Q1. Tell me about yourself!

The employer’s intention is none other than to break the ice and get to
know you a little better to steer the conversation in the direction you
want. Without a doubt, this is why it is so important. In your answer,
you must give examples of circumstances and moments in your life that
led you to the accounting field. Were you the treasurer of your soccer
team when you were a child? Have you saved for months to buy a car?
Anything goes to make a positive first impression.

Q2. What are the different types of accounting?

Different types of accounting are –
Financial Accounting – This branch of accounting records, summarises
and reports the business transactions that take place over a time period
in an organisation. It is required in both the private and public sectors.
Administrative Accounting – Administrative accounting is focused on
the administrative aspects of the company and is used above all to
assess the fulfilment of the established objectives and improve the
implemented strategy. It is very useful for making forecasts and
planning the actions and resources to be used.
Tax Accounting -Tax accounting helps to register and prepare reports
related to tax returns to the public treasury and payment of taxes.
Cost Accounting – This type of accounting is more focused on
companies of an industrial nature. It helps to make a detailed analysis of
the unit costs of production, sales, and, in general, the production
process that the company carries out.
Management Accounting – Management accounting has a broader
vision than cost accounting since it records all the economic and
financial information of the company to be able to make short-term and
long-term decisions.

Q3. What are the Golden Rules Of Accounting/Accountancy?

Golden Rules of accounting are –

1. Debit the reciever & Credit the giver

2. Debit what comes in & Credit what goes on
3. Debit expenses & losses, Credit income & gains

Q3. What is GST & Types & Components?

GST is known as the Goods and Services Tax. It is an indirect tax

which has replaced many indirect taxes in India such as the
excise duty, VAT, services tax, etc. The Goods and Service Tax
 Act was passed in the Parliament on 29th March 2017 and came
into effect on 1st July 2017.
In other words,Goods and Service Tax (GST) is levied on the
supply of goods and services. Goods and Services Tax Law in
India is a comprehensive, multi-stage, destination-based
tax that is levied on every value addition. GST is a single
domestic indirect tax law for the entire country.

There are three taxes applicable under this system: CGST,

SGST & IGST.
 CGST: It is the tax collected by the Central Government on an
intra-state sale (e.g., a transaction happening within
Maharashtra)
 SGST: It is the tax collected by the state government on an intra-
state sale (e.g., a transaction happening within Maharashtra)
 IGST: It is a tax collected by the Central Government for an inter-
state sale (e.g., Maharashtra to Tamil Nadu)

Q4. What Is BRS (Bank Reconcilation Statement)?

A bank reconciliation statement is a summary of banking and business

activity that reconciles an entity's bank account with its financial
records.

For reconciling the balances as shown in the Cash Book and passbook a
reconciliation statement is prepared known as Bank Reconciliation
Statement or BRS. In other words, BRS is a statement that is prepared
for reconciling the difference between balances as per the cash book's
bank column and passbook on a given date.
Q5. What is Cash Book, P & L Account & Income,Expenditure
Account?

Cash Book : A cash book is a financial journal that contains all cash
receipts and disbursements, including bank deposits and withdrawals.
Entries in the cash book are then posted into the general ledger.

Profit & Loss Account : Profit and loss (P&L) statement refers to a
financial statement that summarizes the revenues, costs, and expenses
incurred during a specified period, usually a quarter or fiscal year.
These records provide information about a company’s ability or
inability to generate profit by increasing revenue, reducing costs, or
both. P&L statements are often presented on a cash or accrual basis.
Company managers and investors use P&L statements to analyze the
financial health of a company.

Income & Expenditure Account : The income and expenditure account

is prepared by the non-trading entities to determine surplus or deficit of
income over expenditures for a particular time frame. The accumulated
or accrual concept of accounting is rigidly pursued while preparing
income and expenditure a/c of non-trading concerns. It is prepared as a
portion of final accounts of non-trading entities and is equal to the profit
and loss account outlined by for-profit business entities.

Q6. Which accounting platforms have you worked on? Which one
do you prefer the most?
 Describe the accounting platforms (QuickBooks, Microsoft Dynamic
GP, etc.) that you have worked with and which one you liked the most.
Show you have a good understanding of the accounting platform you
use. You can further specify what type of businesses use them.
Generally, small and growing enterprises use the affordable plan of
QuickBooks Online for creating invoices, tracking expenses
and utilising the software’s built-in reports. (Tally, SAP Etc.)

