★ The 12 months of October 1 through September 30
★ The 12 months of June 1 through May 31
★ The 52 weeks (four 13-week quarters) ending on the Saturday closest to January 31 (This will require an occasional fiscal year of 53 weeks since 52 weeks X 7 days = 364 days vs. 365 days per year.)

  1. 24. Tell me about sales?

Sales refers to the revenues earned when a company sells its goods, products, merchandise, etc. (If a company sells one of its non-current assets that was used in its business, the amount received is not recorded in its Sales account.)
The amounts recorded at the time of the sales transaction is also known as gross sales since there may be subsequent subtractions for sales returns, sales allowances, and early payment discounts. (Gross sales minus these subtractions results in the amount of net sales.)

  1. 25. What are certain gains and losses?

One example is the disposal of a non-current asset for an amount that is different from its book value.

  1. 26. What are expenses?

These include the cost of goods sold, SG&A expenses, and interest expense.

  1. 27. What are revenues?

These are the amounts earned through the sale of goods and the providing of services.

  1. 28. What is income statement?

The income statement is a key financial statement which reports on a company’s profitability during a relatively short period of time such as the past year, month, 13 weeks, etc. The heading of the income statement informs the reader of the period covered.
The main components of the income statement are:
★ Revenues
★ Expenses
★ Certain gains and losses

  1. 29. Explain an accounting period?

An accounting period is a period of time such as the 12 months of January 1 through December 31, or the month of June, or the three months of July 1 through September 30. It is the period for which financial statements are prepared. For example, the income statement and the cash flow statement report the amounts occurring during the accounting period, and the balance sheet reports the amounts of assets and liabilties as of the final moment of the accounting period.

  1. 30. Tell me what is gross profit?

Gross profit is net sales minus the cost of goods sold. (Some people use the term gross margin and gross profit interchangeably. Others use gross margin to mean the gross profit ratio or the gross profit as a percentage of net sales.)
Gross profit is presented on a multiple-step income statement prior to deducting selling, general and administrative expenses and prior to non-operating revenues, non-operating expenses, gains and losses.

  1. 31. Explain assets?

Assets are sometimes defined as resources or things of value that are owned by a company. Some examples of assets which are obvious and will be reported on a company’s balance sheet include: cash, accounts receivable, inventory, investments, land, buildings, and equipment.

  1. 32. What is net income?

Revenues and gains minus expenses and losses.

  1. 33. What is loss on disposal, net of tax?

An accounting loss on the sale of a business segment minus the income taxes that were saved (avoided, sheltered) because the loss was also deductible on the company’s income tax return.

  1. 34. What is net cash provided by operating activities?

The combination of the cash inflows and the cash outflows from a company’s operations (activities outside of its investing and financing activities).

  1. 35. What is accounts receivable, net?

The recorded amount of accounts receivable minus the allowance for doubtful accounts.

  1. 36. What is net property, plant and equipment?

The recorded costs of the tangible non-current assets used in the business minus the related accumulated depreciation.

  1. 37. What is net realizable value?

The amount to be received in the ordinary course of business minus the costs of completion and disposal.

  1. 38. What is “net” for account manager?

Net usually refers to the combination of positive and negative amounts. For example, the amount of net sales is the combination of the amount of gross sales (a positive amount) and some negative amounts such as sales returns, sales allowances, and sales discounts. Hence, if gross sales are 990 and sales returns are 10, sales allowances are 5, and sales discounts 20, the net sales are 955.

  1. 39. Explain balance sheet accounts?

Balance sheet accounts are one of two types of general ledger accounts. Income statement accounts make up the other type. Balance sheet accounts are used to sort and store transactions involving assets, liabilities, and owner’s or stockholders’ equity. Examples of a corporation’s balance sheet accounts include Cash, Accounts Receivable, Investments, Buildings, Equipment, Accumulated Depreciation, Notes Payable, Accounts Payable, Payroll Taxes Payable, Paid-in Capital, Retained Earnings, etc.
Balance sheet accounts are described as permanent or real accounts because at the end of the accounting year the balances in these accounts are not closed. Instead, the end-of-the-accounting-year balances will be carried forward to become the beginning balances in the next accounting year. This is different from the income statement accounts, which begin each accounting year with zero balances.

  1. 40. Describe liability account?

