Are you worried about the question of your accounting job interview? Don’t think which question is going to be asked on the Interview Board? Don’t worry, this article is going to solve your accounting interview problem.
Our top 50 accounting job interview questions and answers will help you to ease all of your accounting job interview tension.
These top 50 accounting interview questions and answers not only help you do well in your job interview but also help you do well in any type of competitive accounting interview at school, college, university, etc.
Until beginning a top 50 accounting job interview questions and answers. First, you can read our top 10 common job interview questions and answers. Then continue reading these articles.
Top 50 Accounting Job Interview Questions and Answers
Question No-1: How many tabs or business transitions are there in accounting?
Answer: there are two types of business transitions in accounting revenue and capital.
Question No-2: Explained real and nominal accounts with examples.
Answer: A real account is an account of assets and liabilities. examples: land accounts, building accounts, etc. A nominal account is an account of income and expenses example salary account, wages account, etc.
Question No-3: Which accounting platform have you worked on which one do you prefer the most?
Answer: Describe them about the accounting platform. Such as QuickBooks, Microsoft Dynamics, GP, SAP, Oracle, etc. that you have worked with and which one you like the most.
Question No-4: What is double-entry bookkeeping what are the rules associated with it?
Answer: Double-entry bookkeeping is an accounting principle. Where every debit has a cross bonding credit thus the total Debit is always equal to the total credit. When one account is debited in this system, another account is credited at the same time.
Question No-5: What is working capital?
Answer: Working capital = Current Assets-Current Liabilities used in day-to-day trading.
Question No-6: How do you maintain accounting accuracy?
Answer: Maintaining the accuracy of the accounting of an organization is an important activity. Because it can lead to an enormous loss of tools and resources to help reduce mistakes if an error occurs.
Question No-7: What is TDS? Where are you showing TDS on the balance sheet?
Answer: TDS (tax deducted at source) is a concept at collecting tax for every source of income. This shows in the asset portion of the balance sheet right after the main current asset.
Question No-8: What is the difference between accounts payable in accounts receivable?
Answer: Now let’s suppose for a while in case you were in the field of accounts receivable. Then your answer would look like accounts receivable the amount a company has the right to collect. Because it sold goods or services on credit to the customer. Accounts receivables are assets.
The coefficient part two is what is the difference between accounts receivable and accounts payable.
Now let’s suppose for a while in case you are in the field of accounts payable. Then your answer what will look like The amount a company owes. Because it has bought goods or services on credit from the manufacturer or suppliers. Accounts payable is liabilities.
Question No-9: What is the difference between a trial balance and a balance sheet?
Answer: Trial balance is a list of all balances in a ledger account. It helps to check the mathematical accuracy in a recording and posting a balance sheet.
On the other hand, a balance sheet is a statement that shows the assets, liabilities, and equity of a company. And it identifies the financial position on a particular date.
Question No-10: Is it possible for a company to show positive cash flows and still be in great trouble?
Answer: Yes, if it shows an unsustainable improvement in working capital, and involves a lack of revenue going forward in the pipeline.
Question No-11: What are the common errors in accounting?
Answer: The common errors in accounting are an error of omission, an error of commission, errors of principle, and compensating error.
Question No-12: What is the difference between inactive and dormant accounts?
Answer: Inactive accounts are inactive and will not be used in the future. And dormant accounts are not currently working but may be used in the future.
Question No-13: Are you familiar with the accounting standards and how many accounting standards are there?
Answer: Yes, I am familiar with accounting standards. There are currently 41 accounting standards. Accounting Standards Board usually issues the accounting standard.
Question No-14: Why do you think accounting standards are mandatory?
Answer: Accounting Standards play an important role in preparing a good and accurate financial report. And it ensures reliability and relevance in financial reports.
Question-15: Have you ever helped your company to save money or use their available financial resources effectively?
Answer: Explain if you have purple’s idea which has affected the company’s finance positively. Tell how you have optimized the process and how you came to such a decision through historical data reviewing system.
You can also read why do you choose your career as an Accountant?
Question-16: If our organization has three bank accounts for processing payments what is the minimum number of Ledger’s appears?
Answer: Three Ledger’s for each account for proper accounting a reconciliation process.
Question-17: What are some of the ways to estimate back dabs?
Answer: Some of the popular ways of estimating bad debts are the percentage of outstanding accounts, aging analyzes, and the percentage of credit sales.
Question-18: What is a deferred tax liability?
Answer: Deferred Tax Liability signifies that a company may pay more tax in the future due to current transitions.
Question-19: What is a deferred tax asset and how is the value created?
Answer: A Deferred Tax Asset is a company’s balance sheet item and is used to show that a corporation has overpaid taxes and some sort of tax relief is due.
Now well it is created by taking the difference between the book income and the taxable income.
Question No-20: What is the equation of asset test ratio in accounting?
Answer: The equation of asset tests ratio in accounting is equal to current assets inventory or current liabilities.
Question No-21: What are the popular accounting application?
Answer: I am familiar with accounting applications like Seagram software, financial force, accounting professional, Microsoft Dynamics AX, and Microsoft small business financials.
Question No-22: Which accounting application you’d like the most and why?
Answer: I find SAP to be the best. Because they offer reliable and fast processing of efficient accounting transition by saving time and increasing proficiency.
Question No-23: Tell me something about GST?
Answer: GST is an acronym for goods or services tax. And it is an indirect tax other than income tax paid on the value of the service or the product sold to the consumer. It will be deposited with the government by the seller. GST is an indirect tax.
Question No-24: What is a bank reconciliation statement?
Answer: The Bank Reconciliation Statement or BRS is a form that allows individuals to compare their personal bank account records with those of the bank. BRS-When the balance of the bank account is different from the balance of the cash book account.