Q7. Deadline at your work?

 Time Management
 Most Important Task Firstly
 Multitasking
 Previous Company Example

Q8. Know Something About Political!

 PM
 CM
 Defence Minister
 Education Minister etc.

Q9. Awarness about your surroundings!

 Hometown
 Nearby Famous Places
 Lifestyle etc.

Q10. How do you maintain accounting accuracy?

 Maintaining the accuracy of an organization’s accounting is an
important activity as it can result in a huge loss. There are various tools
and resources which can be used to limit the potential for errors to creep
in and address them quickly if any errors do arise. My favourite is MS
Excel.
Some of the most common ways of maintaining accuracy in accounting
are:
 Identify revenue streams

 Keep a close eye on invoices and receipts

 Prepare tax returns to avoid penalty

 Prepare financial statements

 Keep tabs on deductible expenses.

Q11. Get Some Knowledge About your recruiting company!

 Like profit & loss of last years

 Growth of the company
 Newly launched products & schemes etc.

Download PDF Now!

Some Other Questions You Have To Read!

Q1. What is working capital?

Ans. Working capital is calculated as current assets minus current
liabilities, which is used in day-to-day trading.
In a simple accounting scheme, the concept of working capital focuses
on the capital resources that a given company can count on in the short
term to operate. These resources owned by the company are the cash,
 the portfolio of financial products, and other investments made by the
company.
Q2. Give a suggestion to improve the company’s working capital
flow.
Ans. In my opinion, the stock on hand can be the key to improving the
working capital of the company. Of all the components of working
capital, the stock is something we can control. We can pressure our
debtors to pay us instantly, but we cannot have direct control over them
because they are separate legal entities and, in the end, they are the ones
who give us business.
We may tend to delay payments from our suppliers, but it ruins business
relationships and hinders goodwill in the industry. Also, if we delay
payments, they may not supply goods in the future. Maintaining
liquidity in the form of funds in the bank can help the flow of working
capital, but it comes at an opportunity cost.
With all of this in mind, I personally believe that inventory management
can be of great help in improving the working capital of the company.
Over-stock should be avoided and stock turnover rates should be high.
This answer is generic. There are industries that work with negative
working capital, such as electronic commerce, telecommunications, etc.
So do some research on working capital before answering.
Q3. Since you mentioned that MS Excel is your favourite, please
give us three cases where Excel will make your life easier.
Mention these three advantages for this common accounting interview
question.
 Excel saves a lot of time. Automating repetitive and predictable tasks

with macros is one example. This allows one to format, filter and
analyse vast sets of data within seconds.
 Excel is highly customisable. Accountants need to create reports with

tables and charts in excel. The same can be re-used for creating other
reports without having to use or create new templates.
 Excel is convenient in comparing financial datasets. It helps one in

tracking financial records and see from which source the cash flow is
generating.
 Q4. What is TDS? Where do you show TDS on a balance sheet?
Ans. TDS (Tax Deducted at Source) is a concept aimed at collecting tax
at every source of income. In a balance sheet, it is shown in the assets
section, right after the head current asset.
Q5. What is the difference between a trial balance and a balance
sheet?
Ans. This is a basic accounting interview question. For the answer,
mention that a trial balance is the list of all balances in a ledger account
and is used to check the arithmetical accuracy in recording and posting.
A balance sheet, on the other hand, is a statement that shows the assets,
liabilities, and equity of a company and is used to ascertain its financial
position on a particular date.
Q6. Is it possible for a company to show positive cash flows and still
be in grave trouble?
Ans. Yes, if it shows an unsustainable improvement in working capital
and involves a lack of revenue going forward in the pipeline.
Q7. What are the common mistakes in accounting?
Ans. This is one of the most frequently asked accounting interview
questions.
The most common mistakes in accounting are –
 Mixing personal accounts with that of the company

 Little communication between the company and the accountant

 Not keeping a backup

 Misallocated resources

 Not saving the receipts

 Performing manual accounting

 Not keeping the accounting books up to date

Q8. What is the difference between inactive and dormant accounts?

