Table of Contents
Introduction
Are you preparing for an accounting job interview? If so, you might be wondering what type of questions to expect. Accounting interviews often test your knowledge of financial principles, bookkeeping practices, and industry standards.
To help you succeed, we’ve compiled 36 common accounting interview questions and answers that will prepare you for your upcoming job interview. By the end of this guide, you’ll gain confidence in tackling technical and HR-related accounting questions.
Common Accounting Interview Questions and Answers
1. Basic Accounting Concepts
- What is a balance sheet?
A balance sheet is a financial statement that lists a company’s assets, liabilities, and equity at a specific point in time. - What is Tally accounting?
Tally is an ERP software used for managing accounting, finance, inventory, payroll, and other business functions. - What is the difference between capital and revenue transactions?
- Capital transactions involve long-term assets like purchasing equipment.
- Revenue transactions relate to daily business activities like sales and expenses.
- What is working capital?
Working capital = Current Assets – Current Liabilities. It measures the company’s ability to fund its short-term obligations. - What does ‘premises’ mean in accounting?
Premises refer to a company’s physical assets, such as office buildings, as listed in the balance sheet. - What is VAT?
VAT (Value Added Tax) is an indirect tax applied to goods and services at each production stage. - What is the basic accounting equation?
Assets = Liabilities + Owner’s Equity
2. Accounting Methods and Principles
- How does accounting differ from auditing?
- Accounting involves recording financial transactions.
- Auditing checks the accuracy of these records.
- What is double-entry bookkeeping?
A method where every transaction is recorded in two accounts: one as a debit and one as a credit. - What are the three types of accounts in accounting?
- Personal Account: Debit the receiver, credit the giver.
- Real Account: Debit what comes in, credit what goes out.
- Nominal Account: Debit all expenses, credit all incomes.
- What is a debit note and credit note?
- Debit note: Sent to inform the seller of returned goods or adjustments.
- Credit note: Sent by the seller to acknowledge the reduction of a buyer’s dues.
3. Financial Transactions & Business Operations
- What is retail banking?
Retail banking involves banking services provided to individuals rather than businesses. - What are trade bills?
Trade bills are financial documents generated against business transactions. - What is a general ledger account?
A company’s record of financial transactions categorized by type (e.g., assets, liabilities, revenue). - What are balance sheet accounts?
Permanent accounts that carry their balances forward into the next accounting period. - What is marginal cost?
The cost of producing one additional unit of a product. - What does ‘overhead’ mean in accounting?
Overhead includes indirect business costs like rent, utilities, and salaries.
4. Advanced Accounting Concepts
- What is deferred tax liability?
The amount of taxes a company owes in the future due to temporary differences in accounting methods. - What is GAAP?
GAAP (Generally Accepted Accounting Principles) is a set of standardized accounting rules. - What is bank reconciliation?
The process of matching a company’s financial records with its bank statements to ensure accuracy. - What are fictitious assets?
Intangible assets like goodwill and patents. - How many accounting standards exist in India?
India follows 41 Accounting Standards (AS) set by the Accounting Standard Board (ASB).
5. HR Interview Questions for Accountants
- How do you ensure your work is error-free?
I double-check financial records, use accounting software, and follow strict review procedures. - Why did you choose accountancy as a profession?
Accounting offers stable career opportunities and allows me to leverage my skills in mathematics and problem-solving. - Why should we hire you?
I bring strong financial analysis skills, proficiency in accounting software, and a track record of improving financial reporting accuracy. - Do you prefer working alone or in a team?
I enjoy teamwork for brainstorming ideas but can work independently to meet deadlines efficiently. - Do you have any questions for us?
- What accounting software do you use?
- What are the team’s biggest challenges?
- What are the next steps in the hiring process?
Tips for Answering Accounting Interview Questions
- Know Accounting Standards: Familiarize yourself with GAAP and IFRS.
- Be Proficient in Accounting Software: Learn Tally, QuickBooks, and Zoho Books.
- Review Common Formulas: Refresh key financial calculations like working capital, profit margin, and depreciation.
- Practice Behavioral Questions: Employers also assess soft skills like teamwork, problem-solving, and communication.
FAQs About Accounting Interviews
1. What are the most important accounting interview questions?
Most common questions include balance sheet basics, accounting principles, and financial statement analysis.
2. How can I prepare for an accounting job interview?
Revise key financial concepts, practice technical questions, and familiarize yourself with accounting software.
3. What skills are important for accountants?
Key skills include analytical thinking, financial reporting, budgeting, tax preparation, and software proficiency.
4. What is the best way to answer ‘Why should we hire you?’ for an accounting role?
Highlight your technical skills, accounting software expertise, and problem-solving abilities.
5. How do I demonstrate my knowledge of accounting standards in an interview?
Mention familiarity with GAAP, IFRS, and ASB standards and provide examples of how you’ve applied them.
