15 Accounting Interview Questions And Answers 2024

Are you doing interviews for the job profile in accounting? We can assist you if you are unsure about the kinds of questions you could encounter during the interview.

But getting a career in accounting is hard since accountant interview questions can be hard to understand and difficult to answer. 

Knowledge-based and technical questions are frequently asked during accounting interviews in order to verify that you possess the abilities needed to thrive in the field.

Given below are a few questions related to accounting that can assist you with getting ready for your next interview.

What do you understand about the balance sheet?

Balance Sheet is a declaration including assets, liabilities, and capital of an association at some specific point.

What are debit and credit in accounting? 

A debit is an entry made for a paid or pending payment. In the ledger, a debit entry is normally made on the left side of an account. A transaction should credit one account and debit another in a double-entry system.

A credit entry records a drop in assets or an increase in obligation, as well as a decrease in expenses or a rise in revenue, together with income, profit, or gain realized.

Which accounting maxims are the most important? 

This is one of those basic accounting interview topics that calls for careful preparation. The golden rules of accounting are as follows: 

• Credit what leaves and debit what enters. 
• Credit the giver and debit the beneficiary. 
• Credit all profits and earnings, debit all costs and losses.

Can you explain Tally Accounting?

Tally accounting is an ERP programming that is involved by little as well as enormous organizations for business functionalities like accounting, payroll, stock, finance, and so on.

Can you differentiate between revenue and capital transaction?

Accounting includes two sorts of deals: capital and income. Revenue transaction alludes to the exchanges connecting with the everyday exercises. A capital exchange refers to the exchange for long term objectives like the acquisition of a proper resource.

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Explain Working Capital?

Working capital refers to the worth of current resources minus current liabilities that are utilized in everyday exchanging.

Explain VAT

VAT represents Value added tax. It is a kind of utilization charge put on an item’s sales price. It represents the cost of ‘value added’ on the item in its production stage.

What do you mean by basic accounting equation?

Measuring a company’s capital, assets, and liabilities is the core of accounting. Consequently, the fundamental accounting equation is:

Liabilities plus Owners Equity = Assets

How is auditing and accounting different?

Accounting and auditing are not the same terms. Accounting is concerned about keeping track of a company’s daily financial transactions, wherein auditing verifies that all these events are accurately recorded.

What are the rules of double entry book-keeping?

The concept of double entry accounting states that each debit has an equivalent credit, meaning that the sum of all credits equals the amount of all debits. This only indicates that a comparable account credits another account when one is debited simultaneously.

With regards to a personal account, credit the giver and debit the recipient.
Debit is what enters a real account, and credit is what exits it.
For a nominal account, debit all of the costs and credit all of the earnings.

 What is a debit and credit note?

Debit note is only an implication sent to an individual for managing the business and expressing that his record will be charged (debited) for the reason shown in that. A credit note is an implication note sent to an individual dealing with business expressing that his record will be credited for the reason shown in that.

 What is trial balance?

This is one more of the most notable questions for accounting jobs. A preliminary balance is a central accounting device used in the twofold segment of the accounting system to guarantee the reliability and precision of an association’s money related records.

 Explain inactive and dormant accounts.

Inactive accounts are ones that haven’t been used much recently, while dormant accounts have been inactive for a long time. With inactive accounts, you might still be able to use them, but with dormant ones, there could be restrictions.

 What does the term “general ledger account” mean? 

A company’s record of information on a certain kind of transaction, such as assets, liabilities, gains, losses, equity, etc., is called a general ledger. To put it briefly, the purpose of these accounts is to record all kinds of transactions that are combined and shown in the balance sheet and income statement.

 Describe Marginal Cost?

The projected cost of extra inputs needed to create an output is known as the marginal cost. The difference in production divided by the total cost change also yields the cost. This indicates the rise and fall in the product’s overall cost as a result of producing one more unit.

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FAQs

• What kinds of questions are asked during an interview with an accountant? 

During the interview for an accounting position, a variety of questions will be asked to you. Some questions, such as “Can you tell us about your previous accounting jobs?” may be related to your experience.

Your skills may be the subject of additional interview questions, such as “How do you handle financial reports?”

Questions concerning your familiarity with accounting concepts may also come up, such as “Can you explain the difference between accrual and cash accounting?” 

They may also ask about your ability to solve problems, for example, “How would you handle a discrepancy in the financial records?”

• What kinds of questions are asked during an interview with an accountant? 

The main focus of accounting is monitoring finances. It helps companies in knowing their financial situation. as well as its direction. There are certain fundamentals to be aware of:

• The money a business receives from the sale of goods or services is referred to as income.
• Expenses are the out-of-pocket expenses incurred by a business, such as hiring staff or purchasing goods.
• Valuable items that a firm holds, such as money, machinery, or real estate are known as assets.
• The financial obligations owed by a firm, such as payments or loans are called liabilities.
• The gap between a company’s assets and liabilities is known as equity. It resembles the proprietor’s portion of the company.

• What kinds of accounting are there?

Accounting comes in three primary forms:

• Recording and detailing monetary exchanges for external partners, including banks, financial backers, and government organizations, is the principal objective of monetary accounting. It consists of making fiscal summaries, for example, income, equilibrium, and payment statements. 
• Organizations use management accounting to help internal administration in navigation. It involves the examination of monetary information to give thoughts and experiences for raising productivity, cutting costs, and arriving at long-term objectives. 
• Tax accounting is the method involved with making and submitting assessment forms for individuals, organizations, and other legitimate associations. Tax accountants use credits, derivations, and different strategies to diminish commitments while guaranteeing adherence to regulations and guidelines in regards to taxes.

Whether one is going after an accounting job, an audit job or some other money related work, exhaustive preparation for the interview meeting is vital. Satisfactory preparation exhibits skill and imparts trust in your competence which provides a competitive impression during the interview process. 

Likewise, the candidate should know that the interviewer can pose specialized questions and conduct inquiries to check how well a candidate can handle different circumstances and connect them expertly.