Ans. Inactive accounts are which are closed and will not be used in the
future. Dormant accounts are not currently functional but may be used
in the future.
Q9. Are you familiar with the Accounting Standards? How many
accounting standards are there in India? [Frequently asked
accounting interview question]
Ans. Even if you’ve never worked as an accountant before, it is
essential that you show knowledge of International Accounting
Standards. Although it is true that this is such an extensive subject that it
is impossible to know it by heart, before the interview you should have
studied the most recent changes to be prepared to talk about them.
There are currently 41 Accounting Standards that are usually issued by
the International Accounting Standards Board (IASB).
Q10. Why do you think Accounting Standards are mandatory?
Ans. Accounting Standards play an important role in preparing a good
and accurate financial report. It ensures reliability and relevance in
financial reports.
Every organisation’s financial documents are created as per Accounting
Standards. The uniformity allows one to compare its market position
against others who follow the same mandatory principles. As a common
methodology exists, there remains no room for misrepresentation.
Q11. If our organization has three bank accounts for processing
payments, what is the minimum number of ledgers it needs?
Ans.Three ledgers for each account for proper accounting and
reconciliation processes.
Q12. What are some of the ways to estimate bad debts?
Ans. Some of the popular ways of estimating bad debts are – the
percentage of outstanding accounts, aging analysis, and percentage of
credit sales.
Q13. What is deferred tax liability?
Ans. Deferred tax liability signifies that a company may pay more tax in
the future due to current transactions.
Q14. What is a deferred tax asset and how is the value created?
Ans. A deferred tax asset is when the tax amount has been paid or has
been carried forward but has still not been recognized in the income
statement. The value is created by taking the difference between the
book income and the taxable income.
Q15. What is the equation for Acid-Test Ratio in accounting?
Ans. The equation for Acid-Test Ratio in accounting
Acid-Test Ratio = (Current assets – Inventory) / Current Liabilities
Q16. Name some popular accounting applications.
Ans. I am familiar with accounting apps like CGram Software,
Financial Force, Microsoft Accounting Professional, Microsoft
Dynamics AX, and Microsoft Small Business Financials.
Q17. Which accounting application do you like the most and why?
Ans. I find Microsoft Accounting Professional the best as it offers
reliable and fast processing of accounting transactions, thereby saving
time and increasing proficiency.
Q18. What is a bank reconciliation statement?
Ans. A bank reconciliation statement or BRS is a form that allows
individuals to compare their personal bank account records to that of the
bank. BRS is prepared when the passbook balance differs from the
cashbook balance
Q19. What is tally accounting?
Ans. It is accounting software used by small businesses and shops to
manage routine accounting transactions. It is a popular accounting
software created by Tally Solutions. It is used for all kinds of
accounting-related activities including recording of financial
transactions, generating statements of liabilities and assets, and other
analytical purposes.
Q20. What are fictitious assets?
Ans. Fictitious assets are intangible assets and their benefit is derived
over a longer period, for example, goodwill, rights, deferred revenue
expenditure, miscellaneous expenses, preliminary expenses, and
accumulated loss, among others.
To excel in the accounting interview round, you may also consider
taking up courses in the following subjects:
• IFRS Courses
• GAAP Courses
• ACCA Courses
Q21. Can you explain the basic accounting equation?
Ans. Yes, since we know that accounting is all about assets, liabilities,
and capital. Hence, its equation can be summarized as:
Assets = Liabilities + Owners Equity.
Q22. What is CMM?
Ans. Capability Maturity Model (CMM) is a document that provides a
model and six elements of infrastructure used for measuring the
effectiveness and capability of an organization’s finance process.
Q23. What is the meaning of purchase return in accounting?
Ans. As the name suggests, a purchase return is a transaction where the
buyer of merchandise, inventory or fixed assets returns these defective
or unsatisfactory products back to the seller.
Q24. What is retail banking?
Ans. Retail banking or consumer banking involves a retail client, where
individual customers use local branches of larger commercial banks.
Q25. What is offset accounting?
Ans. Offset accounting is the process of cancelling an accounting entry
with an equal but opposite entry. It decreases the net amount of another
account to create a net balance.
Q26. What are the trade bills?
Ans. These are the bills generated against each transaction. It is a part of
the documentation procedure for all types of transactions.
Q27. What is fair value accounting?
Ans. As per fair value accounting, a company has to show the value of
all of its assets in terms of price on the balance sheet on which that asset
can be sold. Do elaborate on the answer to this accounting interview
question.
Q28. What happens to the cash, which is collected from the
customers but not recorded as revenue?
Ans. It goes into “Deferred Revenue” on the balance sheet as a liability
if no revenue has been earned yet.
Q29. How important is documentation when it comes to
accounting?
Ans. I believe that the accounting team of any company has a
responsibility to present a true and fair view to the shareholders and
management of the company. The accounting team is like the watchdog
of the organization.
That is why documentation becomes very important in accounting.
Appropriate documentation must be verified so that an adequate audit
trail is maintained and justified when necessary.
 Q30. What is an MIS report, have you prepared any?
Ans. Yes, I have prepared MIS reports. It is an acronym for
Management Information System, and this report is generated to
identify the efficiency of any department of a company.
Q31. What do you mean by the company’s payable cycle?
Ans. It is the time required by the company to pay all its account
payables.
Q32. What is Scrap Value in accounting?
Ans. Scrap Value is the residual value of an asset that any asset holds
after its estimated lifetime.
Q33. Which account is responsible for interest payable?
Ans. The current liability account is responsible for interest payable.
Q34. What is the departmental accounting system?
Ans. It is a type of accounting information system that records all the
financial information and activities of the department. This financial
information can be used to check the profitability and efficiency of
every department.
Q35. What is a perpetual inventory system?
Ans. Perpetual inventory is a methodology that involves recording the
sale or purchase of inventory immediately using enterprise asset
management software and computerized point-of-sale systems.
Q36. What do you mean when you say that you have negative
working capital?
Ans. When a company’s current liabilities exceed its current assets, it is
named negative working capital. It is a common terminology in certain
industries like retail and restaurant businesses.
Q37. What are the major constraints that can hamper relevant and
reliable financial statements?
Ans. Here are some of the major constraints:
 Delay, which leads to irrelevant information

