Top 40 Accounting interview questions and answers for fresher

Top 40 Accounting interview questions and answers for fresher

Accounting interview questions and answers for fresher (Part 1)

  1. Why did you opt for accounting job?
  2. Do you have any prior experience in this field?
  3. Did you use any experience of working with accounting software at your previous companies.
  4. Do you know any other accounting application?
  5. Which accounting software do you prefer?
  6. What is the short terms debit and credit?
  7. How many types of transactions are recorded in accounting?
  8. What is the balance sheet?
  9. What is TDS, ?
  10. In the balance sheet, how do you show TDS?
  11. Do you know what is GST ?
  12. What is dormant accounts?
  13. What is tally ERP accounting Software?
  14. How can you define departmental accounting?
  15. Define fictitious assets?
  16. What do we mean perpetual inventory system?
  17. In accounting, how do you define the premises?
  18. What is accounting standard?
  19. How can you explain the basic accounting equation?
  20. Define Executive accounting?
  21. What is Public accounting?
  22. What is a bank reconciliation statement?
  23. Do you know different branches of accounting?
  24. What is difference between Accounting and Auditing?
  25. Do you understand what MIS is?
  26. Do you know bills receivable?
  27. Do you know different types of depreciation?
  28. Differentiate between consignor and consignee?
  29. What is the difference between provision and reserve?
  30. What is compound journal entry?
  31. Under what type of account do the unearned revenues fall?
  32. What is the difference between accumulated depreciation and depreciation expense?
  33. Explain what a deferred asset is and give an example?
  34. What is reversing journal entries?
  35. Where a cash discount should be recorded in a journal entry?
  36. What knowledge should financial accountant have?
  37. What is accrual accounting?
  38. What is the difference between depreciation and amortization?
  39. What is working capital?
  40. Do you know types of ledgers?

Accounting interview questions and answers (Part 2)

1.    Why did you opt for accounting job?

  Well, I was quite good at accounting during my college hence;   I decided to apply for  job

2.    Do you have any prior experience in this field?

Yes, I have one year / two years’ experience at two different places.

3.    Did you use any experience of working with accounting software at your previous companies.

Yes, I have used Tally ERP, & BUSY Accounting Software in my previous jobs.

 

4.    Do you know any other accounting application?

Yes, Sir I know MARG and SAP fico Software.

 

5.    Which accounting software do you prefer?

I like most of the software, however every software has its pros and cons. With Tally ERP you get simplicity with certain limitations.  It offers reliable and fast processing of accounting transactions that saves time and increases proficiency.  

6.    What is the short terms debit and credit?

      The debit   is “dr” and credit is “cr”.

7.    How many types of transactions are recorded in accounting?

There are many type of transactions like:- Sale, purchase, receipt, payment, journal and adjustment entries.

8.    What is the balance sheet?

Balance sheet is prepared to show financial health of an organization, it is a statement showing liabilities and assets on a particular date.

9.    What is TDS, ?

Yes, TDS means Tax Deduction at Source it is the income tax deducted by source while making payment to vendor.

10.  In the balance sheet, how do you show TDS?

TDS can be liability if deducted while making payment and it can be asset while receiving payments.

11.  Do you know what is GST ?

GST stands for Goods and Service Tax. It’s an indirect tax other than the income tax. The customer/clients pay the GST, and the seller deposits the GST with the government.  

12.  What is dormant accounts?

Dormant accounts are those that are not functional today but may be used in the future.

13.  What is tally ERP accounting Software?

It is the software used for accounting in small business and shops for managing routine accounting transactions.

14.  How can you define departmental accounting?

Departmental Accounting refers to maintaining accounts for one or more branches or departments of the company. Revenues and expenses of the department are recorded and reported separately. The departmental accounts are then consolidated into accounts of the head office of the company.

15.  Define fictitious assets?

Asset created by an accounting entry (and included under assets in the balance sheet) that has no tangible existence or realizable value but represents actual cash expenditure

16.  What do we mean perpetual inventory system?

Perpetual inventory system, the accounts are adjusted on a continual basis.  

17.  In accounting, how do you define the premises?

Premises refer to fixed assets shown in the balance sheet.

