100+ Accountant Interview Questions and Answers for Freshers

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

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

TDS stands for Tax Deducted at Source. It is a tax collection mechanism in India.

• TDS is deducted by the payer while making certain payments like salary, rent, interest, etc.

• It is deducted at a specified rate and deposited with the government.

• TDS is reflected in the balance sheet as a liability under the head 'TDS Payable'.

• The amount of TDS deducted is shown as a reduction in the respective expense or income in the profit and loss statement.

• The TDS liability is adjusted agains...read more

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.

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

Depreciation is the decrease in value of an asset over time. Fixed assets are long-term assets that are not easily converted to cash. Capital gains are profits from the sale of an asset.

• Depreciation is the allocation of the cost of an asset over its useful life

• Fixed assets are tangible assets that are expected to provide economic benefits for more than one year

• Examples of fixed assets include buildings, machinery, and vehicles

• Capital gains are the profits earned from the sale...read more

Ledger is a book of accounts where transactions are recorded, while Trial Balance is a statement that shows the balances of all ledger accounts.

• Ledger is a primary book of accounts where all transactions are recorded chronologically.

• Trial Balance is a statement that shows the balances of all ledger accounts at a particular point in time.

• Ledger is used to prepare Trial Balance.

• Ledger contains all the details of transactions, while Trial Balance only shows the balances.

• Errors i...read more

Discount received is the reduction in the price of goods or services offered by a seller to a buyer as an incentive for early payment or bulk purchase.

• Discount received is a contra revenue account and is shown on the income statement as a deduction from sales revenue.

• It is recorded as a credit in the books of the buyer and a debit in the books of the seller.

• For example, if a buyer purchases goods worth $1,000 and receives a discount of $100 for early payment, the discount rec...read more

Capital exp refers to expenses incurred for acquiring or improving fixed assets. Abbreviation for debtors is DR.

• Capital exp is a long-term investment in assets that will benefit the company for many years.

• Examples of capital exp include purchasing a new building or machinery.

• Debtors are customers who owe money to the company for goods or services provided.

• The abbreviation for debtors is DR, which is used in accounting to represent the accounts receivable balance.

The 7 types of journals are Sales, Purchases, Cash Receipts, Cash Disbursements, General, Payroll, and Non-Cash Adjusting.

• Sales Journal records all sales transactions

• Purchases Journal records all purchases transactions

• Cash Receipts Journal records all cash received transactions

• Cash Disbursements Journal records all cash paid transactions

• General Journal records all other transactions not recorded in the above journals

• Payroll Journal records all payroll transactions

• Non-Cash Adj...read more

Debit is an entry that increases assets and decreases liabilities, while credit is an entry that decreases assets and increases liabilities.

• Debit is on the left side of an account, while credit is on the right side.

• Debit is used to record an increase in assets, such as cash or inventory.

• Credit is used to record a decrease in assets, such as when a customer pays off a debt.

• Debit is used to record a decrease in liabilities, such as when a loan is paid off.

• Credit is used to reco...read more

Debit note is a document sent by a buyer to a seller to request a credit for overcharged amount, while credit note is a document sent by a seller to a buyer to acknowledge a credit for undercharged amount.

• Debit note is sent by the buyer to request a credit for overcharged amount

• Credit note is sent by the seller to acknowledge a credit for undercharged amount

• Debit note reduces the amount payable by the buyer

• Credit note reduces the amount receivable by the seller

• Both debit note...read more

An accountant prepares final statements by analyzing financial transactions and calculating profit and loss. They need mathematics knowledge to perform accurate calculations. Accountants maintain secrets in their accounts department to ensure confidentiality. Debit and credit aspects indicate the financial position of the business.

• Accountants analyze financial transactions to prepare final statements

• They calculate profit and loss by subtracting expenses from revenue

• Mathematic...read more

Self-confidence is about trusting your abilities, while self-belief is about trusting your worth and values.

• Self-confidence is more about skills and abilities, while self-belief is more about personal values and worth.

• Self-confidence can be gained through practice and experience, while self-belief is more innate.

• Self-confidence can be shaken by failure or criticism, while self-belief is more resilient.

• Self-confidence is more external, while self-belief is more internal.

• Exampl...read more

I have worked on QuickBooks, Xero, and SAP. I prefer QuickBooks for its user-friendly interface and comprehensive features.

• I have experience using QuickBooks, Xero, and SAP accounting platforms.

• QuickBooks is my preferred platform due to its user-friendly interface and comprehensive features.

• Xero is also a good platform, but I find it less intuitive than QuickBooks.

• SAP is a powerful platform, but it is more suitable for larger organizations with complex accounting needs.

The 5 basic accounting principles are: revenue recognition, matching principle, cost principle, full disclosure principle, and objectivity principle.

• Revenue recognition: recognizing revenue when it is earned, not when payment is received

• Matching principle: matching expenses with the revenue they generate

• Cost principle: recording assets at their original cost

• Full disclosure principle: disclosing all relevant information in financial statements

• Objectivity principle: using objec...read more

I would immediately rectify the error by contacting the appropriate parties and taking necessary steps to correct the payment.

