What are some basic accounting questions and answers?


Quick Answer

Typical topics for basic accounting questions include the items on a balance sheet and common abbreviations. Additional basic accounting questions may ask about accounting software, such as CGram Software, Financial Force and Microsoft Accounting Professional.

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Full Answer

A common accounting question asks what a balance sheet shows. The answer is that a balance sheet lists a company's assets and liabilities at a given point. A balance sheet details both what a company owns and what the company owes to others. Financial professionals use balance sheets to determine eligibility for loans, investments and other opportunities and financial transactions.

Another common accounting question asks a person to explain what TDS abbreviates. The answer is "tax deducted at the source," and this term signifies the collection of tax as a company earns income. To the tax payer, TDS distributes tax payments and provides an easy way to make payments.

Many accountants also need some familiarity with accounting software to answer questions about the topic. Accountants should be able to discuss what types of software accountants typically use. Accounting professionals use simple spreadsheet programs such as Excel to perform a number of accounting tasks. In addition, CGram software provides accountants sales and purchase ledger tracking software, forecasting, fixed assets and multi-currency accounting options.

Another common accounting question asks name the abbreviations for certain accounting terms. An accountant should know that the abbreviation for debit is "DR" and that accountants abbreviate credit with "CR."

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