Basic Commerce / Accounting Question in Interview.

If you are in an Interview for an MBA or for an Job and Incidentally you are from an Commerce background stream or not, you got to know about few basic things about it in business field.  Here there are few questions based on Commerce/ Accounting you may face in the Interview.


Basic question on Accounts.

What is the Personal Income Tax rate?
What are Direct and Indirect Taxes? Give examples.
Why does a Balance Sheet balance?
Is loss an asset or a liability?
What are LIFO & FIFO? What are they used for?
What are Quick Assets?
What is Amortisation?
What is Depreciation? What are the different methods of Depreciation? Which method is better and why?
Do you know what N.P.V. discounting is?
What are Derivatives?
What are Options and Futures?
What is Operating Ratio?
Does dividend reduce profits?
What is Trial Balance?
Why is Trial Balance used?
If ledger postings are computerized, do you require a Trial Balance?
What is the highest rate of Depreciation under Income Tax and for what items?
Does depreciation reduce profit?
What is Current Ratio?
What is Working Capital?
What is the ideal Current Ratio? Why?
What is Negative Working Capital and explain its implications?
What is Discretionary Expense?
What is Capital and Revenue Expenditure?
When can Revenue Expenditure be capitalized?
Is there any ratio of the expense incurred and cost of asset to capitalize the expense?
What are the advantages of Capitalization?
If you are an investor, what will you look for before you invest in a company?
What would happen if a company pays a lower dividend?
Can you draw up a Balance Sheet?
What is Fiscal Deficit?
What is Budget Deficit?
What is Mean / Median?
Where does Goodwill appear in a Balance Sheet? Why?
Explain Going Concern concept.
Explain various costs in cost sheet.
What is Contra-entry?
What is Country of Origin?
Can the captain of the vessel dump the goods in the middle of the sea?
What is Sight Draft?
What is Capital Account Convertibility?
What is Corporate Tax? Is it a direct or indirect tax?
What is the elasticity of demand and supply in corporate taxation?
What are the differences between companies falling under small and medium sector?
What is the difference between Excise Duty and Customs Duty?
Can depreciation be on fixed assets only?
As depreciation is to fixed assets, what is the same analogous to debtors?
How much depreciation would you charge on a building - 5% or 10%? Why?
Why is it that one has 30% depreciation on computers and less on buildings?
What is Single Entry? Why is it considered inferior to Double Entry?
What is Bank Reconciliation Statement?

Let me know if you need the answer even for this questions?


Follow the Link for the Answers:
1) Basic Accounts GD PI/Interview Answers
2) Basic Accounts GD PI/Interview Answers - 1