• Notify the relevant parties about the incorrect payment

• Investigate the cause of the error

• Take necessary steps to rectify the payment, such as issuing a refund or making a correction

• Implement measures to prevent similar errors in the future

The T code for goods receipt is MIGO.

• MIGO is used to post goods receipts for purchase orders, production orders, and inbound deliveries.

• It allows for the creation of material documents and updates inventory and accounting records.

• MIGO can also be used to reverse goods receipts and cancel material documents.

Filter in Excel is used to sort and display specific data based on certain criteria.

• Filter allows users to view a subset of data that meets specific conditions.

• It helps in analyzing and organizing large amounts of data.

• Filtering can be done based on text, numbers, dates, or custom criteria.

• Example: Filtering a sales data sheet to display only the transactions from a specific region.

• Example: Filtering a list of employees to show only those who have a certain job title.

BRS is Bank Reconciliation Statement. There are two types of tax - Direct and Indirect. Journal entries include debit and credit entries.

• BRS is a statement that compares the bank balance as per the bank statement with the balance as per the company's books.

• Direct taxes are taxes that are directly paid by the taxpayer to the government, such as income tax, corporate tax, etc.

• Indirect taxes are taxes that are collected by an intermediary from the person who bears the ultimate e...read more

The tax charged for transit of gold etc. varies depending on the country and specific regulations.

• Tax rates for transit of gold can range from 0% to 10% or more

• Some countries may have specific regulations or exemptions for gold transit

• Tax rates may also depend on the quantity and value of the gold being transported

The golden rules of accountancy are basic principles that guide the recording of financial transactions.

• The first golden rule is the Personal Account rule, which states that all personal accounts are debited for the receiver and credited for the giver.

• The second golden rule is the Real Account rule, which states that all real accounts are debited for what comes in and credited for what goes out.

• The third golden rule is the Nominal Account rule, which states that all nominal a...read more

Accrued refers to the accumulation of something over time, such as interest or expenses.

• Accrued refers to something that has been earned or incurred but not yet paid or received.

• It is commonly used in accounting to refer to expenses or revenues that have been recognized but not yet paid or received.

• For example, if a company has earned revenue but has not yet received payment, that revenue would be considered accrued.

• Similarly, if a company has incurred expenses but has not ye...read more

The accounting equation is a fundamental principle in accounting that states that assets equal liabilities plus equity.

• The accounting equation is expressed as: Assets = Liabilities + Equity

• It is used to ensure that the financial statements are balanced.

• Assets represent what a company owns, liabilities represent what a company owes, and equity represents the owner's interest in the company.

• The equation must always be in balance, meaning that the total value of assets must equa...read more

Net worth of a company is the total assets minus total liabilities, representing the value of the company's equity.

• Net worth = Total assets - Total liabilities

• It represents the value of the company's equity

• It is an important indicator of a company's financial health and stability

• Investors and stakeholders often use net worth to assess the company's value and performance

Closing stock is recorded as an asset in the balance sheet. The entry involves debiting the closing stock account and crediting the trading account.

• Debit the closing stock account

• Credit the trading account

• Closing stock is recorded as an asset in the balance sheet

• The entry is made at the end of the accounting period

To explain a complicated accounting process to a team and report it, use simple language, visuals, examples, and encourage questions.

• Break down the process into smaller steps

• Use simple language and avoid jargon

• Create visuals like flowcharts or diagrams to aid understanding

• Provide real-life examples to illustrate the process

• Encourage team members to ask questions for clarification

The golden rule of accounting is to debit the receiver and credit the giver. The principle of accrual recognizes revenue and expenses when they are incurred, regardless of when cash is received or paid.

• The golden rule of accounting is a fundamental principle that guides the recording of financial transactions.

• It states that for every debit entry, there must be a corresponding credit entry of equal value.

• For example, when a company receives cash from a customer, it debits the ...read more

There are several types of accounting, including financial accounting, management accounting, and tax accounting.

• Financial accounting focuses on recording and reporting financial transactions of a company.

• Management accounting involves analyzing financial data to help with decision-making and planning.

• Tax accounting deals with preparing and filing tax returns for individuals and businesses.

• Other types include forensic accounting, cost accounting, and auditing.

Yes, profit or loss is a nominal account.

• Nominal accounts are accounts that are related to income, expenses, gains, and losses.

• Profit or loss is a nominal account because it is related to the income and expenses of a business.

• It is used to calculate the net profit or loss of a business at the end of an accounting period.

• Examples of other nominal accounts include salaries, rent, interest, and depreciation.

Provisions are liabilities that are uncertain in timing or amount, but are likely to occur.

• Provisions are made for expenses that are expected to occur in the future.

• They are recognized as liabilities on the balance sheet.

• Examples include warranties, legal claims, and restructuring costs.

• Provisions are based on estimates and are adjusted as more information becomes available.