A liability account is a general ledger account in which a company records its debt, obligations, customer deposits and customer prepayments, certain deferred income taxes, etc. that are the result of a past transaction. Common liability accounts under the accrual method of accounting include Accounts Payable, Accrued Liabilities (amounts owed but not yet recorded in Accounts Payable), Notes Payable, Unearned Revenues, Deferred Income Taxes (certain temporary timing differences), etc.

  1. 41. Explain the statement of cash flows?

The statement of cash flows is one of the main financial statements. It is to accompany the income statement, balance sheet, and statement of stockholders’ equity. The statement of cash flows (also known as the cash flow statement) reports.
★ The major sources and uses of cash during the period of the income statement.
★ A reconciliation of the change in an organization’s cash and cash equivalents (which are reported on the beginning and ending balance sheets).
★ Supplementary information including the amount of income taxes paid, the amount of interest paid, and significant noncash investing and financing activities (such as issuing common stock in exchange for land).

  1. 42. Explain accrual method?

The accrual method of accounting reports revenues on the income statement when they are earned even if the customer will pay 30 days later. At the time that the revenues are earned the company will credit a revenue account and will debit the asset account Accounts Receivable. When the customer pays 30 days after the revenues were earned, the company will debit Cash and will credit Accounts Receivable.
The accrual method of accounting also requires that expenses and losses be reported on the income statement when they occur even if payment will take place 30 days later. For example, if a company has a $15,000 repair done on December 15 and the vendor allows for payment on January 15, the company will report a repair expense and a liability of $15,000 as of December 15. On January 15 the company will credit Cash and will debit the liability account.

  1. 43. Define the stated interest rate of a bond payable?

The stated interest rate of a bond payable is the annual interest rate that is printed on the face of the bond. The stated interest rate multiplied by the bond’s face amount (or par amount) results in the annual amount of interest that must be paid by the issuer of the bond. For example, if a corporation issues $10,000,000 of bonds having a stated interest rate of 6%, it is promising to pay interest of $600,000 each year (usually $300,000 semiannually).
The stated interest rate of a bond payable is also known as the face interest rate, the nominal interest rate, the contractual interest rate, and the coupon interest rate.

  1. 44. Tell me about selling, general and administrative expenses?

These costs are reported as operating expenses on the income statement because they pertain to operating the main business during that accounting period. These costs may have expired, may have been used up, or may not have a future value that can be measured.

  1. 45. Explain about cost of goods sold?

These costs are reported as operating expenses on the income statement because of the matching principle. The revenues from the sale of merchandise must be matched with the cost of the merchandise that is sold.

  1. 46. What is operating expenses?

Operating expenses are the costs associated with a company’s main operating activities and which are reported on its income statement.

  1. 47. Tell me about premium on bonds payable?

Premium on bonds payable (or bond premium) occurs when bonds payable are issued for an amount greater than their face or maturity amount. This is caused by the bonds having a stated interest rate that is higher than the market interest rate for similar bonds.

  1. 48. Describe ordinary annuity?

In accounting, an ordinary annuity refers to a series of identical cash amounts with each amount occurring at the end of equal time intervals.
An ordinary annuity is also known as an annuity in arrears.

  1. 49. Tell me what is the difference between revenues and receipts?

A company’s revenues are amounts it has earned as the result of business activities such as selling merchandise or performing services. Under the accrual method of accounting, revenues are reported on the income statement in the period in which they are earned even when a dependable customer is allowed to pay 60 days later. In this example, when the revenues are earned the company will credit a revenues account and will debit the asset account Accounts Receivable.

  1. 50. You majored in philosophy. How did that prepare you for this career?

Philosophy didn’t prepare me for a career in accounting at all. But it did force me to become philosophical about my prospects. After two years of trying to figure out what to do with my life, I visited Chicago one weekend, and was absolutely spell bound by the gorgeous architecture all around me.
I came home, applied to architecture schools all over the country, and was accepted by one of the best. I’ve never looked back. This is definitely the career that I was meant to be in.

  1. 51. You were fired twice. How did that make you feel?

After I recuperated from the shock both times, it made me feel stronger. It’s true that I was fired twice, but I managed to bounce back both times and land jobs that gave me more responsibility, paid me more money, and were at better firms.
The morale here is very high. I’ve been exposed to the “seamy underbelly” of this business, but I’m still passionate about working in it.

