100+ Accountant Interview Questions and Answers for Freshers

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

Yes, I am familiar with Microsoft Office Excel.

• I have extensive experience using Excel for data analysis and financial reporting.

• I am proficient in creating and formatting spreadsheets, using formulas and functions, and creating charts and graphs.

• I have used Excel to track and analyze financial data, create budgets, and perform complex calculations.

• I am also familiar with advanced features such as pivot tables and macros.

• I can provide examples of projects where I have utilize...read more

Working capital is the difference between current assets and current liabilities. Bank reconciliation is the process of matching the balances in a company's accounting records to the corresponding information on a bank statement. Golden rules of accounting are basic principles that guide the process of recording financial transactions.

• Working capital is calculated as current assets minus current liabilities.

• Bank reconciliation involves comparing the company's records with the...read more

The account name is John Doe, bank name is ABC Bank, IFSC code is ABCD1234567 and account number is 1234567890.

• Account name: John Doe

• Bank name: ABC Bank

• IFSC code: ABCD1234567

• Account number: 1234567890

Depreciation is the decrease in value of an asset over time. Drawings are withdrawals of funds by the owner. Petty cash is a small amount of cash kept on hand for minor expenses.

• Depreciation is a non-cash expense that reflects the wear and tear of an asset over time.

• Drawings are funds taken out of a business by the owner for personal use.

• Petty cash is a small amount of cash kept on hand for minor expenses such as office supplies or postage.

• Depreciation is calculated using var...read more

Yes, I am fluent in English, Spanish, and French.

• I am fluent in English, Spanish, and French

• I have experience working with clients who speak these languages

• I am able to communicate effectively in all three languages

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

• Depreciation is a concept in accounting that recognizes the decline in value of an asset over time.

• It is a non-cash expense that reduces the value of an asset on the balance sheet.

• Depreciation methods include straight-line, declining balance, and units of production.

• Straight-line depreciation allocates an equal amount of depreciation expense each year.

• Declining balance depreciation front-lo...read more

Accounting involves recording, analyzing, and reporting financial transactions. It includes various types, golden rules, TDS, TCS, and GST.

• Types of accounts include assets, liabilities, equity, income, and expenses.

• Golden rules of accounting are: Debit the receiver, Credit the giver; Debit what comes in, Credit what goes out; Debit all expenses and losses, Credit all incomes and gains.

• TDS (Tax Deducted at Source) is a tax deducted by the payer while making payment to the paye...read more

Accounts are used in organizations to track financial transactions, monitor performance, and make informed business decisions.

• Accounts help track financial transactions and ensure accuracy in recording income and expenses.

• They provide a clear picture of the organization's financial health and performance.

• Accounts help in budgeting, forecasting, and making informed business decisions.

• They are essential for tax compliance and financial reporting.

• Examples: balance sheet, income ...read more

The financial status of a company refers to its overall financial health and performance.

• Financial status can be determined by analyzing financial statements such as balance sheets, income statements, and cash flow statements.

• Key indicators of financial status include profitability, liquidity, solvency, and efficiency.

• Profitability measures the company's ability to generate profits, while liquidity measures its ability to meet short-term obligations.

• Solvency measures the comp...read more

I have 5 years of experience working as an Accountant in a multinational company.

• I have worked in a multinational company for 5 years

• I have experience in financial statement preparation and analysis

• I am proficient in using accounting software such as QuickBooks and SAP

• I have handled accounts payable and receivable processes

• I have assisted in budgeting and forecasting activities

Tally is an accounting software used for financial record keeping and management by businesses.

• Tally is a popular accounting software used by businesses to maintain financial records.

• It helps in managing accounts, inventory, payroll, and other financial aspects of a business.

• Tally provides features like invoicing, financial statements, and tax compliance.

• It is used by accountants and financial professionals to streamline financial processes and ensure accuracy in financial re...read more

Taxation refers to the process of levying taxes on individuals and businesses by the government.

• Taxation is a means of generating revenue for the government.

• It involves the imposition of taxes on income, goods and services, property, and other transactions.

• The collected taxes are used to fund public services such as healthcare, education, and infrastructure.

• Taxation policies vary from country to country and can have a significant impact on the economy.

• Examples of taxes includ...read more

Depreciation is the allocation of the cost of tangible assets over their useful life, while amortization is the allocation of the cost of intangible assets over their useful life.

• Depreciation applies to tangible assets like buildings, machinery, and vehicles.

• Amortization applies to intangible assets like patents, copyrights, and trademarks.

• Depreciation is usually calculated using methods like straight-line or declining balance.

• Amortization is typically calculated using the st...read more

Tally is a popular accounting software that has been updated to include GST features.

