Accounting Interview Questions

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Please generate professional answers, newly written.

You are in an interview for an accounting position, and you have been asked the following questions. Respond to each of these questions in a professional manner.

  1. Define and explain the components of the relationship with the income statement, retained earnings, balance sheet, and cash flow statement according to GAAP. In your response post, explain the accounting equation and identify which financial statement reports the accounting equation.
  1. Describe basic business activities that financial accounting seeks to measure and communicate to external parties. Who are these external parties?
  1. In addition to the financial statement elements arrayed in the basic financial statements, discuss some other ways to disclose financial information to external users.
  1. What are some examples of closing entries and why are they necessary?

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