1. Different types of accounts & Golden rules.

A. Real account.
Real accounts are accounts that represent tangible assets, such as property, plant & equipment, and
intangible assets like goodwill. They also include liability.
• Golden Rule.
Debit what comes in and credit goes out. In case of loan “the loan ac will be debited and the
bank (cash) ac will be credited”

B. Personal account.
Personal accounts are accounts that represent individuals, organizations, or entities with whom a
business has financial transactions.
• Golden Rule.
Debit the receiver and credit the giver. In case of Salary “Employee’s salary ac will be debited
and the cash or bank ac will be credited”

C. Nominal account.
Nominal accounts are temporary accounts, recording and keeping track of your profits, revenues,
expenses, losses and other key debit and credit items of the financials.
• Golden Rule.
Debit all expenses and losses and credit all income and gains. In case of Sales “The sales/product
will be debit and the cash or bank will be credited”

2. 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.
3. What is Equity Share?
Equity shares are long-term financing sources for any company. These shares are issued to the
general public and are non-redeemable in nature. Investors in such shares hold the right to vote,
share profits and claim assets of a company.

4. What is Preference share?

Preference shares, more commonly referred to as preferred stock, are shares of a company’s stock
with dividends that are paid out to shareholders before common stock dividends are issued. If the
company enters bankruptcy, preferred stockholders are entitled to be paid from company assets
before common stockholders.

5. What is Debenture?
A debenture is a type of debt instrument that’s not backed by collateral. Debentures are long term
loans that are backed by the issuer’s reputation and creditworthiness. Debentures are often issued
by Govt and corporations to raise funds.

6. What is Primary Market?

A primary market is a market where new securities are created and sold to investors for the first
time. Companies or Govt issue new securities, such as stock, primary bonds, and debentures in the
primary market to raise capital.

7. What is Secondary Market?

A Secondary market is a market where securities are traded after they have been offered to the
public in the primary market.
 8. What is IPO (Initial Public Offer)?
It’s the process by which a private company makes its shares available to the public for the first
time.

9. What is Demat Account?

A Demat ac is a digital way to store and manage securities. It can hold stock, bonds, exchange-traded
funds and mutual funds. A demat account is provided by a depository and is different from a bank
account, which is usually used to store funds.

10. What is Stock & Shares?

• Stocks
A generic term that can refer to a portion of ownership in a company, a collection of investor holdings,
or a portfolio. Stocks can also refer to equity securities, which represent ownership of a portion of a
corporation.
• Shares
A specific term that can refer to ownership of a particular company or a type of financial instrument. A
unit of stock is called a share, and each share entitles the owner to a portion of the corporation's assets
and profits

11. What are the general requirements of GAAP?

There are 10 generally accepted accounting principles (GAAP) that accountants should know. You
don’t need to recite them all verbatim during your interview. However, you should know what they
mean and why they exist.
GAAP exists so that accountants keep accurate, consistent records. It sets a standard for honesty,
fairness, and factual financial information. A candidate who knows this answer at least has a
foundational knowledge of public accounting practices.
If you want to impress the hiring manager, reference these generally accepted principles:
1. Principle of Regularity
2. Principle of Consistency
3. Principle of Sincerity
4. Principle of Permanence of Methods
5. Principle of Non-Compensation
6. Principle of Prudence
7. Principle of Continuity
8. Principle of Periodicity
9. Principle of Materiality
10. Principle of Utmost Good Faith
12. Are private companies required to follow GAAP?
Only publicly traded companies must follow GAAP. That doesn’t mean private companies and small
businesses can’t or shouldn’t adhere to these rules — they just don’t have to.
 GAAP can provide a clear and consistent standard for private companies. Even if they do not need
to follow it, it can still benefit them. Some of the more specific rules don’t apply. Nevertheless,
lenders often look at private companies that use GAAP more favorably.
A candidate who can answer this question knows the difference between public and private
companies. It shows accounting knowledge beyond the numbers and attention to regulations.
13. What is working capital?
In simple terms, working capital is a company’s calculated assets with current liabilities subtracted.
It represents a business’s operating liquidity and is considered part of operating capital.
In other words, working capital is the amount of money a business has available to use at a given
time. A good accountant should keep track of this amount and show companies how much money
they have in assets at their disposal.
14. Fixed Income

Fixed income refers to investments, like bonds, where the borrower (government, corporation, etc.)
makes fixed periodic payments (interest) to the investor, along with the eventual repayment of the
principal amount at maturity.