  1. 52. Suppose if you knew that things were rocky, why didn’t you get out of the company sooner?

I was working so hard to keep my job while everyone around me was being cut that I didn’t have any time left over to look for another job. With all of the mergers that have been happening in our field, layoffs are a way of life. At least I gave it my best shot!

  1. 53. Why should I let you experiment on my nickel? You have already changed careers before?

As a career-changer, I believe that I’m a better employee because I’ve gained a lot of diverse skills from moving around. These skills help me solve problems creatively.

  1. 54. Tell me about your biggest weakness that’s really a weakness, and not a secret strength?

I am extremely impatient. I expect my employees to prove themselves on the very first assignment. If they fail, my tendency is to stop delegating to them and start doing everything myself.
To compensate for my own weakness, however, I have started to really prep my people on exactly what will be expected of them.

  1. 55. Suppose if you work here for five years and don’t get promoted? Many of our employees don’t. Won’t you find it frustrating?

I consider myself ambitious, but I’m also practical. As long as I am continuing to learn and grow within my position, I’ll be a happy camper. Different companies promote people at different rates, and I’m pretty confident that working for you will keep my motivated and mentally stimulated for several years to come.

  1. 56. Tell me will you be out to take my job?

Maybe in about twenty years, but by then, I suspect you’ll be running the entire company and will need a good, loyal lieutenant to help you manage this department!

  1. 57. What duties are performed by account manager?

An account manager supervises account activities of a business. A hiring organization may look for a person who can demonstrate her confidence in the position with relevant experience in the position and the ability to make quick decisions. Her experience should bring strong communication skills to work with her team to effectively to meet deadlines and achieve the company’s targets.

  1. 58. Tell me about your track record for consistently achieving your targets?

An interviewer expects an account manager to be efficient in knowing how to meet targets within deadlines. He may ask the candidate about his track record for achieving targets. With this question, he gives the candidate an opportunity to provide examples of goals and strategies to achieve them. The interviewer may look for the candidate’s strong communication skills as a vital tool in the candidate’s examples.

  1. 59. What was the tough decision you had to make quickly?

An employer may seek an account manager with the ability to make decisions in a fraction of a section. If the interviewer asks a candidate a question about making quick decisions, the candidate should be able to provide an incident, the choices she had and the reasons for the decision she made. Her incident may involve a new credit policy, lowering a price for volume dealers, or other incidents with long-term effects on a business. The candidate could end the response with her decision and the outcome.

  1. 60. Which work environment do you prefer?

In addition to accounting activities, an account manager holds a management position that involves company relations to interact effectively with staff. With a question related to a preferred work environment, an interviewer is probing the candidate’s leadership abilities and interpersonal skills. A candidate who chooses an environment in which he can interact to offer support and feedback, may be preferred to a candidate who prefers to sit behind a desk.

  1. 61. 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.

  1. 62. Tell me what is important to effective market analysis?

Generally speaking, it is important to do research on a regular basis in relation to every individual client or category of clients. Effective research assesses current situations to project future developments and opportunities for the company. It studies competitors and proposes improvements.

  1. 63. What are your tactics, techniques, and sales methods to increase revenues?

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.

  1. 64. What 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.

  1. 65. What makes account manager successful?

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.

Part 2:

  1. 1. What are purposes of maintaining control ledgers?

Purposes of maintaining control ledgers are:
★ Sundry Debtors
★ Sundry Creditors
★ Advances to Staff

  1. 2. Tell me how to book a letter of credit in your books?

The Money Behind a Letter of Credit.
A bank promises to pay on behalf of a customer, but where does the money come from? The bank will only issue a letter of credit if they know the buyer will pay. Some buyers have to deposit (or already have) enough money to cover the letter of credit, and some customers use a line of credit with the bank. Sellers must trust that the bank issuing the letter of credit is legitimate.

  1. 3. How to place journal entry for purchase order in books of account?

Generally there is no journal entry at the time when one receives a purchase order as this receipt of purchase order cannot be recognized as revenue at this point of time.
But under following circumstance there would be an entry:
when any advance is received:
Cash/ Bank Dr
Party account

  1. 4. What is funds flow statement?

