Top Interview Questions on Accounting with Answers for Freshers

Top Interview Questions on Accounting with Answers for Freshers Top Interview Questions on Accounting with Answers6 min read Read ­ing Time: 5 min ­utesAn inter ­view is a nerve-wrack ­ing time for all can ­di ­dates irre ­spec ­tive of their expe ­ri ­ence or field. This is a moment where one must come to prove that their skills and knowl ­edge meet up to the stan ­dards and require ­ments of the inter ­view ­er. As dif ­fi ­cult as it may be, there are always those who have been through this before you and can thus pro ­vide you with a look into what the process is like ­ly to be and what can be asked of you or from you. So let us focus on a spe ­cif ­ic field and look into what are the inter ­view ­ers seek ­ing in the field of account ­ing appli ­ca ­tion. Account ­ing inter ­view can cov ­er every ­thing from the ­o ­ret ­i ­cal to prac ­ti ­cal ques ­tions. It could cov ­er pri ­ma ­ry account ­ing process ­es like finan ­cial account ­ing, fixed assets, lia ­bil ­i ­ty accounts, ledger accounts, type of account ­ing, accounts receiv ­able, accounts payable, etc. As a result, it is very cru ­cial to clear your basics about account ­ing. While there are things that can only be learned by prac ­ti ­cal expe ­ri ­ence, the ­o ­ret ­i ­cal knowl ­edge also holds great impor ­tance. Here is a brief glimpse into the pos ­si ­ble job inter ­view ques ­tions on account ­ingfor those who are right out of col ­lege and look ­ing for a job, sit ­ting for inter ­views. Search for all cur ­rent upcom ­ing Account ­ing Jobs. Click here tofind thou ­sands of Account ­ing Jobs in India. Interview Questions on Accounting with Answers: Q. Is there more than one kind of business transactions in accounting? If yes, name them. A. Yes, rev ­enue and cap ­i ­tal are the two kinds of busi ­ness trans ­ac ­tions in account ­ing. Q. Explain and give examples of real and nominal accounts? A. An account made up of assets and lia ­bil ­i ­ties is a real account while one made up of income and expens ­es is a nom ­i ­nal one. An exam ­ple of the for ­mer is a land account while that of the lat ­ter is a wages account. Q. Name some accounting platforms you know of? A. Fresh ­Books, Sage 50Cloud, Net ­Suite ERP, Quick ­Books Enter ­prise, Tipalti, Zoho Books, Gus ­to, FreeAgent, Sage Busi ­ness Cloud Account ­ing, Xero, ADP Work ­force Now. Q. Double-entry bookkeeping rules are specific. What is it and what are they? A. An account ­ing prin ­ci ­ple where each deb ­it entry has a cor ­re ­spond ­ing cred ­it entry to bal ­ance the books is known as dou ­ble-entry book ­keep ­ing. The rule states that the total deb ­it must always equal the total deb ­it. This is pos ­si ­ble by not ­ing that every deb ­it from some account leads to cred ­it in some oth ­er account. Q. Define working capital? A. When we sub ­tract cur ­rent lia ­bil ­i ­ties from cur ­rent assets, the amount cal ­cu ­lat ­ed is used for day to day trad ­ing and is known as the work ­ing cap ­i ­tal. Q. How can accuracy be maintained in accounting? A. To avoid loss ­es it is impor ­tant that com ­plete accu ­ra ­cy is main ­tained in account ­ing for a com ­pa ­ny or even a per ­son. There ­fore, it is best that the laid town tools and process ­es are used in order to ensure errors are not made and cor ­rect ­ed if made. Q. What do you understand by TDS and where is it shown in the balance sheet? A. The Tax deduct ­ed at Source (TDS) is a con ­cept that was inter ­cept ­ed to col ­lect tax from peo ­ple and legal enti ­ties at each source of income to ensure tax is not evad ­ed or mis ­cal ­cu ­lat ­ed. When it comes to a bal ­ance sheet, the same is record ­ed as an asset fol ­low ­ing the head of cur ­rents assets. Q. What differentiates a trial balance from a balance sheet? A. Arith ­meti ­cal accu ­ra ­cy in not ­ing all bal ­ances in a ledger in their record ­ing and post ­ing is the iden ­ti ­ty and role of a tri ­al bal ­ance. Con ­trary to this is a bal ­ance sheet where all the assets, lia ­bil ­i ­ties, and equi ­ty of a com ­pa ­ny are list ­ed to know its finan ­cial posi ­tion on the giv ­en date. It is also true that the for ­mer is an inter ­nal doc ­u ­ment to a com ­pa ­ny while the lat ­ter needs to statu ­to ­ri ­ly be pub ­lished. Q. When is a company that has a positive cash flow in trouble? A. This sit ­u ­a ­tion may devel ­op if there is an unsus ­tain ­able improve ­ment in the work ­ing cap ­i ­tal but there is a seri ­ous lack of rev ­enue in the pipeline for the future. Q. Are dormant and inactive accounts different? A. The dif ­fer ­ence between the two is that of per ­ma ­nence. The for ­mer is tem ­porar ­i ­ly not being used but will be even ­tu ­al ­ly but the lat ­ter is one that is closed and will nev ­er be used going for ­ward. Won ­der ­ing what does an accoun ­tant do? Click here to read about accoun ­tant job descrip ­tion, qual ­i ­fi ­ca ­tions, key skills more. Q. Can you list the Accounting Standards? A. There are cur ­rent ­ly 41 Account ­ing Stan ­dards that have been issued by the Account ­ing Stan ­dards Board (ASB). The manda ­to ­ry ones from these are: AS1 Dis ­clo ­sure of Account ­ing Poli ­cies AS2 Val ­u ­a ­tion of Inven ­to ­ries AS3 Cash Flow State ­ments AS4 Con ­tin ­gen ­cies and Events Occur ­ring After Bal ­ance Sheet Date AS5 Net prof ­it or loss for the peri ­od, Pri ­or Peri ­od Items and Changes in Account ­ing Poli ­cies AS7 Con ­struc ­tion Con ­tracts AS9 Rev ­enue Recog ­ni ­tion AS10 Prop ­er ­ty, Plant and Equip ­ment AS11 The Effects of Changes in For ­eign Exchange Rates AS12 Gov ­ern ­ment Grants AS13 Account ­ing for Invest ­ments AS14 Account ­ing for Amal ­ga ­ma ­tions AS15 Employ ­ee Ben ­e ­fits AS16 Bor ­row ­ing Costs AS17 Seg ­ment Report ­ing AS18 Relat ­ed Par ­ty Dis ­clo ­sures AS19 Leas ­es AS20 Earn ­ings Per Share AS21 Con ­sol ­i ­dat ­ed Finan ­cial State ­ments AS22 Account ­ing for Tax ­es on Income AS23 Account ­ing for Invest ­ments in Asso ­ciates AS24 Dis ­con ­tin ­u ­ing Oper ­a ­tions AS25 Inter ­im Finan ­cial Report ­ing AS26 Intan ­gi ­ble Assets AS27 Finan ­cial Report ­ing of Inter ­ests in Joint Ven ­tures AS28 Impair ­ment of Assets AS29 Pro ­vi ­sions, Con ­tin ­gent Lia ­bil ­i ­ties, and Con ­tin ­gent Assets Q. Why are the Accounting Standards mandatory? A. The applic ­a ­bil ­i ­ty of these stan ­dards ensures that accu ­rate, reli ­able and rel ­e ­vant finan ­cial reports are cre ­at ­ed by com ­pa ­nies and peo ­ple there ­fore, they play a very impor ­tant role. Q. What can you tell me about GST? A. The Goods and Ser ­vice Tax (GST) is a form of indi ­rect tax apart from the Income Tax. This is charged by the sell ­er to the cus ­tomer and is cal ­cu ­lat ­ed on the val ­ue of the product/ ser ­vice and its cat ­e ­go ­riza ­tion by the gov ­ern ­ment. Then the sell ­er should deposit the same to them. Q. Can you name some of the most popular accounting concepts? A. Some of these con ­cepts are: Account ­ing Peri ­od Con ­cept ­Busi ­ness Enti ­ty Con ­cept ­Cost Con ­cept ­D ­ual Aspect Con ­cept ­Go ­ing Con ­cern Con ­cept ­Match ­ing Con ­cept ­Money Mea ­sure ­ment Con ­cept Q. Can you name some common errors in accounting? A. Some of the most com ­mon errors in account ­ing can be: Error of omis ­sion An error of orig ­i ­nal entry Error of com ­mis ­sion An error of account ­ing prin ­ci ­ple Com ­pen ­sat ­ing error An error of entry rever ­sal Error of dupli ­ca ­tion Q. What are the principal financial accounts in an Organization? Prof ­it Loss account: These accounts depict the results of busi ­ness oper ­a ­tions through a cer ­tain peri ­od. It cov ­ers the rev ­enues, the costs involved as well as the sur ­plus or deficit. Bal ­ance Sheet: This tells the posi ­tion of assets as well as lia ­bil ­i ­ties as on a par ­tic ­u ­lar date. It is impor ­tant to assess what is owned by the con ­cern in con ­trast to what it owes to the stake ­hold ­ers. Cash Flow State ­ment: This finan ­cial account depicts the flow of cash into and out of the three major activ ­i ­ties of oper ­a ­tions, financ ­ing as well as invest ­ing. These sets of ques ­tions are not an exhaus ­tive col ­lec ­tion of inter ­view ques ­tions on account ­ing and thus you should study as much as you can for that. Just like any oth ­er field, there are always more things to learn and dis ­cov ­er in the account ­ing field as well. So keep your choic ­es open and nev ­er miss an oppor ­tu ­ni ­ty to expand your hori ­zon. We wish you the best of luck with your inter ­view. Relat ­ed Posts: Job Search Online â€" Tips to become a Pro at Job Search Jobs For Fresh ­ers that Promise A Bright Future accounting interview questionsaccounting interview questions and answersaccounting interview questions for freshers experiencedinterview questions on accounting