 No balance between costs and benefits

 No balance between the qualitative characteristics

 No clarity in true and fair view presentation

Support this accounting interview question with relevant examples.

Explore More – What is Corporate Finance?
 Q38. Tell me the golden rules of accounting, just mention the
statements.
Ans. This accounting interview question tests your professional view of
the subject. You can mention by elaborating this accounting interview
answer on the three golden rules of accounting.
 Debit the receiver, credit the giver

 Debit what comes in, credit what goes out

 Debit all expenses and losses, credit all incomes and gains

Q39. Please elaborate on what this statement means – “Debit the

Receiver, Credit the Giver”.
Ans. So, this is among the most frequently asked accounting interview
questions. Your reply should be –
This principle is used in the case of personal accounts. If a person is
giving any amount either in cash or by cheque to an organization, it
becomes an inflow and thus that person must be credited in the books of
accounts. Therefore, when an organization received the money or
cheque, it needs to credit the person who is paying and debit the
organization.
Q40. Any idea what is ICAI?
Ans. Of course, it is the abbreviation of the Institute of Chartered
Accountants in India.
Read More – What is Investment Banking?
Q41. Give some examples of fixed assets that you record in the
balance sheet?
Ans. To answer this accounting interview question, you need to specify
your understanding of the concept. Before jumping straight to the
answer, you may want to define fixed assets first. A brief intro such as –
fixed assets are those which are not consumed in one fiscal year, will
ensure the recruiter that you mean these are long-term assets. You can
further mention that these assets are recorded in the asset section of the
balance sheet.
Some typical examples of fixed assets are automobiles, furniture, office,
or any equipment an organisation requires.
Q42. What is Executive Accounting?
Ans. Executive Accounting is specifically designed for service-based
businesses. This term is popular in finance, advertising, and public
relations businesses.
Q43. What are the bills receivable?
Ans. Bills receivable are the proceeds or payments, which a merchant or
a company will be receiving from its customers.
When replying to accounting interview questions, be very specific,
and don’t talk about generic stuff.
Q44. Define Balancing.
Ans. Balancing means equating or balancing both the debit and credit
sides of a T-account.