A fund flow statement or a cash flow statement records the changes in monetary funds over a period of time, usually by comparing the latest position at balance sheet date with the corresponding monetary position a year ago.

  1. 5. Does various elements of business affect fund/cash flow?

There are various elements of business that affect fund/cash flow. These include such things as increased sales, reductions or increases in debtors, longer or shorter times in paying creditors, repayments of loans, etc., a summary of which should be shown on separate lines of the statement. It can start with a section listing the elements that contribute to an increase in cash, then the next section lists those items which have contributed to a decrease in cash.

  1. 6. Described Variance Analysis with Example?

Variance analysis in budgeting or management accounting in general is a tool of budgetary control by evluation of performance by means of variance between budgeted amount, planned amount or standard amt and the actual amt incurred/sold.
Variance can be carried out for both revenue & cost. Variance analysis hepls the management to know the present cost & then control the future cost.

Examples includes sale price variance, sales quantity variance, sales mix variance.

  1. 7. Define GPSD in accounting?

GPSD is a service daemon that monitors one or more GPSes or AIS receivers attached to a host computer through serial or USB ports, making all data on the location/course/velocity of the sensors available to be queried on TCP port 2947 of the host computer. With gpsd, multiple location-aware client applications (such as navigational and wardriving software) can share access to receivers without contention or loss of data. Also, gpsd responds to queries with a format that is substantially easier to parse than the NMEA 0183 emitted by most GPSes. The GPSD distribution includes a linkable C service library, a C++ wrapper class, and a Python module that developers of gpsd-aware applications can use to encapsulate all communication with GPSD.

Besides GPSD itself, the project provides auxiliary tools for diagnostic monitoring and profiling of receivers and feeding location-aware applications GPS/AIS logs for diagnostic purposes.

  1. 8. Which procedures are in place to ensure that a sponsored project is carried out in compliance with the terms, conditions and financial management and reporting requirements of both the municipality and provincial treasury?

Suppose the Bank has granted the loan for specific project for example to invest in the additional capacity production of the company by investing in new equipment.Now the Compliance towards the corporation is to follow the procedure and make the budget plan,Financial Reporting,Accounting and Management Plan,Operational plan accordingly.Prior to Investment it has to take due consideration from the Municipality for Space Requirement for additional equipment,Lease Rent,Development fees,Permission fees and other charges.In case of Provincial Treasury budget for Increase in Treasury due to new Project according to compliance.

  1. 9. Define Budgeting?

It is forecasting of expenses/income of company which can made by our past records or by some assumption.

  1. 10. Can you please explain the difference between cash basis and accrual basis Balance Sheet?

Under cash system of accounting, transactions are recorded in books on the basis of their actual payment or receipt made.
Under the accrual basis of accounting, the transaction are record on their occurrence in the business regardless of actual payment or receipt is made, and recognizes the assets and liabilities accordingly. Provisions are made for all known losses and obligations are recorded for the period to which it relates to in the books.

  1. 11. Who is responsible for maintaining Accounts receivable in an organization?

This is based on Company, In MNC’s different works are done by different people but in small companies all accounting is done by accountant which includes Receivables, Payables, Banks,cash etc.

  1. 12. How many methods are used to calculate depreciation?

3 popular types:
★ Straightline
★ Declining balance
★ Sum-of-Years’ Digits Method

  1. 13. Define MIS reports?

A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solve business problems such as costing a product, service or a business-wide strategy.

  1. 14. How to do finalization of accounts?

Finalization of accounts is preparing financial reports in comparison with briefing of companys financial reports. Which include Income, Cash flows, Balance Sheet, Policies, disclosures, and Equity.

  1. 15. What is MIS report in accounting and how to prepare it?

MIS report means Management Information System. MIS is prepared to know the day to day transactions of a company. Simply to know the position of the company (profitability or loss).

Income (sales-export, domestic, job work) – Expenditure (manufacturing, administrations & Financial expenses).

  1. 16. Define an aging report in Accounting?

Aging Report is called Vendor wise & Customer Wise Outstanding – Report
Example: 30 days , 30 to 60 days and crossed 180 days… – Balance Report

  1. 17. Define Contingent Liability?

Contingent Liability is the liability which may / may not occour in future… So, it is shown as notes rather than in balance sheet… Once, the liability become’s real then it will recorded in books.