• Tally allows for easy and accurate GST compliance

• It can generate GST invoices and file GST returns

• Tally also provides real-time GST reports and analysis

• Users can set up GST rates and tax slabs in Tally

• Tally can also handle GST transactions for interstate and intrastate sales

GST stands for Goods and Services Tax, a value-added tax levied on the supply of goods and services.

• GST is a comprehensive indirect tax that has replaced many indirect taxes in India.

• There are three types of GST: CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax).

• CGST and SGST are levied by the central and state governments, respectively, on intra-state supplies of goods and services.

• IGST is levied by the c...read more

Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• It is calculated by dividing the cost of the asset by its useful life.

• There are different methods of calculating depreciation, such as straight-line, declining balance, and sum-of-the-years-digits.

• Examples of assets that can be depreciated include buildings, vehicles, machine...read more

MIS in Accounting stands for Management Information System which is a computerized system used to manage and analyze financial data.

• MIS helps in generating financial reports and analyzing financial data

• It helps in decision making by providing accurate and timely information

• MIS can be used to track inventory, sales, and expenses

• It can also be used to monitor cash flow and budgeting

• Examples of MIS software include QuickBooks, Xero, and Sage

P2P in Accounting stands for Procure-to-Pay, which is the process of purchasing goods or services and paying for them.

• P2P involves several steps such as requisition, purchase order, receipt of goods or services, invoice processing, and payment.

• It helps in streamlining the procurement process and reducing costs.

• P2P can be automated using software such as ERP systems.

• Examples of P2P software include SAP Ariba, Coupa, and Oracle Procurement Cloud.

Yes, I am familiar with Microsoft Excel.

• I have extensive experience using Microsoft Excel for data analysis and financial reporting.

• I am proficient in creating and formatting spreadsheets, using formulas and functions, and creating charts and graphs.

• I have used Excel to track and analyze financial data, create budgets, and perform complex calculations.

• I am also familiar with advanced features such as pivot tables and macros.

• For example, in my previous role as an accountant, I...read more

Yes, I am proficient in Microsoft Office Excel.

• I have extensive experience using Excel for data analysis and financial reporting.

• I am skilled in creating complex formulas, pivot tables, and charts.

• I have used Excel to track and analyze budgets, expenses, and financial forecasts.

• I am familiar with advanced features such as VLOOKUP, IF statements, and conditional formatting.

• I can efficiently organize and manipulate large datasets in Excel.

A trial balance is a list of all the accounts in the general ledger with their debit or credit balances.

• Prepared at the end of an accounting period

• Used to ensure that the total of all debits equals the total of all credits

• Helps in identifying errors in the accounting records

• If the trial balance doesn't balance, it indicates that there is an error in the accounting records

• Does not guarantee that the accounting records are error-free

A computer is an electronic device that processes data and performs tasks according to instructions given by the user.

• A computer is made up of hardware components such as the central processing unit (CPU), memory, and storage devices.

• It operates using software programs that provide instructions for the hardware to execute.

• Computers can perform various tasks such as calculations, data processing, communication, and multimedia functions.

• The founder of the modern computer is con...read more

Direct tax is a tax paid directly by an individual or organization to the government, while indirect tax is a tax imposed on goods and services.

• Direct tax is paid directly by the taxpayer to the government, such as income tax, corporate tax, and property tax.

• Indirect tax is collected by an intermediary (like a retailer) from the person who bears the ultimate economic burden of the tax, such as sales tax, value-added tax (VAT), and excise duty.

I am coming from [location].

• I am originally from [hometown].

• I recently moved from [previous location].

• I am currently living in [current location].

Yes, I am familiar with GST, ITR, and payment journal entry.

• GST (Goods and Services Tax) is a tax levied on the supply of goods and services in India.

• ITR (Income Tax Return) is a form used to file income tax with the government.

• Payment journal entry is a record of financial transactions that shows the debit and credit accounts affected by each transaction.

The 3 rules of accounting are the accounting equation, the revenue recognition principle, and the matching principle.

• Accounting Equation: Assets = Liabilities + Equity

• Revenue Recognition Principle: Recognize revenue when it is earned, not when cash is received

• Matching Principle: Match expenses to the revenues they helped generate

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business.

• Recording financial transactions

• Summarizing financial data into financial statements

• Analyzing financial information to make business decisions

• Reporting financial results to stakeholders

• Ensuring compliance with financial regulations

• Examples: preparing balance sheets, income statements, cash flow statements

A balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

• A balance sheet provides a snapshot of a company's financial position.

• It shows what a company owns (assets), what it owes (liabilities), and the difference between the two (shareholders' equity).

• Assets are typically listed in order of liquidity, while liabilities are listed in order of maturity.