The abbreviation for creditor is CR.

• CR stands for creditor

• CR is used in accounting and finance

• CR is the opposite of debtor (DR)

I reconcile payment and credit balances on a monthly basis.

• I reconcile all payment and credit balances at the end of each month

• I ensure that all transactions are accurately recorded in the accounting system

• I investigate and resolve any discrepancies or errors in the balances

• I provide reports on the reconciliations to management

• For example, in my previous role, I reconciled all payment and credit balances for a large retail company on a monthly basis

The best way for developing an organization is to focus on continuous improvement and innovation.

• Encourage a culture of learning and development

• Invest in technology and automation

• Regularly review and update processes and procedures

• Listen to feedback from employees and customers

• Set clear goals and objectives

• Collaborate with other organizations and industry experts

• Stay up-to-date with industry trends and best practices

Yes, I have experience in billing and maintaining accounts accurately.

• I have worked with various accounting software such as QuickBooks and Xero.

• I am familiar with creating invoices, recording payments, and reconciling accounts.

• I have experience in managing accounts payable and receivable.

• I am detail-oriented and ensure accuracy in all financial transactions.

• In my previous role, I reduced billing errors by 20% through implementing a new system.

The golden rules of accounting are basic principles that guide the recording of financial transactions.

• The first golden rule is the rule of debit and credit.

• The second golden rule is the rule of assets and liabilities.

• The third golden rule is the rule of income and expenses.

• These rules ensure accuracy and consistency in financial reporting.

• For example, if a company purchases inventory on credit, the rule of debit and credit dictates that the inventory account is debited and t...read more

A trial balance is a list of all the general ledger accounts used by a company, along with their respective debit or credit balances.

• A trial balance is prepared to ensure that the total debits equal the total credits in the general ledger.

• It helps in identifying any errors or discrepancies in the accounting records.

• The trial balance includes all the accounts, such as assets, liabilities, equity, revenues, and expenses.

• Each account is listed with its balance, either as a debit...read more

I will reduce the cost of the product by optimizing the production process and sourcing cheaper raw materials.

• Analyze the production process to identify inefficiencies and eliminate waste

• Negotiate with suppliers to get better prices for raw materials

• Explore alternative materials that are cheaper but still meet quality standards

• Implement cost-saving measures such as energy-efficient equipment and automation

• Consider outsourcing non-core activities to reduce overhead costs

R2R stands for Record to Report, which is a finance and accounting process that involves recording financial transactions and preparing financial statements.

• R2R is a crucial process in accounting that involves recording financial transactions, reconciling accounts, and preparing financial statements.

• It includes activities such as journal entries, general ledger maintenance, balance sheet reconciliations, and financial reporting.

• The process ensures that financial data is accur...read more

Inventory valuation is the process of assigning a monetary value to the items held in stock by a business.

• Inventory valuation methods include FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost.

• The chosen method can impact the reported profit and taxes of a business.

• Inventory valuation helps in determining the cost of goods sold and the value of ending inventory on the balance sheet.

Bank Reconciliation statement is a document that compares the bank statement with the company's cash records.

• It helps identify any discrepancies between the bank statement and the company's records.

• It ensures that the company's cash balance is accurate and complete.

• It includes adjustments for outstanding checks, deposits in transit, bank fees, and other transactions.

• The statement reconciles the ending balance on the bank statement with the adjusted cash balance per the compan...read more

Cash flow refers to the movement of money in and out of a business.

• It is the net amount of cash and cash equivalents being transferred into and out of a business

• Positive cash flow means more money is coming in than going out

• Negative cash flow means more money is going out than coming in

• Cash flow is important for assessing a company's financial health and ability to pay its bills

• Examples of cash inflows include sales revenue, loans, and investments

• Examples of cash outflows inc...read more

Tax Deducted at Source (TDS) is a system of collecting tax at the source of income.

• TDS is applicable to various types of income such as salary, interest, commission, rent, etc.

• The person making the payment deducts a certain percentage of tax before making the payment to the recipient.

• The deducted tax is then deposited with the government on behalf of the recipient.

• TDS helps in the regular collection of taxes and prevents tax evasion.

• For example, if an employee earns a salary ...read more

TDS stands for Tax Deducted at Source. It is a system in which tax is deducted from the income of an individual or entity at the time of payment.

• TDS is a method of collecting tax in India

• It is applicable to various types of payments such as salaries, interest, rent, etc.

• The person making the payment deducts a certain percentage of tax before making the payment

• The deducted tax is then deposited with the government on behalf of the recipient

• The recipient can claim the TDS amoun...read more

There are three types of depreciation: straight-line, accelerated, and sum-of-the-years' digits.

• Straight-line depreciation is the simplest and most commonly used method.

• Accelerated depreciation methods include double-declining balance and units of production.

• Sum-of-the-years' digits depreciation is a more complex method that takes into account the asset's useful life.

• Depreciation is used to allocate the cost of an asset over its useful life.

• Depreciation expense reduces the va...read more