  1. 18. What are the various items fall in balance sheet?

(A)asset side items are:
1. cash in hand
2. cash at bank
3. debtor
4. land ,building
5. prepaid expenses
6. bills receivable

(B)liability side:
1. capital
2. bank over draft
3. creditor
4. outstanding expenses
5. bills payable

  1. 19. Can you please explain the difference between payment and charge reversals?

Type of payment: Cash, debit card, credit card, gift certificate, money order, personal check, bill me later, PayPal account, and PayPal alternative.

  1. 20. Define Asset accounting?

Deep is the decreasing the value of assets.

  1. 21. Why we cannot depreciate stock?

Depreciation is charged only on fixed assets because we are allocating the total expense of fixed asset for many years.
Stock is a current asset generally used to sell within a year only.
More importantly we show consumption of stock in Trading A/c through Cost of goods sold.
(i.e.,Opening stock + Purchase – Closing Stock)

That means Stock consumption expenses is already booked in Trading A/c hence we do not show again as expense by treating as deprecation.

  1. 22. Tell me how FIRC accounting is done?

When any foreign exchange (currency) comes to your bank account Bank wants confirmation from your side as per RBI rule i.e.-what is the purpose of this remittance means how and why got this money? Then You have to submit the purpose/amount/ bank account etc. to the bank.This is the procedure of giving disposal instruciton of remittance after this document you can ask to get FIRC.

  1. 23. Define appropriation?

Money set aside (as by a legislature) for a specific purpose generally for aquisitions by a firm.

  1. 24. Difference between forecasting & Budget?

Budget is the cost involved for the project right from start all tha cost regarding materials, men power, place, time to complete the the project with in a time frame and the cost involved it.
In budgeting, a detail study will be done from laying a plan, study the number of methods to do the task, the technology to be use, the alternative way or process, manpower required and their skill level and the time duration from raw material to finished goods convertion and the work in progress must be taken to account and life time of project and return from the project are calculated in black and white based on which decision are taken whether to do the project are not.

  1. 25. Can you please explain the difference between forecasting and Budget?

Forecosting is done based on the past experiences of the persons in the particular field and predict the cost involved for the particular action or for the data collected about the a project in the past it is done on based of past data.

  1. 26. Define committed cost?

Committed cost is a fixed cost which results from the decisions of the management in the prior period and is not subject to the management control in the present on a short run basis. They arise from the possession of production facilities, equipment, an organization setup, etc.
Some examples of committed costs are:
plant and equipment depreciation, taxes, insurance premium and rent charges.

  1. 27. How will you account B company investment in C Company in consolidated accounts?

A parent company, acquired 80% of B Company, which in turn has already acquired 40% of C Company. How will your account profit of C company in consolidated accounts? How will your account B company investment in C Company in consolidated accounts?

  1. 28. What are different kind of MIS reports?

Management Information System (MIS) reports are prepared for the management to take key managerial decisions. It may vary from company to company and industry to industry.

  1. 29. Define accounting report?

Periodic statements showing financial position of a firm/company for a specific period, resulted from its business transactions and operations.

  1. 30. Define gross profit margin?

Gross Profit Margin = Gross Profit/Sales or Revenue
Gross Profit = Sales or Revenue – Cost of Goods Sold

  1. 31. What are the columns of a journal?

Journal has following five columns:
★ Date
★ Particulars
★ Ledger
★ Amount Debited
★ Amount Credited

  1. 32. Define Journalizing?

Journalizing is the process of recoding business transactions in the Journal in chronological order, as and when the transactions take place. Journal is also known as Book of Original Entry or the Book of Prime Entry.

  1. 33. Define Compound Journal entry?

In day to day business, various similar transactions take place on the same day and every account is either debited or credited. Thus instead of passing different entries, a compound entry can be passed, which involves more than one debit or more than one credit or both. This makes the journal less bulky and avoids duplication.

  1. 34. Define Entries for which there is no special journal?

Entries for which there is no special journal when the transactions cannot be recorded in the above sub journals then the same are entered in the journal proper.

  1. 35. What are Rectification Entries?

Rectification Entries are passed to rectify the error detected the books through an entry in journal proper.

  1. 36. What are Entries for rare transactions?

