300+ TOP Accounts Interview Questions and Answers

Q1. What Is The Difference Between Consignor And Consignee?

Consignor is the person who is the owner of the goods and who deliver the goods to the consignee. Consignee is the person who receives the goods and he just possesses the goods and not the owner.

Q2. What Are Examples Of Deferred Revenue Expenditure?

It is an expenditure the benefit of which will be realised over a period and not during the current period.Ex-Heavy Advertisement expenditure incurred by the company for promoting the product.The benefits of this huge expenditure will be realised over the period and not in the same period when it is incurred.

Q3. What Is Cmmi?

Capability Maturity Model Integration (CMMI) is a process improvement approach that provides organizations with the essential elements of effective processes. It can be used to guide process improvement across a project, a division, or an entire organization. CMMI helps integrate traditionally separate organizational functions, set process improvement goals and priorities, provide guidance for quality processes, and provide a point of reference for appraising current processes.

Q4. What Do You Think Is Challenging In Marketing?

Be prepared with concepts that you feel is most challenging in marketing. Understand the risks and challenges of the new market developments.

Q5. Explain Why Is Capital Amount Put In Liabilities And Not In Assets?

One of the basic convention in accounting is separate legal entity.It me the business is different from those who manage it.When i contribute capital in to my business,it is liability to my business to repay it to me.

Q6. Tell Me About Your Experience In Cost Accounting?

Referring any books or questions wont give any experience, here experience, i think me, the level or the grade of Cost A/C works done etc.

Q7. What Is The Meaning Of Non Performing Assets?

A non performing asset is one which does not earn any income. For example you have built a house consisting of 3 floors and the whole building is occupied by your family member and does not earn any rent, then this is called as a non performing asset. A non performing asset is a type of asset which does not earn any income and these asset unable to cover up the investment put into it to hold. If dues in the form of intrest and principle are not paid by borrower for the period of 90 days then the assets is called as N.P.A.

Q8. What Are The Steps To Take Before You Approve An Invoice For Payment?

Show your understanding of the invoice verification process. Go through each step in detail such as checking that goods have been received in proper condition or services rendered in a satisfactory manner. Explain the importance of each step.

Q9. What Are The Basic Principles Of An Internal Audit Controlsystem?

The basic principles of financial internal control are explained below:Financial and accounting operations must be separated that is the handling of cash and the recording of the movement thereof should be done by different persons. Responsibility for the performance of the job must be clearly stated so that there may be no room for doubt or confusion subsequently. Too much confidence should not be pinned in one individual. Nearly all frauds have been committed by trusted officials or employees. It is interesting to note that frauds have occurred owing to their being trusted. Relation principle relating to trfer of an employee from one job to another should be the inflexible guiding rule. This is an effective safeguard against collusion and is recognized as an important canon of sound organization. Mechanization of the work wherever feasible and practicable should be resorted to, mechanical devices such as cash register, recording time clocks, calculation machines should be introduced. A system of control accounts should elegantly be fitted in the book keeping system. The work should be so arranged that work done by one employee should be properly checked by independent employee. Such continuous and constant checking goods moral control and the errors and the frauds cannot go undetected.

Q10. Explain The Information About Cost Sheets?

Cost sheet consists of the direct and indirect expenses incurred in producing a given product and classifying the expenses incurred according to office, administration, selling and distribution overheads.

Q11. How To Define Inter Company Traction In Account Receivable?

Before wering the above question let us first understand the meaning of Intercompany tractions. Intercompany tractions are those tractions that takes place between two or more entities of the same group of company. So the receivable of one entity would the payable of another entity. All intercompany tractions are eliminated befor preparing the final Balance sheet of the group company.

Q12. Describe The Advantages And Disadvantages Of The Different Accounting Packages/ Systems You Have Used Recently In Your Accountant Jobs?

Focus on how the packages supported and simplified company specific processes, and how they met your exact business requirements. Display your knowledge of how the packages differ in areas such as price, complexity and functionality.

Q13. What Is Accounting Traction?

A traction is an execution of a user program and is seen by the DBMS as a series or list of actions. The actions that can be executed by a traction include the reading and writing of database.

Q14. What Is The Cost Sheet?

Cost sheet is a statement of cost for a product for given period of time.

Q15. What Is Fbt (fringe Benefit Tax)?

The tax payable on a non-salary benefit provided to an employee or an associate of the employee. The employer is liable to pay any FBT and may choose to recover the FBT amount from the employee.