• Definition:
Fixed income securities are debt instruments where the issuer (borrower) is obligated to
make payments of a fixed amount on a fixed schedule.

• Examples:
Common examples include government bonds (like Treasury bonds), corporate bonds,
municipal bonds, and certificates of deposit (CDs).

• How it works:

When you invest in a fixed-income security, you are essentially lending money to the issuer,
and in return, you receive regular interest payments (also called coupons) and the principal
amount back at the end of the term.

• Contrast with Equities:

Unlike equities (stocks), which represent ownership in a company and offer potential for
capital appreciation and dividends, fixed income provides a more predictable stream of
income and is generally considered lower risk.

• Key Features:
• Fixed Payments: The interest payments are typically fixed for the duration of the
investment, providing a predictable income stream.
• Maturity Date: The investment has a specific maturity date when the principal
amount is repaid.
• Credit Risk: There's a risk that the issuer may default and not be able to make
payments, which is known as credit risk.
• Advantages:
• Stable Income: Fixed income investments offer a stable and predictable income
stream.
 • Lower Volatility: Compared to equities, fixed income investments tend to be less
volatile, meaning their prices fluctuate less.
• Capital Preservation: Fixed income investments can help preserve capital, especially
during periods of economic uncertainty.
• Disadvantages:
• Lower Returns: Fixed income investments typically offer lower returns compared to
equities.
• Interest Rate Risk: When interest rates rise, the value of existing fixed-income
securities may decline.
• Inflation Risk: The real value of fixed-income payments can erode over time if
inflation rises.

15. What is trade?

Trade is the process of buying and selling any financial instrument.

The lifecycle of a trade is the fundamental activity of investment banks, hedge funds, pension
funds, and many other financial companies. There is no better way to understand the workings
of a financial institution than to follow the progress of a trade through all of its various stages
and all the activities performed upon it. In the financial market, "trade" means to buy and/or
sell securities/financial products.

To explain it further, a trade is the conversion of an order placed on the exchange which results
in pay-in and pay-out of funds and securities. The trade ends with the settlement of the order
placed.

All the steps involved in a trade, from the point of order receipt and trade execution through to
settlement of the trade, are commonly referred to as the 'trade lifecycle'.

Trading has evolved from a humble apple grower wanting a stable price for his produce come
harvest time, to a complex and exciting industry comprising a significant share of the global
economy, and more recently, taking a hand in saving it.

It is the fundamental activity of investment banks, hedge funds, pension funds, and many other
financial companies. There is no better way to understand the workings of a financial institution
than to follow the progress of a trade through all of its various stages and all the activities
performed upon it.

All the steps involved in a trade, from the point of pre-negotiations and trade execution through
to settlement of the trade, are commonly referred to as the trade life cycle. The Trade life cycle
consists of a series of logical stages and steps.

1. Sale
• This is a process of client acquisition in which HNIs or Institutional clients are introduced to
various investment products or vehicles.
• These vehicles or products are available with an Investment Manager or Bank by whom the
client's investments are managed.
• The investments are collectively called Mutual or Hedge funds.
 2. Trade Initiation and Execution
• This is the process of placing an order in the market.
• Trade Initiation and Execution can be done both in Order and Quote-driven markets.
• This depends on the choice of a marketplace and the external platform.
• Once the order is placed and it gets matched, the trade is said to be executed.

3. Trade Capture
• Trades are then booked internally in an FO system for it to flow down to the operating
systems.
• It is booked in a Risk Management System (RMS)

4. Trade Validation and Enrichment

The reference data team set up the static and dynamic details which help middle office teams
to validate the trade, before releasing instructions into the market.

5. Trade Confirmation
• This is an extremely critical step for the trade settlement.
• Trade details and SSIs are agreed with the counterparty at bachelor schreiben lassen least a
day before the settlement date.
• Confirmation via depositories like Euro clear/DTCC

6. Trade Settlement
This is the process of simultaneous exchange of cash versus securities for a security trade or cash
versus cash for a Derivatives trade.

7. Reconciliation
Reconciliation involves matching ledgers against statements to ensure correct accounting of all
trade books.
The beauty of Investment Banking Operations, as taught in any school of investment banking, is
the trade life cycle and its mechanisms akademisches ghostwriting. It has always fascinated me
to think how innovative and creative a financial institution can work to get a job done. Whilst
working through the life cycle, one must keep in mind the reason for its existence, the end result
and the factors that surround it.

