Accounting Job Interview: Top 50 Q&A

Are you worried about the question of your accounting job interview? Don’t think about 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

Q-01: How many types of business transitions are there in accounting?

Answer: In accounting, there are generally two main types of business transactions: cash transactions and credit transactions. Cash transactions involve immediate payment, while credit transactions are based on an agreement to pay later.

Q-02: Explained real and nominal accounts with examples.

Answer: In accounting, real accounts are permanent accounts that carry their balances over from one accounting period to the next. Examples include assets like Cash, Equipment, and Inventory.

Nominal accounts, on the other hand, are temporary accounts that reset to zero at the end of each accounting period. Examples include revenues like Sales Revenue and expenses like Rent Expense.

Q-03: Which accounting platform have you worked on, and which one do you prefer the most?

Answer: I have experience working with various accounting platforms, including QuickBooks, Xero, and FreshBooks. Among these, I prefer QuickBooks the most due to its user-friendly interface and comprehensive features that cater well to small and medium-sized businesses.

Q-04: What is double-entry bookkeeping, and what are the rules associated with it?

Answer: Double-entry bookkeeping is an accounting system where every transaction affects at least two accounts, ensuring the accounting equation (Assets = Liabilities + Equity) remains balanced. The key rules associated with it include:

Debits and Credits: For every debit entry, there must be a corresponding credit entry of equal amount.
Account Types: Assets and expenses increase with debits and decrease with credits; liabilities, equity, and revenues increase with credits and decrease with debits.

Q-05: What is working capital?

Answer: Working capital is the difference between a company’s current assets and current liabilities, indicating the liquidity available to meet short-term obligations.

Q-06: How do you maintain accounting accuracy?

Answer: To maintain accounting accuracy, ensure regular reconciliations, implement internal controls, use reliable accounting software, and conduct periodic audits.

Q-07: What is TDS? Where are you showing TDS on the balance sheet?

Answer: TDS (Tax Deducted at Source) is a tax collection method where tax is deducted from payments. On the balance sheet, it is shown as a current asset until it is paid to the government.

Q-08: What is the difference between accounts payable and accounts receivable?

Answer: Accounts payable represents money a company owes to suppliers, while accounts receivable signifies money owed to the company by customers.

Q-09: What is the difference between a trial balance and a balance sheet?

Answer: A trial balance is an internal document listing all account balances to ensure debits equal credits, while a balance sheet is a formal financial statement showing a company’s assets, liabilities, and equity at a specific date.

Q-10: Is it possible for a company to show positive cash flows and still be in great trouble?

Answer: Yes, a company can have positive cash flows but still face trouble if those flows are from unsustainable sources or if it has significant debts or liabilities.

Q-11: What are the common errors in accounting?

Answer: The common errors in accounting include omission, commission, principle, and compensating errors.

Q-12: What is the difference between inactive and dormant accounts?

Answer: Inactive accounts have had no transactions over a specific period, while dormant accounts are those that have not been used for a length of time and are often subject to closure or fees.

Q-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 many, including International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), with numerous specific standards under each.

Q-14: Why do you think accounting standards are mandatory?

Answer: Accounting standards are mandatory to ensure consistency, transparency, and comparability of financial statements across different businesses and industries.

Q-15: Have you ever helped your company to save money or use their available financial resources effectively?

Answer: Yes, by analyzing expenses, identifying cost-saving opportunities, and optimizing resource allocation, I’ve helped improve the company’s financial efficiency.

You can also read: Why do you choose your career as an accountant?

Q-16: If our organization has three bank accounts for processing payments, what is the minimum number of ledgers that appear?

Answer: The minimum number of ledgers would typically be three, one for each bank account.

Q-17: What are some of the ways to estimate back dabs?

Answer: Methods to estimate bad debts include using historical data, aging accounts receivable, and applying a percentage of sales method.

Q-18: What is a deferred tax liability?

Answer: A deferred tax liability is a tax obligation that a company will need to pay in the future, arising when taxable income is less than accounting income due to temporary differences.

Q-19: What is a deferred tax asset, and how is the value created?

Answer: A deferred tax asset arises when a company has paid more tax than what is due, often created from deductible temporary differences and carryforwards.

Q-20: What is the equation of the asset test ratio in accounting?

Answer: The asset test ratio (or quick ratio) is calculated as (Current Assets – Inventory) / Current Liabilities, assessing short-term liquidity without relying on inventory sales.

Q-21: What are the popular accounting applications?

Answer: Popular accounting applications include QuickBooks, Xero, FreshBooks, and Sage.

Q-22: Which accounting application do you like the most and why?

Answer: I prefer QuickBooks due to its comprehensive features, user-friendly interface, and strong support for small businesses.

Q-23: Tell me something about GST.

Answer: GST (Goods and Services Tax) is a value-added tax applied to the sale of goods and services, designed to streamline the tax system by consolidating multiple taxes into one.

