Accounting Job Interview Questions with Answers
Accounting is a job that will never go out of style, as there will always be a need for qualified accountants in a variety of fields. For individuals with a knack for statistics and spreadsheets, it can be an excellent career choice. To advance in your profession as an accountant, you'll need a strong grasp of financial principles, accounting, and other relevant areas. You've come to the perfect site if you're going to an accountant interview and want to know the most common accounting interview questions.
This article includes answers to some of the most commonly asked accounting interview questions and can help you ace your next accounting interview.
Top Accounting Job Interview Questions and Answers:-
1. Tell me about yourself
Ans: The employer's goal is to break the ice and get to know you better so you may drive the conversation in the direction you want. This is, without a doubt, why it is so crucial. You must provide examples of events and times in your life that brought you to the accounting sector in your response. When you were a kid, were you the treasurer of your soccer team? Have you been saving for a car for months? To make a good first impression, anything goes.
2. What are the various types of accounting?
Ans: Various methods of accounting include:
- Financial Accounting- This division of accounting keeps track of, summarises, and reports on an organization's business transactions throughout time. Both the private and public sectors demand it.
- Administrative Accounting- Administrative accounting focuses on the company's administrative components and is primarily used to examine the achievement of set goals and enhance the strategy in place. It's quite useful for forecasting and planning activities and resources to be employed.
- Cost Accounting- This style of accounting is more geared toward industrial businesses. It facilitates a thorough examination of the company's unit costs of production, sales, and, in general, the manufacturing process.
- Tax accounting- Tax accounting aids in the registration and preparation of reports connected to tax returns to the public treasury and tax payment.
- Management/Managerial Accounting- Management/Managerial accounting has a greater scope than cost accounting since it captures all of the company's economic and financial data so that short- and long-term choices may be made.
Ans: Describe the accounting platforms you've used (QuickBooks, Microsoft Dynamic GP, etc.) and which one you preferred.
Demonstrate that you are familiar with the accounting platform you use. You can also define which kind of companies employ them. Small and growing businesses typically use QuickBooks Online's inexpensive plan to create invoices, track spending, and use the software's built-in reports.
4. What is Working Capital?
Ans: Working capital, which is employed in day-to-day trading, is computed as current assets minus current liabilities.
Working capital, in a simple accounting scheme, refers to the capital resources that a company can rely on to operate in the short term. Cash, a portfolio of financial goods, and other investments made by the corporation are among the company's resources.
5. Make a suggestion to improve the working capital flow of the company.
Ans: Stock on hand, in my opinion, can be the key to boosting a company's working capital. The stock is the only part of working capital that we have control over. We can put pressure on our debtors to pay us immediately, but we don't have direct influence over them because they're independent legal organizations that, in the end, offer us business.
We have a tendency to put off paying our suppliers, but this damages business relationships and hurts the industry's reputation. Furthermore, if we postpone payments, they may not be able to provide goods in the future. Maintaining liquidity in the form of bank funds might help with the flow of working capital, but it comes at a cost.
With all of this in mind, I believe that inventory management may be extremely beneficial to a company's working capital. Overstocking should be avoided at all costs, and stock turnover should be high.
This is a generic response. Electronic commerce, telecoms, and other businesses operate with negative working capital. So, before you respond, conduct some homework on working capital.
6. How do you keep your accounting records accurate?
Ans: Maintaining the accuracy of an organization's accounting is critical because a mistake can lead to a significant loss. There are a variety of methods and resources that may be utilised to reduce the risk of errors and address them swiftly if they do occur. MS Excel is my personal favourite.
The following are some of the most prevalent methods for ensuring accounting accuracy:
- Identify the sources of revenue.
- Pay attention to invoices and receipts.
- Prepare tax returns in order to avoid paying a penalty.
- By preparing financial statements
- Keep track of your tax-deductible expenses.
Ans: Explain the below benefits:
- Excel helps you save a lot of time. One example is using macros to automate repetitive and predictable operations. This makes it possible to format, filter, and analyze large amounts of data in a matter of seconds.