18.  What is accounting standard?

An accounting standard is a common set of principles, standards and procedures that define the basis of financial accounting policies and practices. GAAP Generally Accepted Accounting Principles form the set of accounting standards widely accepted for preparing financial statements.

19.  How can you explain the basic accounting equation?

We know that accounting is all about assets, liabilities, and capital. Therefore, the accounting equation is:

Assets = Liabilities + Owners Equity.

20.  Define Executive accounting?

Executive accountants typically focus on corporate accounting rather than public accounting, which means they oversee the finances for a business rather than helping individuals.

21.  What is  Public accounting?

Public accounting is firms of accountants that serve businesses individuals, nonprofit organizations, and governmental organizations.

22. What is a bank reconciliation statement?

A bank reconciliation statement is prepared when the passbook balance differs from the bank book balance.

23.  Do you know different branches of accounting?

“Financial Accounting,” “Management Accounting” and “Cost Accounting.”

24.  What is difference between Accounting and Auditing?

Accounting is all about recording daily business activities while auditing is the checking of  these events transactions.

25. Do you understand what MIS is?

Yes, I know MIS reports are created to identify the efficiency of any department of a company. MIS reports are created by using Microsoft excel.

26. Do you know bills receivable?

All types of exchange bills, bonds and other securities owned by a merchant that is payable to him are said as bills receivable.

27. Do you know different types of depreciation?

By depreciation has two types such as “Straight Line Method” and “Written down Value Method.”

28. Differentiate between consignor and consignee?

Consigner is the owner of the goods, or you can say he is the person who delivers the goods to the consignee. The consignee is the person who receives the goods.

29. What is the difference between provision and reserve?

Provisions are anticipated liabilities. Reserves are accumulated profits of any company,  

It is the indirect expenditure of a company such as salaries, rent dues, etc.

30. What is compound journal entry?

Yes I know It is  a combination of several simple journal entries.

31. Under what type of account do the unearned revenues fall?

The unearned revenues fall under “Liability” account.

32. What is the difference between accumulated depreciation and depreciation expense?

Accumulated depreciation: It is the total amount of depreciation that has been taken on a company’s assets up to the date of the balance sheet.

Depreciation expense: It is the amount of depreciation that is reported on the income statement. Basically, it is the amount that corresponds only to the period of time indicated in the heading of the income statement.

33. Explain what a deferred asset is and give an example?

A deferred asset refers to a deferred debit or a deferred charge. An example of a deferred charge is bond issue costs. These costs involve all of the fees or charges that an organization incurs in order to register and issue bonds. These fees are paid in a near time when the bonds are issued but it will not be expensed at that time.

34. What is reversing journal entries?

Reversing journal entries are entries made at the beginning of an accounting period to cancel out the adjusting journal entries made at the end of the previous accounting period.

35. Where a cash discount should be recorded in a journal entry?

A cash discount should be recorded in a journal entry as a reduction of expense in “cash account.”

36. What knowledge should financial accountant have?

  • A certified financial accountant should have knowledge about
  • Accounting/Bookkeeping principles and practices
  • Reporting and analysis of financial data
  • Auditing practices and principles
  • Account management
  • Budgets
  • Software knowledge dealing with Accounting
  • Knowledge of relevant laws, codes, and regulations
  • Good soft skills
  • Being a team player
  • Ability to learn quickly and up skill
  • Basic Technical skills

37.   What is accrual accounting?

Accrual Accounting is a method for measuring the performance and position of the company by identifying economic events regardless of when the cash transaction happened. In this method, compare revenue with the expenditures, at the time in which the transaction happens rather than when the payment is made.

38. What is the difference between depreciation and amortization?

  • Capital expenses are either depreciated or amortized based upon the type of asset.
  • Depreciation
  • Amortization
  • Depreciate means to lose the value of an asset due to their usage, wear and tear, outdated, etc.
  • The depreciation cost is calculated in terms of tangible assets like furniture, plant & machinery, building, etc.
  • The purpose of calculating depreciation costs recovery
  • The easiest way to calculate depreciation is to know the loss of value of an asset over its life.

39. What is working capital?

Working capital is a financial metric that calculates the resources available to the company to finance its day-to-day operations. It is typically calculated by deducting current liabilities from current assets.

40.  Do you know types of ledgers?

  • There are three types of ledger
  • General ledger
  • Debtors ledger
  • Creditors ledger

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