Top 10 Frequently Asked Job Interview Questions to Chartered Accountants

The interview might start with basic HR questions if there is no HR round. The interviewer might ask you about yourself and description and job responsibilities of your last job. Keeping the most common HR interview questions aside let’s focus on the subject based questions that are frequently asked to any Chartered Accountant in a job interview.

What is ‘previous year’? Define the term ‘assessment year’.

It is a common interview question that is asked to lighten the mood. The answer is known to any commerce aspirant.

The term ‘previous year’ stands for the immediate financial year before the ongoing one of the assessment year. ‘Assessment year’ on the other hand means the contemporary financial year that is from 1st April 2016 to 31st March 2017. Hence the previous year will be 1st April 2015 to 31st March 2016.

What is the meaning of the term ‘person’ in Accounting?

The Section 2(31) refers to the term ‘person’ as:

  • A company
  • An person or an individual
  • An undivided Hindu family
  • A particular firm
  • An association of individuals
  • An authority that works locally
  • Any artificial entity or person that is not covered under the above mentioned sub-clauses.

How the Total Income of Assessee is calculated?

The total income of the assessee is calculated as follows.

  • Incomes based on the salaries
  • Income based on the residential property
  • Profits earned from business and (or) profession
  • Income earned from capital gains
  • Income based on other valid sources

How will you check the accounting work you are given before submission?

This is an easy question with tricky answers that will show your proper understanding of the job responsibilities.

All you have to do is to remember the requirements of the position. You have to answer how you will analyze the provided set of data, interpret and assess to find the right information and check the performance. The main essence is in the details. mention how diligent and patient you have to be while performing the last check before submission. End the answer with an example.

Cite an example of accounting reports in your curriculum.

This is one of the best opportunities to describe your determination and dedication towards the job. The answer must demonstrate your experience in handling delicate work and compliance to the rules and regulations in the subject. You have to mention the respective procedures and practices followed by the company. You will mention you capability to handle pressure and meeting the deadlines with precision too.

What do you mean by ‘Resident and Ordinarily Resident’ (ROR)?

An individual or a person is considered to be ROR if he or she satisfies any of the following basic criteria and the additional ones mentioned.

Basic criteria

  • The individual in staying in India for a period more than 182 days in total in the previous year.
  • He or she is in India for 60+ days in the previous year and in total 365 days in the preceding 4 previous years.

Additional conditions

  • He or she has been the resident of India for 2 out of 10 accounted previous years just before the relevant accounted previous years.
  • He or she has been staying in India for 730+ days during immediate 7 previous years to the relevant accounted previous year.

Which incomes in India are considered for periodic increase even though they have increased outside India?

  • Income that is related to a business connection that originates in India
  • Income that is originated from a tangible property (movable or immovable) in India.
  • Income due to transfer capital asset from India
  • Any salary that is earned in the soil of India even though it is paid or transferred outside India
  • Government salary to a citizen of India for services done outside in foreign soil.

What are the basic items that are included in the structure of salary?

The main item is wage

  • Pension
  • Gratuity
  • Commission based fee or profit based percentage.
  • Advance of salary
  • Payment for the leaves that are not taken by the employee.

What do you mean by gratuity?

The term ‘Gratuity’ refers to the amount payable by the owner of the company to the employee due to his or her long term service period in the company.

The structure of the gratuity plan can be executed in two ways.

  • It can be paid at the end during the retirement of the employee
  • After the employee’s sudden demise then the amount will be paid to the legal heirs.

What is ‘Pension’?

The periodic payment paid by the employer to the employee after the retirement or discontinuation of the job in good terms. It will be taxed as salary.

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