- Excel has a lot of customization options. Accountants must use Excel to construct reports with tables and graphics. Without needing to use or develop additional templates, the same can be used to make other reports.
- When it comes to comparing financial facts, Excel comes in handy. It aids in the tracking of financial data and determining the source of cash flow.
8. What exactly is TDS? On a balance sheet, where do you put TDS?
Ans: TDS (Tax Deducted at Source) is a concept that aims to collect taxes from all sources of income. It appears in the assets part of a balance sheet, just after the head current asset.
9. What is the distinction between "accounts payable" (AP) and "accounts receivable" (AR)?
Ans: The amount owed by a firm to a vendor or supplier because it bought products or services on credit. Accounts payable are a type of liability.
The sum that a corporation is entitled to recover because it offered products or services to a customer on credit. Assets are accounts receivable.
10. What's the difference between a balance sheet and a trial balance?
Ans: A trial balance is a list of all balances in a ledger account that is used to ensure arithmetical accuracy when recording and posting transactions. A balance sheet, on the other hand, is a statement that reveals a company's assets, liabilities, and equity on a specific date and is used to determine the company's financial status.
11. Is it possible for a corporation to have positive cash flows while still being in serious financial trouble?
Ans: Yes, if it reflects an unsustainable growth in working capital as well as a lack of income in the pipeline.
12. What are the most usual accounting mistakes?
One of the most common accounting interview questions is this one.
Ans: The most common accounting errors are:
- Using personal and business accounts together
- There is a lack of communication between the business and the accountant.
- Failure to keep a backup
- Resources that were misallocated
- Not keeping receipts
- Carrying out accounting by manually
- Not keeping the accounting books up to date
Ans: Inactive accounts are those that have been closed and will not be used again. Dormant accounts aren't active right now, but they could be useful in the future.
14. Do you know what the Accounting Standards are? In India, how many accounting standards are there?
Ans: It is critical that you demonstrate mastery of International Accounting Standards, even if you have never worked as an accountant before. Although it is true that knowing this subject by heart is impossible, you should have studied the most current modifications before to the interview so that you are prepared to discuss them.
The International Accounting Standards Board now has 41 accounting standards that it issues on a regular basis (IASB).
15. Why do you consider that Accounting Standards are necessary?
Ans: Accounting standards are crucial in the preparation of a good and accurate financial report. It ensures the accuracy and relevance of financial statements.
Accounting Standards are used to establish financial papers for every business.
Because of the uniformity, it is possible to compare one's market position to that of others who adhere to the same necessary rules. There is no room for misrepresentation because there is a standard technique in place.
16. What is the minimum number of ledgers required by our organization if it has three bank accounts for payment processing?
Ans: For effective accounting and reconciliation processes, each account has three ledgers.
17. What are some methods for calculating bad debts?
Ans: The percentage of outstanding accounts, ageing analysis, and percentage of credit sales are all prominent methods for determining bad debts.
18. What is the meaning of deferred tax liability?
Ans: Deferred liability refers to the possibility of a firm paying more tax in the future as a result of present transactions.
19. What is a deferred tax asset, and how does it get value?
Ans: When a tax amount has been paid or carried forward but not yet recognized in the income statement, it is referred to as a deferred tax asset. The difference between the book and taxable income is used to calculate the value.
20. In accounting, what is the formula for the Acid-Test Ratio?
Ans: The accounting calculation for the Acid-Test Ratio
Acid-Test Ratio=(Current Assets – Inventory) / Current Liabilities
21. Name a few popular accounting software.
Ans: Accounting software such as CGram Software, Financial Force, Tally ERP 9, Quickbook, Microsoft Accounting Professional, Microsoft Dynamics AX, and Microsoft Small Business Financials are all recognizable to me.
25. What do you mean by fictional assets?
Ans: Fictitious assets, such as goodwill, rights, deferred revenue expenditure, incidental expenses, preliminary expenses, and accumulated loss, are intangible assets whose advantage is gained over a longer period.