16. What is the biggest challenge for the accounting profession right now?

You don’t need a long-winded report to answer this question, but you should know that it will vary.
Different states and countries have different regulations and make new changes each year.

In 2020, the accounting profession has encountered significant challenges that include:

• The Tax Cuts and Jobs Act

• Automation and artificial intelligence
• Diversification
• Cybersecurity
 When you describe each challenge, it can help to offer brief solutions. By doing so, you prove that
you’re a problem-solver who doesn’t let a challenge discourage you.

For example, to meet the challenges associated with the Tax Cuts and Jobs Act, accountants can
update their software and understand how businesses can use the new regulations to their
advantage. Automation allows companies to automate repeated processes and help accountants
become more efficient rather than worrying about a machine replacing their job.

If you interview a year from now, the challenges will likely have evolved. Keep in mind what issues
you have faced in your work that you can bring to the table and talk about overcoming.

17. What enterprise resource planning (ERP) systems have you used?

Any accountant should know Excel as a basic ERP, but if you use others, mention them. Microsoft
Dynamics GP, Hyperion, and Oracle Enterprise Manager all come up regularly in the accounting
industry.

If you’ve previously worked for a large corporation, be prepared to describe your work with ERPs. If
you haven’t, share your knowledge of any similar software you have used.

Knowing this information helps employers evaluate candidates at all levels to gauge their
experience. Sharing this experience for an entry-level position can even show potential for
expanding your job scope and moving up within the company.

18. Do you stay current on regulation changes and accounting trends?

Any accountant should keep up with changing regulations. Tell your employer how you prefer to
keep up with accounting news.

Do you listen to podcasts? Do you subscribe to any accounting publications? Have you attended any
accounting conferences?

No matter how you do it, your answer should demonstrate a passion for or interest in this
information. You need it in the workplace, and knowing you keep up with industry knowledge on
your own can build trust with your employer.

19. How do you stay accurate and reduce human error with your accounting?

Describe the tools and software you use in your accounting process. Show that you understand the
importance of accuracy in accounting.

You can talk about how you have previously caught or prevented errors in your work (or someone
else’s). If you manage an accounting team, maybe you check to ensure that no one gets
overwhelmed. You might delegate appropriately to minimize rushing and the errors that come with
it.

Perhaps you’ve implemented an automated process to reduce the risk of employee mistakes. When
employees have time to focus on other aspects of their job, these automated processes create both
efficiency and accuracy.
 You might review employees’ work, conduct regular training, or offer certifications in the workplace.
These measures can prevent common problems like:

• Omission errors
• Commission errors
• Compensating errors

Showing your attention to errors tells your potential employer that you work to fix problems when
they arise. It also shows how you respond to mistakes in the workplace.

20. What is the difference between accounts payable and accounts receivable?

The difference between these two departments lies in assets and liabilities. Accounts payable comes
down to what you owe. You bought goods on credit — for example, with a company credit card —
so you must pay it back to the vendor.

Accounts receivable simply flips those two positions. You collect money from someone who bought
something from your company. This department ensures that the buyer pays what they owe.

21. How have you helped a previous employer save money?

Consider a time when you have offered an idea to management or in a company meeting that
resulted in:

• Better use of the company budget

• Reduced expenses
• Better money management
• Your company taking advantage of an incentive, like a tax break

If you can, talk about data here. You want to explain in-depth how much money you saved, where
you saved it, which departments benefitted, and how it changed the company’s accounting
processes for the better. Your answer will depend on your experience, but try to think of something
that improved your company’s financial standing.

22. How do you organize your usual workday? What about one where you have a tight deadline?

Time management is essential for accountants. An employer will want to know how you handle busy
seasons and day-to-day operations.

Showing how you prioritize says that you have skills beyond working with numbers. You can talk
about how you set up your day, prepare your work, stay organized, and work under the pressure of
deadlines. Companies benefit from accountants who know how to manage their time, so
showcasing this skill can make you stand out.

23. What is most important to you when searching for accounting tools and software?

Interviewers often ask which aspect of an accounting tool matters most. For example, they might
ask you to tell them whether price or complex accounting features are more important when
choosing accounting software.
 Consider the value of both, as one doesn’t determine the other. Talk about specific accounting
functions and how advancement ensures that you can get the right features without breaking the
bank.

You can also mention your ability to research here. Let the interviewer know that you can find
software that suits the company’s needs. Mention if you’ve done that for your current or past
employer.