• The balance sheet equation is: Assets = Liabil...read more

Nominal accounts are temporary accounts used to record revenues, expenses, gains, and losses.

• Nominal accounts are closed at the end of each accounting period.

• They are used to determine the net income or net loss of a business.

• Examples include revenue accounts, expense accounts, and dividend accounts.

I will boost sales by implementing targeted marketing strategies and improving customer experience.

• Conduct market research to identify target audience and their needs

• Develop personalized marketing campaigns to reach target audience

• Improve customer experience through better communication and service

• Offer promotions and discounts to attract new customers and retain existing ones

• Collaborate with sales team to identify new opportunities and close deals

The T code for Vendor Invoice processing is FB60 in SAP.

• T code FB60 is used in SAP for Vendor Invoice processing.

• FB60 allows users to create, change, display, and post vendor invoices.

• Users can also perform other functions related to vendor invoices using T code FB60.

• Example: To process a vendor invoice, enter T code FB60 in the SAP command field.

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

• The golden rules include: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified in the accounting system.

• For example, when a company receives cash from a customer, the cash account is debited (increas...read more

A bank reconciliation statement is a document that compares the balance in a company's bank account with the balance shown in its accounting records.

• It helps identify any discrepancies between the two balances, such as outstanding checks or deposits in transit.

• The statement typically includes adjustments for items like bank fees, interest earned, and errors.

• The goal of a bank reconciliation statement is to ensure the accuracy of a company's financial records and bank account ...read more

Yes, TDS stands for Tax Deducted at Source and GST stands for Goods and Services Tax.

• TDS is a tax collected by the government at the time of payment and is applicable to various types of income such as salary, interest, rent, etc.

• GST is a tax levied on the supply of goods and services and is applicable to all stages of the supply chain.

• Both TDS and GST are important for businesses to comply with tax regulations and avoid penalties.

The first bank established by the Bank of England

• The Bank of England was established in 1694 and is considered the first central bank in the world

• It was established to act as the government's banker and debt manager

• The Bank of England also issues banknotes and regulates the UK's monetary policy

Commence refers to the beginning or start of something, such as a project or activity.

• Commence is a verb that means to begin or start something.

• It is often used in formal or professional contexts to indicate the start of a project, event, or activity.

• For example, 'The construction of the new office building will commence next month.'

Journal rules of accounting ensure that balance sheet and profit and loss accounts are accurate and in compliance with accounting standards.

• Journal entries must follow the double-entry system, where each transaction affects at least two accounts.

• Debits must equal credits in every journal entry to ensure the accounting equation (Assets = Liabilities + Equity) remains balanced.

• Balance sheet accounts represent the financial position of a company at a specific point in time, whil...read more

Yes, I have experience filing GST before.

• Yes, I have filed GST returns for multiple clients in my previous role.

• I am familiar with the GST filing process and deadlines.

• I have experience reconciling GST data with financial records.

• I have also dealt with GST audits and inquiries from tax authorities.

Yes, I am proficient in MS Excel.

• I have extensive experience using MS Excel for data analysis and financial reporting.

• I am skilled in creating complex formulas, pivot tables, and charts.

• I have used Excel to track and analyze budgets, expenses, and financial forecasts.

• I am familiar with advanced features such as VLOOKUP, IF statements, and conditional formatting.

• I have successfully completed various Excel projects, including automating repetitive tasks and creating financial m...read more

A journal or diary is a record of daily events, thoughts, and feelings.

• A journal or diary is a personal record of one's life experiences.

• It can be used to track progress towards goals or reflect on past experiences.

• Entries can include thoughts, feelings, and observations about the world around us.

• Some people use journals to work through difficult emotions or to practice gratitude.

• Examples of journals include bullet journals, gratitude journals, and travel journals.

Basic accounting involves recording financial transactions, preparing financial statements, and analyzing financial information.

• Basic accounting principles include the matching principle, accrual basis accounting, and the revenue recognition principle.

• Accounting involves recording financial transactions in journals and posting them to ledgers.

• Financial statements like the balance sheet, income statement, and cash flow statement are prepared to summarize the financial position...read more

I have a Bachelor's degree in Accounting and have completed several courses in finance and taxation.

• Bachelor's degree in Accounting

• Courses in finance and taxation

• Continuing education in accounting principles and practices

There are five types of accounts in US accounting: assets, liabilities, equity, revenue, and expenses.

• Assets: resources owned by a company, such as cash, inventory, and property

• Liabilities: debts or obligations owed by a company, such as loans and accounts payable

• Equity: the residual interest in the assets of a company after deducting liabilities

• Revenue: income generated from the sale of goods or services

• Expenses: costs incurred by a company in order to generate revenue