Is it possible for you to explain the basic accounting equation?
Ans. Yes, because accounting is all about assets, liabilities, and capital, as we all know. As a result, its equation can be summed up as follows:
Liabilities + Owners Equity = Assets.
27. What exactly is CMM?
Ans: The Capacity Maturity Model (CMM) is a document that contains a model and six pieces of infrastructure for assessing the efficacy and capability of a company's financial process.
28. What does purchase return indicate in accounting?
Ans: A purchase return, as the name implies, is a transaction in which a buyer of items, inventory, or fixed assets returns defective or unsatisfactory goods to the seller.
29. What is the definition of retail banking?
Ans: Retail banking, often known as consumer banking, involves individual clients visiting local branches of larger commercial banks
30. What is offset accounting and how does it work?
Ans: The technique of cancelling an accounting entry with an equal but opposite entry is known as offset accounting. To produce a net balance, it reduces the net amount of another account.
31. What are the trade bills?
Ans: These are the bills that each transaction generates. It is a requirement of all forms of transactions' documentation.
32. What is fair value accounting, and how does it work?
Ans: According to fair value accounting, a corporation must represent the worth of all of its assets on the balance sheet in terms of a price at which the asset can be sold.
33. What happens to the money that is taken from clients but not recorded as revenue?
Ans: If no revenue has been earned yet, it is recorded as a liability on the balance sheet as "Deferred Revenue."
When it comes to accounting, how crucial is documentation?
Ans. I believe that any company's accounting team has a responsibility to give a true and fair picture to the company's shareholders and management. The accounting department acts as the organization's watchdog.
As a result, accounting documentation becomes extremely crucial. Appropriate documentation must be verified in order to establish an adequate audit trail that can be justified as needed.
35. What exactly is a MIS report, and have you ever written one?
Ans: Yes, I've written management information reports. It stands for Management Information System, and this report is used to determine the efficiency of any company's department.
What exactly do you mean when you say "the company's payable cycle"?
Ans. It is the amount of time that the company needs to settle all of its account payables.
37. In accounting, what is scrap value?
Ans: Scrap value is the asset's remaining value once it has reached the end of its expected lifespan.
38. Which account is responsible for the payment of interest?
Ans: The current liability account is in charge of interest payments.
39. What is the accounting system for departments?
Ans: It's a type of accounting information system that keeps track of all of the department's financial data and activities. This financial data can be used to assess each department's profitability and efficiency.
40: What is the definition of a perpetual inventory system?
Ans: Perpetual inventory is an approach that involves employing business asset management software and computerized point-of-sale systems to immediately record the sale or purchase of inventory.
41. When you claim you have negative working capital, what exactly do you mean?
Ans: Negative working capital occurs when a company's current obligations outweigh its current assets. It's a term that's commonly used in industries like retail and restaurants.
42. What are the Golder rules of accounting?
Ans: The three golden rules of accounting can be mentioned.
- Debit the receiver, credit the giver
- Debit what comes in, credit what goes out
- Debit all expenses and losses, credit all incomes and gains
43. Please explain what the phrase "Debit the Receiver, Credit the Giver" implies.
Ans: In the case of personal accounts, this approach is used. When a person gives money to an organization in cash or by check, it is considered an inflow, and that individual must be credited in the books of accounts. As a result, when an organization receives money or a check, it must credit the payer while debiting the organization.
44. Do you know what ICAI stands for?
Ans: It is, of course, the abbreviation for India's Institute of Chartered Accountants.
45. What are some instances of fixed assets that you record on your balance sheet?
Ans: You must explain your grasp of the idea in order to answer this accounting interview question. You might wish to specify fixed assets first before jumping to the answer. A quick introduction, such as – fixed assets are those that are not used in a single fiscal year, can reassure the recruiter that you are referring to long-term assets. You might also specify that these assets are listed in the balance sheet's asset section.
Automobiles, furniture, office space, and any other equipment that an organisation requires are examples of fixed assets.