Entries for rare transactions Journal proper is used for rare transactions.

  1. 37. What are Opening Entries?

Opening Entries are the entries which are made at the starting of the financial year.

  1. 38. What are Transfer Entries?

Transfer Entries are the entries which are passed in order to transfer one account to another account.

  1. 39. What are Adjustment Entries?

Adjustment Entries are passed at the end of an accounting period in order to modify the accounts.

  1. 40. What are closing entries?

Closing Entries at the close of the accounting period balances from the various accounts are transferred in order to balance the books of accounts. Thus, this process of transferring balances of the trading and profit and loss account at the end of year is called closing the books and entries passed at that time are called closing entries.

  1. 41. What are the type of transactions entered in Journal proper?

The Journal proper is used to record following transactions:
★ Opening Entries
★ Closing Entries
★ Transfer Entries
★ Adjustment Entries
★ Rectification Entries
★ Entries for rare transactions
★ Entries for which there is no special journal
Examples of such transactions are Distribution of goods as free sample, Goods destroyed by fire, etc

  1. 42. Described Purchase day book?

Purchase Day book (Purchase Register) is the book of original entry in which all the transactions relating to only credit purchase are recorded. Cash purchases do not find place in purchase day book as they are recorded in Cash book. At the end of every month purchase day book is totalled. The total amount show the total goods purchased on credit. The total of purchase book is debited to the purchase account and the accounts of the suppliers of goods are credited with the amount standing against their names. Ruling of purchase day book is different from a journal. There are five columns in a purchase day book: first column records Date, second column records name of the supplier, quantity supplied, Rate at which quantity supplied, description, etc. , third column records Invoice number, fourth column records Ledger Folio, fifth column records total amount to the supplier.

  1. 43. What does an accurate Trial Balance suggest?

An accurate Trial Balance is an evidence that all the transactions are recorded and posted in the General Ledger account as per the accounting principles. It also ensures arithmetical accuracy of the process of ledger posting.

  1. 44. Described control ledgers?

In a business, sometimes it is not feasible to carry accounts of all the suppliers and customers in the main ledger. In such cases apart from General or main ledger, the control ledgers are maintained. Control ledgers records the individual accounts. In the end of the period, balance shown in the main ledger has to tally with the balance in the individual ledger accounts maintained in the control ledger.

  1. 45. List the reasons which cause pass book of the bank and your bank book not tally?

★ Cheques deposited into the bank but not yet collected
★ Cheques issued but not yet presented for payment
★ Bank charges
★ Amount collected by bank on standing instructions of the concern.
★ Amount paid by the bank on standing instructions of the concern.
★ Interest debited by the bank
★ Interest credited by the bank
★ Direct payment by customers into the bank account
★ Dishonour of cheques
★ Clerical errors

  1. 46. Define Trial Balance?

Trial Balance is a summary of all the balances of various ledger accounts and Cash/Book accounts of an organisation at any given date. For the preparation of Trial Balance the entire Ledger accounts and Cash book/Bank book are required to be balanced to get the closing balance. Assets and Expenses accounts having debit balance are posted on debit side whereas Income and Liability accounts having credit balance are posted on credit side of the Trial Balance.

  1. 47. Which steps you take to locate errors in case Trial Balance disagrees?

In case Trial Balance disagrees, following steps should be taken to locate the errors:
★ Totaling of all the subsidiary books and trial balance should be checked carefully.
★ Opening balances of all the accounts are properly brought down in the current year’s books of account.
★ Ledger accounts have been properly balanced and the balances of ledger accounts have been correctly shown in the trial balance.
★ To locate some errors the difference in the trial balance in halved.
★ Another way is dividing the difference in the trial balance by 9.
★ If the difference gets divisible without leaving any reminder that indicates the transposition of the amounts.
★ To locate certain other errors, current year trial balance can be compared with the trial balance of the previous year.

  1. 48. Which is important to effective market analysis?

Generally speaking, it is important to do research on a regular basis in relation to every individual client or category of clients. Effective research assesses current situations to project future developments and opportunities for the company. It studies competitors and proposes improvements.

  1. 49. What are 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.

  1. 50. What you do to increase revenues?

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.

  1. 51. Tell me how would you define team work and communication skills in 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.

  1. 52. 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.

By bpci