1000+ Accountant Interview Questions and Answers

Answering questions related to T codes, credit notes, PO and invoice mismatch, and process improvement for Accountant role.

• T codes for PRPO routed invoices: XXXX

• T code for manually processing invoice: XXXX

• T code for credit note: XXXX

• Credit note is issued for various reasons such as return of goods, overpayment, etc.

• PO and invoice mismatch can occur due to incorrect pricing, quantity, or item description.

• Process improvement can be achieved by implementing automation, streamlin...read more

The journal made when a purchase requisition is created is the Purchase Requisition Journal.

• The Purchase Requisition Journal is used to record the details of purchase requisitions.

• It includes information such as the date, description, quantity, and cost of the requested items.

• The journal entry debits the appropriate expense or asset account and credits the accounts payable or inventory account.

• The Purchase Requisition Journal helps in tracking and controlling the purchasing p...read more

Yes, employees can get transfers to other countries like foreign and gulf.

• Employees can be transferred to other countries if there is a need for their expertise or if there are job opportunities available.

• Transfers to foreign countries may require additional documentation and visa processes.

• Gulf countries often have a high demand for skilled professionals, making transfers more likely.

• The decision to transfer an employee depends on the company's policies, the employee's quali...read more

A hard worker puts in a lot of effort but may not prioritize tasks effectively, while a smart worker manages time efficiently and produces quality output.

• Hard workers focus on putting in a lot of effort and may work long hours.

• Smart workers prioritize tasks and manage their time effectively.

• Hard workers may not always consider the most efficient ways to complete tasks.

• Smart workers find ways to work smarter, not harder, by utilizing their skills and resources effectively.

• Hard...read more

An accountant is a professional who manages financial records and prepares financial reports. There are basic rules of accounting.

• Accountants manage financial records and prepare financial reports

• Basic rules of accounting include the accounting equation, double-entry accounting, and the matching principle

• Accountants must follow generally accepted accounting principles (GAAP) and maintain ethical standards

• Examples of accounting tasks include bookkeeping, tax preparation, and f...read more

To solve the problem of employees having different solutions, it is important to encourage open communication, facilitate collaboration, and consider all perspectives.

• Encourage open communication among employees to understand their different solutions

• Facilitate collaboration by organizing team meetings or brainstorming sessions

• Consider all perspectives and evaluate the pros and cons of each solution

• Seek consensus or compromise to find a solution that satisfies everyone

• Impleme...read more

Record to report process involves invoice processing, journal voucher creation, and petty cash management.

• Invoice processing involves receiving and verifying invoices, coding them, and entering them into the system.

• Journal voucher creation involves recording financial transactions in the general ledger.

• Petty cash management involves maintaining a small amount of cash for minor expenses.

• All these processes are part of the record to report cycle, which is the process of recordi...read more

Capital transactions involve long-term investments while revenue transactions involve short-term gains.

• Capital transactions involve the purchase or sale of long-term assets such as property, plant, and equipment.

• Revenue transactions involve the sale of goods or services in the normal course of business.

• Capital transactions affect the balance sheet while revenue transactions affect the income statement.

• Examples of capital transactions include the purchase of a building or mach...read more

A balance sheet can be prepared using the trial balance by categorizing accounts into assets, liabilities, and equity.

• Identify and list all the asset accounts from the trial balance.

• Identify and list all the liability accounts from the trial balance.

• Identify and list all the equity accounts from the trial balance.

• Calculate the total of assets, liabilities, and equity separately.

• Arrange the accounts in the balance sheet format: Assets = Liabilities + Equity.

• Include additional ...read more

Yes, there is an entry for purchase sales.

• The entry for purchase sales is a double-entry accounting system.

• The purchase is recorded as a debit to the inventory account and a credit to the accounts payable account.

• The sale is recorded as a credit to the sales account and a debit to the accounts receivable account.

• The cost of goods sold is recorded as a debit to the cost of goods sold account and a credit to the inventory account.

• Examples include recording the purchase of inven...read more

Use a max heap to keep track of the K largest elements in a continuous stream of integers.

• Create a max heap of size K to store the K largest elements.

• For each new element in the stream, compare it with the root of the max heap. If it is larger, replace the root with the new element and heapify.

• At any point, the root of the max heap will be the Kth largest element in the stream.

Yes, I can independently manage the organization's books, ensuring accuracy and compliance with accounting standards.

• I have experience with accounting software like QuickBooks and SAP, which allows me to efficiently manage financial records.

• I can prepare financial statements, including balance sheets and income statements, ensuring they reflect the organization's financial position accurately.

• I am skilled in reconciling bank statements and resolving discrepancies, which is cr...read more

I aim to secure a position in a reputable company to enhance my skills, gain knowledge, and grow into a responsible professional.

• Focus on continuous learning: Attend workshops and training sessions to stay updated with industry trends.

• Seek mentorship: Connect with experienced colleagues to gain insights and guidance for career growth.