46. What is the definition of executive accounting?
Ans: Executive Accounting was created with service-based enterprises in mind. This phrase is commonly used in the fields of finance, advertising, and public relations.
47. What are the bills receivable?
Ans: The proceeds or payments that a merchant or a firm will receive from its customers are known as bills receivable.
When answering accounting interview questions, be detailed and avoid talking about general topics.
48. Define the term "balancing."
Ans: Balancing a T-account involves equal or balancing both the debit and credit sides.
49. What do you mean by marginal cost?
Ans: When the number of units produced increases, the overall cost of output changes. The difference in the cost of an additional unit of output is known as marginal cost.
50: What are Trade Bills, exactly?
Ans: Each transaction is documented, and trade bills are the records that are generated for each transaction.
51: Could you explain what the word "Material Facts" means?
Ans: These are documents like vouchers, bills, debit and credit cards, or receipts, among others. Every account book's foundation is made up of these.
52. What stages does the Double Entry System go through?
Ans: The double-entry system is divided into three steps, which are as follows:
- Transactions are recorded in accounting systems.
- In each ledger account, prepare a trial balance.
- Closing the books of accounts and preparing final paperwork
53. What are the drawbacks of using a double entry system?
Ans:
- It's difficult to spot mistakes, especially when they're recorded in the books.
- In the event of an error, a lot of clerical work is necessary.
- You can't reveal all of the details of a transaction that hasn't been properly recorded in the journal.
54. What is the definition of Assets minus Liabilities?
Ans: An owner's or stockholder's equity is represented by Assets Minus Liabilities.
55. What is GAAP (Generally Accepted Accounting Principles)?
Ans: GAAP is the abbreviation for the Institute of Chartered Accountants of India's (ICAI) Generally Accepted Accounting Principles (GAAP) and the regulations of the Companies Act, 1956. It's a collection of accounting standards and common industry practice that's utilized by businesses to:
- Keep accurate records of their financial details.
- Compile financial statements from accounting records.
- When necessary, make information public.
56. Could you provide me an example of a liability account?
Ans: The following are some common instances of liability accounts:
- Accounts Payable
- Accrued Expenses
- Bonds Payable
- Customer Deposits
- Income Taxes Payable
- Installment Loans Payable
- Interest Payable
- Lawsuits Payable
- Mortgage Loans Payable
- Notes Payable
- Salaries Payable
- Warranty Liability
57. What's the difference between receivables and revenue deferred?
Ans: Accounts receivable is cash that has yet to be received from customers for items or services that have already been sold/provided, whereas deferred revenue is cash received from customers for services or goods that have not yet been supplied.
58. In a journal entry, where should you record a cash discount?
Ans: A cash discount should be reported in a cash account as a reduction in expenses.
59. What is the definition of a compound journal entry?
Ans: The main distinction between a compound journal entry and regular accounting entries is that it affects more than two account heads. There is one debit, more than one credit, or more than one of both debits and credits in a compound journal entry.
60. What is the word "dual aspect"?
Ans: Every commercial transaction, according to the dual aspect, necessitates double-entry bookkeeping. This can be illustrated with the following example: When you buy something, you provide cash and receive the item; when you sell something, you lose the item and gain money. Every transaction's aspects are defined by this.
61. Define the term "depreciation."
Ans: This is one of the most basic accounting interview questions. You can simply state that depreciation is the process of an asset's value declining over time. It is required for computing a company's net income at the end of each accounting period.
62. What are the different types of depreciation?
Ans: This is a follow-up question to the accounting interview question from earlier. Mention the following frequent ways of depreciation.
- Straight Line Depreciation
- Double Declining Balance
- Units of Production
- Discounted Cash Flow
As variables, all of these methods have the same inputs.
Useful Life — This is the amount of time that an asset remains a cost-effective alternative for a company. The asset is no longer useful after this period.
Salvage Value — This is the asset's value after it has been depreciated. It is possible for a company to sell it for a lower price.