Question-25: What is daily accounting?
Answer: It is accounting software. Small businesses and shops use it to manage routine accounting transactions.
Question-26: What are fictitious assets?
Answer: Fictitious assets are immaterial assets, accompanied by profits over a longer period of time. Such as goodwill, rights, deferred revenue expenditure, misaligned expenditure, preliminary expenditure, and accumulated loss.
Test your knowledge with our basic accounting quizzes
Question No-27: Can you explain the basic accounting equation?
Answer: Yes, since we know that accounting is all about assets, liabilities, and capital. Hence a situation can be summarized as assets are equal to liabilities plus owner’s equity.
Question No-28: What are the different areas of accounting?
Answer: There are three branches or areas of accounting i.e. financial accounting, management accounting, and cost accounting.
Question No-29: What is the meaning of purchase return in accounting?
Answer: The name indicates that the purchase return is a transaction in which the purchaser returns those defective or unsatisfactory goods back to the seller.
Question No-30: What is retail banking?
Answer: Retail banking or consumer banking involves our retail outline. In where individuals, guests use local branches of larger commercial banks.
Question No-31: What is an offset accounting?
Answer: Offset accounting is a process for the cancellation of an accounting entry with an equal but opposite entry. Which reduces the amount of another account for the creation of a net balance.
Question No-32: What are trade bills?
Answer: These are the bills generated against each relation. And it is a part of the documentation procedure for all types of transitions.
Question No-33: What is fair value accounting?
Answer: According to fair value accounting, a company must show the value of all its assets in terms of the price on the balance sheet. On which that asset can be sold.
Question No-34: What happens to the case which is collected from the customers but not recorded as revenue?
Answer: It goes into the fat revenue on the balance sheet as a liability if no revenue has been earned.
Question No-35: Why did you choose Accounting as your profession?
Answer: I was good at numbers and accounting since my school days but it was during my ten plus two. I decided to adopt this field as a profession and then a bachelor’s and then a master’s in accounting.
Read Top 8 Accounting Study Tips
Question No-36: What is an MIS report have you prepared any?
Answer: Yes, I have prepared MIS reports. It is an acronym for the management information system and this report helps to identify fraud and competitive analysis of any department of a company.
Question No-37: What is the company’s payable cycle?
Answer: The company’s payable cycle means the time required by the company to pay all his account payables.
Question No-38: What is a scrap value in accounting?
Answer: Scrap value is a residential value of an asset that any asset holds after its estimated lifetime.
Question No-39: Which account is responsible for interest payable?
Answer: Current liability account is responsible for interest payable.
Question No-40: What are the main responsibilities of a bookkeeper?
Answer: Bookkeeper develops a financial transaction system by drawing up a chart of accounts; defining accounting policies and procedures. Maintains subsidiary accounts through verification, allocation, and posting of transactions. Balance accounts by reconciling entries.
Question No-41: What are the enhancing qualities of accounting information? Explain
Answer: The enhancing qualities of accounting information is stability, verifiability, timeliness, and comparability.
Question No-42: Explain the meaning of the credit term 2/10, N/30.
Answer: The credit word 2/10, N/30 means “2” which indicates the seller’s discount rate. “10” means the number of days within which the customer is to pay the invoice to obtain the discount. The payment has to pay for a period of time.
‘ N/30 ‘ states that if the purchaser does not pay the full amount of the invoice within 10 days to qualify for the discount. The net amount is due within 30 days from the date of sale of the invoice.
Question No-43: Is it mandatory for a firm or individual to prepare a bank reconciliation statement?
Answer: It is not mandatory for a firm or individual to prepare a bank reconciliation statement.
Question No-44: What is the meaning of payroll reconciliation?
Answer: Payrolls reconciliation is a necessary evil but it means that you have maintained clear accounting records for salaries and wages of workers, company expenses, deductions, and retention in order to meet tax needs.
Question No-45: What are the general rules for recording gains and losses on the retirement of plant assets?
Answer: Gains and losses on retirement of plant assets should be shown in the income statement along with other items that arise from business activities.
Question No-46: What is the five measurements method of inventory?
Answer: The five measurement method of inventory is
- FIFO,
- Weighted Average,
- Specific Identification,
- Retail Inventory, and
- Standard Cost.
Question No-47: What is off-balance sheet financing? Examples of off-balance sheet items.
Answer: Off-balance sheet items refer to assets or liabilities that do not appear on a company’s balance sheet. But those are nonetheless effective assets or liabilities of the company. Common examples of off-balance sheet items are consignment stock, sale and repurchase agreements, debt factoring and leasing, etc.
Question No-48: What is the Value-added Statement?
Answer: Value-added statement is a financial statement that deficits wealth created by an organization and how is that wealth distributed among various shareholders.
Question No-49: Define “comprehensive income.”
Answer: Comprehensive income is a statement of all income and expenses recognized during a specific period. The statement includes revenue, finance costs, tax expenses, discontinued operations, profit share, and profit or loss.
Question No-50: What is free cash flow?
Answer: Free cash flow is a measure of how much cash a business generates after accounting for capital expenditure. Such as buildings or equipment. This cash may be used for expansion, dividends, debt reduction, or other purposes.
I hope you’ve learned a lot about these “50 Accounting Job Interview questions and answers“. When you practice these on a daily basis, I think you’ll do every competitive test well.
But last but not least, these “50 Accounting Job Interview Questions and Answers” will help you do better in a job interview.
But if you want to do better, prepare well for the position you applied for, according to the position requirements, it will take you further to get the job.
If you have one thank them for their time and give up from handshake before smiling saying goodbye.
You can also read:
- Accounting Career Opportunities
- What is a CPA? How to Become a CPA?
- What is Forensic Accounting? The study, Career, and salary of Forensic Accountant.
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