Q16. What Software Applications Have Your Used For Accounts Receivable?

List the applications you have used and expand on the value of the solutions they offered to your particular company. Look at aspects such as tracking tractions, assessing late payments, creating past due notices and printing out relevant reports.

Q17. What Do You Consider To Be The Biggest Challenge Facing The Accounting Profession Today?

A sample wer to accounting interview questions like this is: In response to the changing market accountancy professionals have to provide more management and consulting services, in addition to financial management. They have to assume a greater advisory role and develop more complex and flexible accounting systems. Then continue to explain how you can meet this challenge.

Q18. How Is A Po (purchase Order Created)?

A document or form used by a customer to issue an order for goods or services. 1.Procure to pay cycle with accounting entries 2.order to cash 3.record to report 4.Sox

Q19. What Is Accounting Management?

Accounting Management (Business) is the practical application of management techniques to control and report on the financial health of the organization. This involves the analysis, planning, implementation, and control of programs designed to provide financial data reporting for managerial decision-making. This includes the maintenance of bank accounts, developing financial statements, cash flow, and financial performance analysis. Accounting management is a mandatory knowledge module of any MBA program. Accounting (IT) management: Accounting is often referred to as billing management. The goal is to gather usage statistics for users. Using the statistics the users can be billed and usage quota can be enforced. Examples: * Disk usage * Link utilization * CPU time.

Q20. What Is The Difference Between Finance And Accounts? Most Of The Companies Having A Different Section Like Finance And Accounts. Why They Are Not Had Only Single Section Neither Finance Nor Accounts?

Finance:It is the branch of economics that studies the management of money and other assets.In simpler terms it can be defined as the commercial activity of providing funds and capital.It addresses questions like — what funds are required by the org? How they can be raised? How they have to be allocated etc. Accounts: It is the occupation of maintaining and auditing records and preparing financial reports for a business. Accounts provides quantitative information about finances. It addresses issues like what amount of funds have been allocated to various activities how the book-keeping is being done etc. Both functions are distinct but complimentary to each other. Finance and accounts are highly specilized and distinct areas and hence most organizations have seperate sections of finance and accounts.

Q21. After Run Depreciation I Have Forget Calculate Depreciation Of One Asset Then How To Calculate Depreciation Of That Asset?

If u forgot depreciation we have to follow the preliminary principal of the depreciation. That is value of asset/life time of asset*100.

Q22. What Is A Ledger In Regards To Accounting?

It is a complete set of accounts for a business entity.

Q23. What Is Normative Accounting?

Normative Theory is a theory that prescribes how a process of accounting should be done. This theory is not based on observation and may suggest radical changes to current practices in accounting.

Q24. What Is Accounting Ethics?

Accounting ethics is primarily a field of applied ethics, the study of moral values and judgments as they apply to accountancy. It is an example of professional ethics.

Q25. What Other Careers Are You Considering?

The obvious wer would be careers in banking and insurance and other finance areas, but it is OK to mention any career here as long as you can argue your case effectively e.g. by demonstrating that the skills required are similar to those of an accountant. Interviewers will be looking for evidence that you have analyzed your skills and interests in a logical manner when coming to a career decision, and also for signs of your commitment to accountancy. However, in an interview you do not HAVE to tell the truth, the whole truth and nothing but the truth. If you admit to also applying for highly-competitive areas such as journalism or the Diplomatic Service, the interviewer is likely to assume that accountancy is your second choice. Similarly, you might find the interviewer challenging your interest in business if you said that social work or nursing was also an option.

Q26. To What Extent Were You Involved In Collections?

Collection involves calling the customers for past due and this kind of question has to logically wered.

Q27. What Is An Accounting Traction?

An accounting traction is the exchange of request/response messages to perform accounting. Accounting can be performed in the form of accounting tractions that report on resource usage by a session. Accounting traction can occur during a session if accounting or charging indications are needed [p&l based acct] or only at the start and the end of the session.

Q28. What Are The Various Me Of Calculating Depreciation?

@Double declining method @Units of production method @Straight-line method @Sum of year digit method Depreciation Fund Method Insurance Method Annuty Method.

Q29. Explain Different Functions Of Internal Audit?