Total Cost of Asset - This is the total cost of an asset, including taxes, shipping, and other expenses.
You can emphasize how they are computed to support this accounting interview answer.
Over the course of a year, the calculation for straight line depreciation is
Depreciation Expense = Total Cost of Asset – Salvage Value (estimated) / Asset's Useful Life (Annual)
The formula for determining the Double Declining Balance is as follows:
Depreciation Expense (Annual)= (Total Cost of Asset – Estimated Salvage Value / Asset's Useful Life) x 2
63. What's the difference between a consignor and a consignee?
Ans: Consigner – Those who is the shipper of the goods
Consignee – Those who is the recipient of the goods.
64. Define Partitioning.
Ans: Partitioning refers to the division/subdivision/grouping/regrouping of financial transactions in a given financial year.
65. Differentiate between Provision and Reserve.
Ans:
Provisions – This refers to keeping the money for a given liability. In short, EXPENSES.
Reserves – Refers to retaining some amount from the profit for future use. In short, PROFITS.
66. What does it mean to have an overaccrual?
Ans: It is a circumstance in which the accrual journal entry estimate is extremely high, and it might apply to income or expense accrual.
67. What does it mean to reverse journal entries?
Ans: The journal entries that are produced as an accounting period begins are referred to as reversing entries. The adjusting journal entries made at the end of the previous accounting period are reversed or cancelled by these entries.
68. Give examples of intangible assets.
Ans: The following are examples of intangible assets:
- Patents
- Copyrights
- Trademarks
- Brand names
- Domain names
69. What is the cost of bad debt?
Ans: Bad debt expenditure is a company's asset accounts receivable, and it's also known as uncollectible accounts expense or dubious accounts expense.
70. When should you capitalize a purchase rather than expense it?
Ans: An item's cost is capitalized if the corporation expects to consume it over a long period of time. Their economic value does not diminish as a result of this.
71. When does a person's goodwill grow?
Ans: Goodwill can be increased by paying more than the fair worth of a company's tangible and intangible assets to acquire it as a subsidiary.
72. What are Revenue Recognition and Matching Principles? Q73. What are Revenue Recognition and Matching Principles?
Ans: The Income Recognition Principle states that revenue should be recognised and recorded as soon as it is generated and earned, regardless of when the money is paid.
The Matching Principle requires enterprises to record an expense on their income statement at the same time that the relevant revenues are collected. It's linked to the accrual method of accounting.
73. Different accounting concepts should be named.
Ans: The most widely used accounting concepts are as follows:
- Accounting Period Concept
- Business Entity Concept
- Cost Concept
- Dual Aspect Concept
- Going Concern Concept
- Matching Concept
- Money Measurement Concept
74. What is mean by owner's equity?
Ans: An owner's equity claim is a claim made by a business owner against the assets of the company. It's also known as the company's capital, and it's derived by deducting the creditors' equity from the overall equity.
75. What is mean by debit note?
Ans: A debit note, also known as a debit memorandum, is a commercial document that formally requests a credit note from a seller. The original paperwork is forwarded to the person to whom the goods are being returned, while a duplicate copy is kept in the office for record-keeping purposes.
76. What is mean by credit note?
Ans: A credit note is a receipt supplied by the seller/shop to a buyer who has returned a product. This signifies that the buyer's account is being credited for the stated purpose.
77. Explain the concept of contingent liabilities.
Ans: Potential commitments that may or may not become actual liabilities are known as contingent liabilities. They may or may not be incurred by an entity depending on the outcome of an unpredictable future event, for example, if an ex-employee of ABC sues the company for gender discrimination for a specific amount, the company has a contingent liability. The corporation will have a liability if it is found guilty, and it will not have an actual liability if it is not proven guilty.
78. What is GST, and how does it work?
Ans: The Goods and Service Tax, or GST, is an indirect tax levied on the value of a service or product sold to a consumer. The tax is paid by the customers to the merchant, who then pays the GST to the government.