24. What other skills do you bring to the table with your accounting knowledge?

Employers value soft skills as much as technical knowledge. These skills can get you far, even if you
don’t have all of the qualifications listed in the job description.

Describe your personal skills, including:

• Good communication
• Active listening
• Empathy
• Strong worth ethic
• Problem-solving
• Collaboration and teamwork
• Leadership
• Adaptability

Each of these skills can work to your — and the hiring company’s — advantage. You can even
describe how those skills have positively affected your work in the past. To find out more about how
these qualities can improve your chances of getting hired, check out this course on developing your
soft skills.

25. How would you explain an accounting problem or process to someone without accounting
knowledge?

Explaining complex accounting information takes skill beyond knowing the numbers. Using an
example if you’ve done this before helps. Talk about how you would present the information to
someone else.

Describe the tools and language you might use and how you would help them understand
something they’ve never seen before. Would you use visual content? A PowerPoint presentation?
Or do you use empathy and close listening to explain the concept in a way the other person can
comprehend on their terms?

26. Do you have your CPA? Any other certifications?

Having your Certified Public Accountant (CPA) license will give you an edge over the competition. It
shows that you have worked hard and are committed to the accounting profession. If you don’t
have your CPA yet, let your employer know if you’re working toward it.

There are other ways to stand out. Highlight any additional certifications you have that might be
relevant to the job description, like GAAP or IFRS certifications. You can also talk about accounting
courses you’ve taken that have helped you further your knowledge and ability as an accountant.
27. What do you consider the most important qualities in an accountant?

This answer has some room for variation, but there are a few things every accountant needs,
including:

1. An affinity for numbers, even if they’re not a mathematical genius

2. Analytical ability
3. Good communication

Accounting roles need more than technical ability. You can talk about how the following
characteristics and skills make an accountant the best they can be:

• Good customer service

• Ability to explain complex topics
• Attention to detail
• Technological skill
• Understanding of good business practices and spending habits

28. How can you tell if a company is in trouble even if they have positive cash flows?

A company’s financial statements will show you whether the positive cash flow leads to positive net
income or if the company is in trouble. Negative net income means that the company’s liquid assets
have not increased, regardless of their cash flow.

A company can have a negative net income if they borrow money rather than gaining revenue from
the products or services they provide. An accountant should recognize when this problem occurs
rather than taking each journal entry at face value.

Our financial statements courses can help you understand how to interpret a company’s financial
standing and improve it.

29. Do you have experience with developing business metrics?

Experience with managing and assessing business processes is essential to some accounting roles
as you move up the company ladder. Understanding business metrics shows how deep your
knowledge goes, especially if you’re applying as a financial analyst.

If a candidate has these qualifications, it can help interviewers assess whether they can expand your
role beyond accounting fundamentals. It also makes you stand out as more than another entry-level
candidate.

30. What is PP&E, and why is it important?

Property, plant, and equipment (PP&E) shows a company’s physical long-term assets. It can include
office equipment, buildings, machinery, and other tangible items.
 Companies must list PP&E on their financial statements. It counts as a primary capital asset that
generates revenue, profitability, and cash flow. These assets can also impact a company’s financial
position.

Investors want to know how a company invests its capital, and PP&E tells them. How a company
spends its money tells an investor whether the company is likely to become — or remain —
successful. When a company makes poor spending choices regarding PP&E, it can cause problems
in the form of financial standing.

31. Can you give an example of a challenge you have faced in the workplace or with a team member
and how you resolved it?

This is an excellent opportunity to show your interviewer your problem-solving and leadership
capabilities. Your answer tells them how you work under pressure and fix mistakes — yours or
someone else’s.

Even if your greatest challenge has nothing to do with accounting, you can use other valuable
examples here. Show interpersonal aptitude and other soft skills alongside your technical
knowledge. Your answer demonstrates how you work with others and whether you take
responsibility in the workplace.

32. What is the difference between public and private accounting?

You’ll find many differences between private and public accounting. While you don’t need to go
in-depth, you can offer some examples.

Public accountants abide by GAAP regulations. Following those rules may give them a better
understanding of financial statements and standards. They also often have a CPA. That’s not to say
private accountants never do, but you’ll find this certification more often in public practices.

Private accountants usually operate with a more focused lens. A private accountant might stick to a
single industry, while a public accountant has broader experience.

When it comes down to it, public and private accountants’ differences come down to standards and
specific knowledge. You may also find that their desired career paths diverge from one another.