The function of internal audit is concerned with analysis of internal check. The internal audit can look into the duties of each employee. All employees are provided jobs on the basis of their abilities. The auditor can test the effectiveness of internal check. The function of internal audit is examining the application of legal requirements. The accounts are prepared under certain legal frame work. Verification of accuracy is a function of internal audit. The accuracy of accounting books and records can be verified with the help auditing techniques. The audit techniques include inspection, observation, inquiry, confirmation, computation and review. An auditor can check the accuracy through these techniques. Confirmation of liability is a function of internal auditor can determine the work done by every person. The carelessness or negligence on the part of worker is noted. The concerned person is given a chance to explain his position. If the reason is not justified, the liability is confirmed. The function of internal audit is to examine the assets protection. The proper record is to be maintained. The possession must be in the hands of senior officer. The assets are used for business only. There are proper purchase and disposal of these assets. The internal auditor can check that assets are protected.

Q30. What Is The Difference Of Cost Accounting And Financial Accounting?

Financial accounting encompasses all account presented on the face of the financial statement, its presentation, recognition, measurement and disclosures. Where as cost accounting is only focused on the cost of inventory.

Q31. Describe Some Of The Methods Used To Allocate Support Costs?

Headcount or number of pc’s per cost centre.

Q32. Is An “account Receivable” And “goodwill” Real Accounts In Accounting?

Real accounts, i.e. Balance Sheet accounts are ongoing perpetual records and represent “real” items; cash, receivables, inventories, accounts payable, invested capital, etc., etc. Accounts receivable and goodwill therefore are both real accounts as they have value in and of themselves. Nominal accounts represent items of income and expense. Nominal accounts have no balances at the beginning of an accounting period and change as various debits and credits are applied because of activity of income and expense throughout the accounting period. At the end of the accounting cycle, the nominal accounts are returned to zero by debiting them by an amount equal to their credit balance if such exists, or crediting an account if it has a debit balance. The offsetting entry of each of these is to a Profit or Loss Account. If after all accounts are zero, the P&L account has a debit balance then operations were profitable (income exceeded expenses), and conversely with a credit balance a loss was incurred. The P&L is then “closed” by either debited or crediting to bring it to zero, whichever is appropriate, with the offsetting entry going to “Retained Earnings”, a real account, and bringing the Balance Sheet into balance and leaving all nominal accounts at zero.

Q33. Were You Happy With The Grades You Achieved At A-level?

Chartered Accountancy firms put a lot of weight on A-level grades as these have been found to be the best predictors of success in professional examinations. If your A levels were not outstanding, this may sometimes depend more on the quality of the school you attended than your ability. In some inner-city schools it may be that a mediocre A-level performance that you achieved might have been the best in your school – if this is so, then make it clear. An average performance at a weak school academically may be the equivalent of a much better performance at some prestigious establishments. Similarly, if there were any other external factors, such as illness, that may have affected your grades, tell the interviewers – but don’t sound as though you are making excuses.

Q34. What Does The Abbreviation M Mean In Accounting?

It has come to mean one million in general usage, although it used to mean one thousand (and one million was abbreviated “MM”)

Q35. What Is The Difference Between Cost Accounting Management Accounting And Financial Accounting?

For simplistic purposes, there is not much, if any, difference between “cost accounting” and “management accounting”. These terms refer to the accounting techniques used internally by a company’s management to determine the costs of running the business and help in decision making. For example, reports that compare budgeted to actual expenses are commonly used to monitor the successful management of a specific department or store within a larger enterprise. Financial Accounting refers to accounting practices that result in financial statements used by various stakeholders of the business. Stakeholders may include management and employees, as well as vendors, suppliers, customers, bankers and regulators. The accounting practices used in compiling financial statements are referred to as “GAAP” or the generally accepted accounting principles as set forth by the Financial Accounting Standards Board in the U.S. In the U.S., external financial reports issued by public and/or regulated companies must comply with GAAP. Some accounting methods used in cost accounting are not recognized by GAAP and therefore can only be used internally.

Q36. What Is Total Flow Of Account Receivables?

Flow of Accounts receivable should be in proportion to Accounts payable i.e. in terms of ration 2:1

Q37. How To Define Payroll?

Payroll me processing a salary for salaried employee. There should be relation of “contract of service”.

Q38. What Is Your Greatest Achievement And Why?

Before your interview think through everything you have done in the last five years and try to find at least one example which fits each of these situations. Don’t worry if your examples are not earth-shattering, as long as they give some evidence for possessing the quality in question. You can wer these questions by first describing the SITUATION and/or TASK you had to achieve, then the ACTION you took in the situation and finally the RESULT or outcome. Some interviews consist almost entirely of these types of questions, in which case the order of the interview is set in advance with a standard list of questions. Even more so than usual wer questions honestly – honesty is essential in the job!