79. Can you name a few frequent accounting errors?
Ans: The following are some common accounting mistakes.
- Error of omission
- Error of commission
- Error of original entry
- Error of accounting principle
- Compensating error
- Error of entry reversal
- Error of duplication
80. What is the definition of project implementation?
Ans: The implementation phase of a project is when the ideas and visions become a reality. This comprises doing the tasks necessary to provide the outputs and keeping track of their progress.
81. What are the different stages of project implementation?
Ans: The following are the six steps involved in project implementation:
- Identifying need
- Generating and screening ideas
- Conducting a feasibility study
- Developing the project
- Implementing the project
- Controlling the project
82. Are you a supporter of accounting standards?
Ans: Accounting standards, in my opinion, help to high-quality, accurate reporting and assure the accuracy of financial accounts.
83. What exactly do you mean by amortization, and why do you include it in your journal?
Ans: Amortization is an accounting concept that allows you to write off an expense over time. Any intangible asset's cost can be allocated over a period of time via amortization. It can also be used to repay any loan principle. Goodwill, on the other hand, cannot be amortized because it has an endless existence.
The accounting notion of amortization differs from that of depreciation. The main distinction between amortization and depreciation is how they are used. Intangible assets benefit from amortization, whereas tangible assets benefit from depreciation. Amortization, unlike depreciation, has no salvage value. Another significant distinction is that depreciation can be calculated using both the straight-line and accelerated methods, whereas amortization can only be calculated using the straight-line technique.
84. What all included in current assets?
Ans: The following items will be included:
- Closing inventory
- Bank and cash value
- Supplies
- Account Receivables
85. What will be included in the equity of the owner?
Ans: The following items will be included in owner equity:
- Capital
- Retained earnings
86. What will the Current Liabilities include?
Ans: We will include the sum for creditors/payables, which in this case is 10,000, under current liabilities.
87. What are the different types of liquidity ratios in accounting?
Ans: In accounting, there are five main sorts of ratios to consider:
Current Ratio
The higher the current ratio of a corporation, the better its ability to deal with short-term financial problems. Current ratio = Current Asset/ Current Liabilities is the formula used to compute it.
Net-Working Capital Ratio
The Net Working Capital Ratio (NWCR) is a measure of how much money a company
It expresses whether or not a business has enough cash on hand to carry out short-term activities. Current Asset – Current Liabilities is how it's computed.
Quick ratio
The quick ratio is also known as the acid test ratio or liquid ratio which illustrates the company’s short-term liquidity to meet any short-term obligations. If the quick ratio is below 1:1, the company is not in a good state to handle short term debts. Quick ratio = Liquid Assets / Current Liabilities
Super-Quick Ratio
Super-Quick Ratio is a term that refers to a ratio that is extremely
(Cash + Marketable Securities) / Current Liabilities = Super Quick Ratio
The operating Cash Flow ratio
The operational Cash Flow ratio is a measure of how well a company is able
It's computed by dividing operating cash flow by current liabilities. It has been found that a good operating cash flow ratio improves a company's liquidity situation.
88. What is the difference between tangible real and intangible real accounts?
Ans:
Tangible Real Accounts - Tangible real accounts are assets that can be touched and have a physical existence.
Machinery a/c, vehicle a/c, and building a/c are just a few examples.
Intangible real account - Intangible real accounts are assets that have monetary values but cannot be touched.
Goodwill, patents, and copyrights are only a few examples.
89. With examples, explain real and nominal accounts.
Ans: A real account is a balance sheet that includes both assets and liabilities. For example, a land account, a construction account, and so on.
An income and expense account is known as a nominal account. For example, a salary account, a wage account, and so on.
90. What is the difference between double-entry and single-entry bookkeeping? What are the rules that govern it?
Ans: Double-entry bookkeeping is an accounting practise that requires each debit to be matched by a credit. As a result, the total debit always equals the entire credit. When one account is debited, another account is credited at the same moment in this arrangement.
