Accounting Interview Questions and Answers

PPE stands for Property, plant, and equipment. Property, plant, and equipment (PP&E) are basically the long-term fixed assets which are very important to the business operations and not easily liquidates. Property, plant, and equipment are the physical assets, and they can also be touched. The entire value of PP&E can range from very very low to exceedingly high as compared to the total assets.

• High Visibility Clothing
• Hand Protection
• Eye Protection
• Foot Protection

In the Accounting industry, there are four types of account adjustments.

• accrued revenues
• accrued expenses
• deferred revenues
• deferred expenses

GAAP stands for Generally Accepted Accounting Principles. It refers to the typical set of accepted accounting principles, procedures, and standard which organizations and their accountants should follow when their financial statements are compiled. GAAP is actually a combination of authoritative standards which is set by the policy boards and the typically accepted ways of recording and even reporting accounting information.

The four principles of GAAP are:- Cost, Matching, Disclosure, and Revenue.

The “cost” principle mention the notion that all the values which are listed and reported are the costs to acquire the asset and not to acquire the fair market value,

The “matching” principle states that the expenditures in the financial statement need to be matched with the revenue. Accountants have to include the value of the spending in the financial statements when the work product is sold, & not necessarily when the work or an invoice is issued.

The “disclosure” principle states that information pertinent to form a reasonable judgment on the company's finances have to be included, so long as the amount to get that information is understandable.

The “revenue” principle affirms that all the revenue need to be reported when is it realized and earned and not necessarily when the real cash is received. This is also called accrual accounting.