Q-24: What is a bank reconciliation statement?

Answer: A bank reconciliation statement is a document that compares a company’s bank statement with its own financial records, identifying discrepancies to ensure accuracy.

Q-25: What is daily accounting?

Answer: Daily accounting involves recording transactions, maintaining ledgers, and updating financial records on a daily basis for accurate financial tracking.

Q-26: What are fictitious assets?

Answer: Fictitious assets are intangible assets that do not have real value, such as preliminary expenses that are not expected to generate future benefits.

Test your knowledge with our basic accounting quizzes

Q-27: Can you explain the basic accounting equation?

Answer: The basic accounting equation is Assets = Liabilities + Equity, illustrating that what a company owns is financed by what it owes and the owners’ investment.

Q-28: What are the different areas of accounting?

Answer: Different areas of accounting include financial accounting, managerial accounting, tax accounting, auditing, and cost accounting.

Q-29: What is the meaning of purchase return in accounting?

Answer: A purchase return is a transaction where goods previously purchased are returned to the supplier, reducing the accounts payable and inventory.

Q-30: What is retail banking?

Answer: Retail banking involves providing financial services to individual consumers, including savings accounts, loans, and mortgages.

Q-31: What is offset accounting?

Answer: Offset accounting refers to adjusting one account against another to reflect the net amount, commonly used in situations where there are receivables and payables to the same entity.

Q-32: What are trade bills?

Answer: Trade bills are negotiable instruments used in commercial transactions, typically representing a promise to pay a specified amount at a future date.

Q-33: What is fair value accounting?

Answer: Fair value accounting measures assets and liabilities at their current market value, reflecting the price that would be received to sell an asset or paid to transfer a liability.

Q-34: What happens to the case that is collected from the customers but not recorded as revenue?

Answer: If cash is collected but not recorded as revenue, it creates an imbalance in financial records, leading to inaccuracies in financial reporting and misrepresented income.

Q-35: Why did you choose accounting as your profession?

Answer: I chose accounting because I enjoy working with numbers, analyzing financial data, and helping organizations achieve their financial goals.

Read: Top 8 Accounting Study Tips

Q-36: What is an MIS report? Have you prepared any?

Answer: An MIS (Management Information System) report provides key data and insights for decision-making. Yes, I have prepared MIS reports to analyze financial performance and operational efficiency.

Q-37: What is the company’s payable cycle?

Answer: The company’s payable cycle is the average time it takes to pay suppliers after receiving goods or services, influencing cash flow management.

Q-38: What is a scrap value in accounting?

Answer: Scrap value is the estimated residual value of an asset at the end of its useful life, used in calculating depreciation.

Q-39: Which account is responsible for interest payable?

Answer: The Interest Payable account is a liability account responsible for recording interest expenses that are owed but not yet paid.

Q-40: What are the main responsibilities of a bookkeeper?

Answer: Main responsibilities include recording financial transactions, maintaining ledgers, reconciling bank statements, producing financial reports, and ensuring compliance with regulations.

Q-41: What are the enhancing qualities of accounting information? Explain

Answer: Enhancing qualities include relevance, reliability, comparability, and consistency, which ensure that financial information is useful for decision-making.

Q-42: Explain the meaning of the credit term 2/10, N/30.

Answer: The term 2/10, N/30 means a buyer can take a 2% discount on the invoice total if paid within 10 days; otherwise, the full amount is due in 30 days.

Q-43: Is it mandatory for a firm or individual to prepare a bank reconciliation statement?

Answer: While not legally mandatory, it is highly recommended for accuracy and to identify discrepancies between bank and accounting records.

Q-44: What is the meaning of payroll reconciliation?

Answer: Payroll reconciliation is the process of ensuring that payroll records match the amounts reported and paid to employees, as well as aligning with tax submissions.

Q-45: What are the general rules for recording gains and losses on the retirement of plant assets?

Answer: Record gains when the proceeds from the sale exceed the asset’s book value and losses when the book value exceeds the proceeds of the sale.

Q-46: What is the five-measurement method of inventory?

Answer: The five-measurement method typically includes methods like FIFO (First In, First Out), LIFO (Last In, First Out), weighted average cost, specific identification, and retail inventory method for valuing inventory.

Q-47: What is off-balance sheet financing? Examples of off-balance sheet items.

Answer: Off-balance sheet financing refers to financial arrangements not recorded on the balance sheet. Examples include operating leases and certain joint ventures.

Q-48: What is the Value-added Statement?

Answer: The Value-added Statement reports the value added to raw materials through production, detailing how revenues are distributed among stakeholders.

Q-49: Define “comprehensive income.”

Answer: Comprehensive income includes all changes in equity during a period, except those resulting from investments by owners or distributions to owners, such as unrealized gains or losses.

Q-50: What is free cash flow?

Answer: Free cash flow is the cash generated by a company after accounting for capital expenditures, representing available cash for shareholders, expansion, or debt reduction.

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.

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