91. Explain the procurement process in a few words.
Ans: A purchase request for a specific unit starts the procurement process. The information is then double-checked and approved. For the things already purchased, a buy order is created based on the purchase request. The facilities and administrative team must examine rates, delivery milestones, delivery location, supplier payment terms, contractual duties, and other details before issuing a purchase order to the supplier. The purchase order will be accepted by the vendor.
92. Why are you interested in working for this company?
Ans: Interviewers want to know that you're truly interested in working for their company. Research the company's website to learn more about its aims, mission, and work environment in order to provide a comprehensive response. Choose one or two of your favorite aspects of the company and explain why they make you want to work there.
93. In five years, where do you see yourself?
Ans: It's a question that recruiters ask in various industries, but it's especially relevant in accounting. This is, without a doubt, the ideal opportunity to demonstrate your ambition. As a result, attempt to deliver a modest and honest response in which you emphasize your desire to work for the organization in order to advance your career and act as a pivotal point in your career.
94. Tell us about a time when you were in a tough circumstance and how you dealt with it.
Ans: You are continuously under pressure in the world of accounting and finance. It's not a job to be taken lightly, which is why employers ask such fundamental accounting interview questions to gauge your ability to remain calm under pressure. Don't bring up a particularly stressful event; instead, focus on the job pressure they've encountered on a daily basis, as no one wants to hire someone who can't handle pressure.
Also, keep in mind that the unpleasant circumstance you express is a reality. You don't want to come across as phoney. Employee fraud, enormous damage to the company due to natural calamities, income tax audits for years when you were not even a part of the organization, and so on.
95. Have you ever helped your firm in saving money or effectively utilising their financial resources?
Ans: Explain if you have offered a concept that has had a favourable impact on the company's finances. Tell us how you improved the process and how you arrived at this decision after reviewing past data.
96. How do you reduce your chances of making a mistake at work?
Ans: As an accountant, you'd have to be at the top of your game, because even the tiniest mistake may cause havoc. When answering this question, underline that you are responsible for checking the work numerous times before sending it, and that you have a system of pros and drawbacks that guides your decision-making. Don't be afraid to give an example of a time when you used the double control formula to detect an error.
97. Explain the significance and advantages of maintaining a fixed asset register
Ans: Any investment that generates income is a fixed asset, as you already know. It could be a piece of property, office equipment, or anything similar.
As a result, a fixed asset register aids a business in maintaining correct accounting data for future decision-making.
Apart from that, a fixed asset register can be simply managed with simple spreadsheet software like Microsoft Excel, or it can be quickly linked into real accounting software as the company grows. Even for a small business, it can make calculating annual depreciation easier.
You might also add that in order to avoid compliance-related charges, a corporation should keep an IT asset register.
98. What method would you use to determine the debt-to-equity ratio?
Ans: The debt-to-equity ratio measures the proportion of an organization's debt to its shareholders' equity.
The ideal response is to demonstrate to your potential employer how it is calculated using the following formula:
Debt-to-equity = Total debt/Shareholder’s Equity
You can also state that the higher the ratio, the greater the risk to the organization. This will provide you a competitive advantage.
99. When it comes to working remotely as an accountant, what skills do you think are most important?
Ans: Your soft skills will be determined by your response to this question.
Because the work environment is currently unpredictable, you must emphasize how you can operate productively around this problem.
Adaptability, the ness to take on new problems, and diplomatic teamwork are all desirable qualities for accounting professionals at all levels.
100. Which accounting software do you prefer and why?
Ans: Microsoft Accounting Professional is the best for me since it provides trustworthy and rapid accounting transaction processing, reducing time and enhancing proficiency.
101. What is a bank reconciliation statement, exactly?
Ans: A bank reconciliation statement, often known as a BRS, is a document that allows people to compare their own bank account data to the bank's records. When the passbook balance differs from the cashbook balance, a BRS is generated.
Note: Having learned these questions alone does not necessarily mean passing the interview. These questions were brought to you as a questions that the interviewer is more likely to ask.
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