100+ Accountant Interview Questions and Answers for Freshers

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

A journal is a record of financial transactions categorized into different types such as sales, purchases, and cash receipts.

• A journal is a book of original entry where transactions are first recorded.

• There are different types of journals such as sales journal, purchases journal, cash receipts journal, and cash disbursements journal.

• Sales journal records all credit sales transactions.

• Purchases journal records all credit purchases transactions.

• Cash receipts journal records all...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

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

The various concepts of Accounting include accruals, consistency, materiality, prudence, and going concern.

• Accruals: Recognizing revenues and expenses when they are incurred, not when they are received or paid.

• Consistency: Applying the same accounting methods and principles consistently over time.

• Materiality: Only recording information that is significant or material to the financial statements.

• Prudence: Exercising caution and not overstating assets or revenues, but recognizi...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

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 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

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

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.

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 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.'

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.

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 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

I am proficient in three languages: English, Spanish, and French.

• Proficient in English, Spanish, and French

• Able to read, write, and speak fluently in all three languages

• Experience translating documents and interpreting for clients

• Familiarity with technical accounting terminology in all three languages

Working capital is the measure of a company's liquidity and operational efficiency.

• Working capital is the difference between a company's current assets and current liabilities.

• It represents the funds available to a company for day-to-day operations.

• Positive working capital indicates a company's ability to meet short-term obligations.

• Negative working capital suggests a company may struggle to pay off its current liabilities.

• Working capital management involves optimizing the ba...read more

The accounting cycle is a series of steps that a company follows to record and report its financial transactions.

• The cycle starts with identifying and analyzing transactions

• Then, the transactions are recorded in the journal

• The journal entries are then posted to the ledger

• An unadjusted trial balance is prepared to ensure the debits and credits are equal

• Adjusting entries are made to update accounts for accruals and deferrals

• An adjusted trial balance is prepared to ensure the ac...read more

Capital expenditure is for long-term assets while revenue expenditure is for day-to-day expenses.

• Capital expenditure is for acquiring long-term assets like property, plant, and equipment.

• Revenue expenditure is for day-to-day expenses like salaries, rent, and utilities.

• Capital expenditure is recorded as an asset on the balance sheet and depreciated over time.

• Revenue expenditure is recorded as an expense on the income statement and reduces profit for the period.

• Capital expendit...read more

Yes, I am familiar with MS Excel.

• I have extensive experience using MS 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 MS Excel to track and analyze financial data, create budgets, and generate financial statements.

• I am also skilled in using advanced features of MS Excel such as pivot tables and macros.

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

Maintain accounts details by recording transactions accurately and timely.

• Record all financial transactions in a ledger or accounting software

• Ensure accuracy of data entry and reconcile accounts regularly

• Maintain proper documentation of all financial transactions

• Implement internal controls to prevent errors and fraud

• Regularly review financial statements to identify any discrepancies

Company status refers to the legal and financial standing of a company.

• It indicates whether a company is active or inactive.

• It also reflects the financial health of the company.

• Company status can be checked through government databases or credit reporting agencies.

• Examples of company status include 'active', 'dissolved', 'suspended', and 'bankrupt'.

Mail merge is a feature in word processing software that allows you to create personalized letters or emails using a template and a list of recipients.

• Mail merge is used to create personalized letters, envelopes, labels, and emails.

• It requires a template document and a data source, such as an Excel spreadsheet or a database.

• The data source contains the information that will be merged into the template, such as names and addresses.

• Mail merge can save time and effort when sendi...read more

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 accuracy and consistency in financial reporting.

• For example, when a company receives cash from a customer, the transaction would be recorded by debiting the cash account (what comes in) a...read more

E-invoicing and e-way billing are essential features in modern accounting software for efficient and compliant financial transactions.

• E-invoicing allows for the creation, exchange, and validation of invoices electronically, reducing manual errors and improving efficiency.

• E-way billing is mandatory for the transportation of goods worth over a certain threshold, ensuring proper documentation and compliance with tax regulations.

• Integration of e-invoicing and e-way billing in acc...read more

Tally Prime and Busy accounting software are both popular accounting software used by businesses.

• Tally Prime is known for its user-friendly interface and comprehensive features for financial management.

• Busy accounting software is preferred by some businesses for its customization options and advanced reporting capabilities.

• Both software can handle tasks like invoicing, inventory management, and financial reporting efficiently.

• Some businesses may use Tally Prime for its simpli...read more

Experience in a company refers to the knowledge and skills gained while working in a particular organization.

• Experience in company includes learning about the company culture, policies, and procedures.

• It also involves developing technical and soft skills relevant to the job.

• Examples of experience in company include working on projects, collaborating with colleagues, and handling client interactions.

• Experience in company can be gained through internships, part-time or full-tim...read more