Q39. What Are The Items That Are To Be Debited In Accounting And What Are The Items That Are To Be Credited In Accounting?

This depends on the nature of the account and the thing you wish to achieve. For example, to increase cash you would debit the cash account, but if you wanted to decrease it, you would credit it. There are all sorts of accounts and they have different normal balances. The thing to remember is that every journal entry must have equal debits and credits. So for example to increase a contra asset account like Allowance for Doubtful debts you would credit Bad Debt Expense to increase it and credit Allowance to increase that!

Q40. What Report Are Provided To Accounting Dept. From Payroll Every Month? What Reports Are Generate At End Month, Qtr & Year End In Payroll Dept?

When preparing the payroll every month the accounts dept should be provided with the information such as status of the employee as if he is a permanent or on contract or in probation attendance and if there are any bonus to be given to the employee.

Q41. Explain The Accounts Payable Cycle?

Demonstrate your knowledge of this cycle – the length of time it takes the company to pay its accounts payable – and what the implications of the length of this cycle are for the company, for example cash flow.

Q42. Sell This Pencil To Me?

You should be quick in trying to get the right USP for the product and sell efficiently.

Q43. How To Involve People In Audit?

Use audits as opportunities to train others. Ask for a volunteer (who is not an auditor) to walk through the audit process with you as an assistant. This will provide others with a better understanding of what audits are and why they are necessary. Invite all the auditees to the closing meeting. Having been an auditee, I know it helps to hear audit findings firsthand, the positive as well as the negative. Involving people creates a feeling that everyone is a vital contributor to the goal of the company – compliance.

Q44. What Information Do You Require Before You Approve An Invoice For Payment?

Focus on your monitoring and checking skills. Demonstrate your understanding of the documentation required for verification before payment is made.

Q45. What Are The Different Branches Of Accounting?

Following are different branches of accounting: Cost Accounting Financial Accounting Management Accounting

Q46. What Are The 4 Phases Accounting?

@Recording @Classifying @Summarizing @Interpreting.

Q47. What Do You Like And Dislike About The Sales Process?

This question is asked to explore the candidate’s self-awareness and motivation. Know your strengths in the sales process as these will trlate into what you like. Your “likes” and strengths should correspond to the main priorities of this sales position. For example, if your strength is negotiating, describe how you enjoy this aspect of sales and your satisfaction at coming up with win-win solutions. Highlight how this has resulted in both satisfied customers and increased sales which is what this position is looking for. When responding to the “dislikes” go carefully! The best approach is to choose a characteristic of your present or previous company such as its poor delivery on the sales you made or its lack of flexibility when it came to negotiating sales solutions. Answer in a positive manner as someone who is able to take these sort of problems in their stride and constructively improve on them. For example if the delivery of company products was slow and resulted in angry customers, discuss how you instituted a follow-up process that accelerated delivery.

Q48. How Much Time Needs To Pass For An A/r Account To Be Considered Delinquent?

After 90 days of the due date.

Q49. What Is The Difference Between The Accrual Accounting And Cash Accounting?

The Cash Basis of accounting reports only tractions that have been completed in the current reporting period – or – what has “hit” the checking account (assuming all funds are deposited and disbursed only from that account) – The Accrual Basis of accounting reports all tractions that the entity has entered into and includes the asset, liability, income and expense related them. In addition, the Cash Basis of accounting is considered OCBOA (Other Comprehensive Basis of Accounting ~ Other than GAAP) and the Accrual Basis (when implemented properly and fully) is considered GAAP (Generally Accepted Accounting Principles). EDIT – The Accrual Basis is more desirable from a user’s standpoint as it includes tractions that may exist were completed after the report dates that were initiated prior to the report date. It is generally more complete and more reliable than the cash basis – however, that does assume that the person preparing the statements has expertise of, not simply a cursory working knowledge of, GAAP and the accrual basis. For example, a set of financial statements printed out of QuickBooks are not necessarily GAAP compliant (or correct) although they may appear to be at first glance or to a layperson.

Q50. Have You Ever Been Involved In An Invoice Dispute? How Did You Manage The Problem?

Accounting job interview questions like this explore your conflict management skills. Emphasize your interpersonal skills, your maturity and your ability to stay calm in the face of difficulty. Describe the techniques you use to diffuse disputes such as asking questions to determine the reason for the dispute, not conveying blame and not becoming too emotional. Demonstrate your ability to work together with others to reach an acceptable resolution.