• Set clear goals: Define short-term and long-term objectives to track progress and stay motivated.

• Embrace challenges: Take on new responsibilitie...read more

As an experienced accountant, I can relate my skills to Akash's financial management despite the absence of traditional entries.

• Understanding of financial principles: I can apply my knowledge of accounting principles to analyze financial data.

• Use of software tools: Familiarity with accounting software allows me to manage finances effectively, even without traditional entries.

• Financial reporting: I can prepare financial statements and reports based on available data, ensuring ...read more

Assets and liabilities are recorded in the books of accounts to track the financial position of a company.

• Assets are resources owned by a company that have economic value, such as cash, inventory, or property.

• Liabilities are obligations or debts that a company owes to external parties, such as loans or accounts payable.

• Recording assets and liabilities helps in determining the financial health and net worth of a company.

• Assets are typically recorded on the debit side of the ba...read more

Purchase order comes first before GRN.

• A purchase order is a document issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services.

• A goods receipt note (GRN) is a document used to record the receipt of goods from a supplier.

• A purchase order is typically created and sent to the supplier before the goods are received and a GRN is generated.

• The purchase order serves as a formal request for the supplier to deliver the specified goods ...read more

A ledger is a book or computer program used to record financial transactions. There are two types of ledgers: general and subsidiary.

• A ledger is used to keep track of financial transactions.

• It can be in the form of a physical book or a computer program.

• There are two types of ledgers: general and subsidiary.

• The general ledger contains all the financial transactions of a company.

• The subsidiary ledger contains specific accounts, such as accounts receivable or accounts payable.

I would give a number of 8 for my Accounts knowledge.

• I have a strong understanding of financial statements and bookkeeping principles.

• I am proficient in using accounting software and tools.

• I have experience in preparing and analyzing budgets and financial reports.

• I am knowledgeable about tax regulations and compliance.

• I have successfully handled complex financial transactions and reconciliations.

Profit and loss account is a financial statement that shows a company's revenues, expenses, and net income or loss for a specific period.

• It is also known as income statement or statement of operations.

• It shows the company's financial performance over a specific period of time.

• Revenues are the income generated by the company, while expenses are the costs incurred to generate that income.

• Net income or loss is the difference between revenues and expenses.

• It helps in evaluating t...read more

Answering questions related to accounting concepts and software

• Accruals are expenses incurred but not yet paid, while prepaids are payments made in advance for future expenses

• Differed revenue is revenue received but not yet earned, while invoice is a bill for goods or services provided

• Credit note is a document issued to reduce the amount owed by a customer

• SAP T-codes are transaction codes used in SAP software to perform specific tasks

• Excel formulas are used to perform calcula...read more

The income tax slab rates vary based on the individual's or company's income level.

• Income tax slab rates differ for individuals, companies, and organizations.

• The rates are determined based on the income level of the taxpayer.

• Different countries have different income tax slab rates.

• Tax rates may vary for different income brackets.

• Tax rates can change over time due to government policies and reforms.

A computer is an electronic device that can perform various tasks by executing a set of instructions.

• Computer stands for 'Common Operating Machine Particularly Used for Technical and Educational Research'.

• It is a programmable machine that can store, retrieve, and process data.

• Computers can perform complex calculations, store large amounts of information, and communicate with other computers.

• Examples of computers include desktops, laptops, tablets, and smartphones.

The t code to post the receipt of goods is MIGO.

• The t code MIGO is used in SAP to post the receipt of goods.

• MIGO stands for Material Document Goods Movement.

• It is used to record the receipt of goods into inventory.

• The t code allows users to enter details such as the material, quantity, and storage location.

• It also provides options to specify the vendor, purchase order, and other relevant information.

• MIGO is commonly used in procurement and inventory management processes.

Accountancy is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.

• It involves keeping track of financial transactions such as sales, purchases, and payments

• It includes preparing financial statements such as balance sheets and income statements

• It helps businesses make informed decisions based on financial data

• Examples of accountants include auditors, tax accountants, and management ac...read more

CMMI is a process improvement model. Sweep account is a bank account. Marginal cost is the cost of producing one additional unit. Expense is a cost incurred in the normal course of business. Expenditure is a payment made for goods or services.

• CMMI stands for Capability Maturity Model Integration and is a process improvement model used in software development.

• Sweep account is a bank account that automatically transfers funds from a checking account to an interest-earning accou...read more

Hard working is putting in a lot of effort and time, while smart working is finding efficient ways to achieve goals.

• Hard working involves dedicating long hours and putting in a lot of effort.

• Smart working involves finding innovative and efficient ways to complete tasks.

• Hard working may lead to burnout if not balanced with smart working.

• Smart working focuses on prioritizing tasks and utilizing resources effectively.

• Hard working may involve working late hours or taking on exces...read more

There are several types of derivatives in the capital market.

• Futures contracts

• Options contracts

• Swaps

• Forwards contracts

• Index-based derivatives

• Commodity derivatives

• Currency derivatives

• Interest rate derivatives