1000+ Accountant Interview Questions and Answers

Bank reconciliation is the process of matching and comparing the balance in the bank statement with the company's own records.

• Bank reconciliation helps in identifying any discrepancies between the two records.

• It involves checking for any outstanding checks, deposits in transit, bank errors, etc.

• The end goal is to ensure that the company's financial records are accurate and up-to-date.

• Journal entry for provision for income tax involves debiting the income tax expense account a...read more

Return the next lexicographically greater permutation of a given sequence or return it in ascending order if not possible.

• Use the concept of lexicographic ordering to find the next permutation.

• If the sequence is already in descending order, return it in ascending order.

• Examples: ['a', 'b', 'c'] -> ['a', 'c', 'b'], ['3', '2', '1'] -> ['1', '2', '3']

Program to find lowest common ancestor of two nodes in a binary tree with unique values.

• Start from the root and traverse the tree to find the paths from root to the two nodes.

• Compare the paths to find the lowest common ancestor node.

• Use recursion to traverse the tree efficiently.

• Handle edge cases like if one of the nodes is the ancestor of the other.

Unbilled revenue is revenue that has been earned but not yet invoiced to the customer.

• Unbilled revenue represents work that has been completed but not yet billed to the customer.

• It is typically recorded as a liability on the balance sheet until an invoice is generated.

• Common examples include services performed, products delivered, or projects completed but not yet invoiced.

• Monitoring unbilled revenue is important for cash flow management and financial reporting.

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

Yes, I am independently capable of handling GST, TDS, and finalizing balance sheets.

• I have extensive experience and knowledge in managing GST (Goods and Services Tax) compliance.

• I am proficient in handling TDS (Tax Deducted at Source) calculations and filings.

• I have successfully finalized balance sheets for previous organizations, ensuring accuracy and compliance.

• I am familiar with relevant accounting software and tools to efficiently handle these tasks.

• I can provide examples...read more

The percentage of tax deductible under TDS RENT varies depending on the applicable tax laws and regulations.

• The percentage of tax deductible under TDS RENT is determined by the tax authorities.

• It is important to consult the relevant tax laws and regulations to determine the exact percentage.

• The percentage may vary based on factors such as the type of property, rental income, and jurisdiction.

• For example, in some countries, the tax deductible under TDS RENT may be 10%, while i...read more

Yes, I can improve your company's business by analyzing financial data, identifying areas of improvement, and implementing cost-saving measures.

• Conduct a thorough analysis of financial data to identify areas of improvement

• Implement cost-saving measures such as reducing unnecessary expenses

• Develop and implement a strategic financial plan to increase revenue

• Provide regular financial reports to track progress and make necessary adjustments

• Offer advice on tax planning and complia...read more

Net profit can be calculated by subtracting the profit percentage from the gross profit.

• Calculate 20% of the gross profit (1200) which is 240.

• Subtract the profit percentage from the gross profit to get the net profit: 1200 - 240 = 960.

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.

Trail balance is a list of all ledger accounts, income statement shows revenue and expenses, balance sheet shows assets and liabilities.

• Trail balance lists all ledger accounts and their balances

• Income statement shows revenue and expenses for a specific period

• Balance sheet shows assets, liabilities and equity at a specific point in time

• Trail balance is used to ensure that debits and credits are equal

• Income statement helps in determining the profitability of a business

• Balance s...read more

Outstanding entries are shown in the liabilities section of the balance sheet.

• Outstanding entries represent amounts owed by the company to its creditors or other parties.

• These entries are typically recorded as accounts payable or accrued expenses.

• Liabilities section of the balance sheet includes accounts payable, accrued expenses, and other outstanding obligations.

• Examples of outstanding entries include unpaid invoices, salaries payable, and taxes payable.

I am proficient in using QuickBooks, SAP, and Excel to streamline accounting processes and ensure accuracy.

• Proficient in QuickBooks for managing financial transactions and generating reports

• Experience with SAP for tracking expenses and analyzing financial data

• Skilled in using Excel for creating spreadsheets, charts, and graphs to organize financial information

• Utilized accounting software to automate repetitive tasks and reduce errors

The golden rules of accounting 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 ac...read more

I have extensive knowledge of Tally and can perform personal work for bosses.

• I am proficient in Tally and have used it extensively in my previous roles.

• I am familiar with the various features of Tally, including inventory management, payroll, and taxation.

• I have also assisted my previous bosses with their personal work, such as managing their finances and investments.

• I am willing to learn and adapt to any new requirements that may arise.

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 based on the useful life of the asset and the method of depreciation chosen.

• Examples of assets that can be depreciated include buildings, vehicles, machinery, and equipment.

• Depreciation can be straight-line, accelerated, or units of production method.

• Depreciat...read more

Yes, I have experience in handling GST, direct tax, and finalization of balance sheets.

• I have successfully managed GST compliance for multiple clients, ensuring accurate and timely filing of returns.

• I am well-versed in the various provisions of direct tax laws and have prepared and filed income tax returns for individuals and businesses.

• I have experience in finalizing balance sheets, reconciling accounts, and preparing financial statements.

• I am familiar with the necessary doc...read more

Accounting of a company involves recording, analyzing, and reporting financial transactions and activities.

• Recording financial transactions such as sales, purchases, and expenses

• Analyzing financial data to assess the company's financial health and performance

• Preparing financial statements like balance sheets, income statements, and cash flow statements

• Managing accounts receivable and accounts payable

• Ensuring compliance with financial regulations and standards

• Providing financi...read more

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

If inventory goes up by $10, the cost of goods sold will decrease by $10 and the gross profit will increase by $10.

• Increase in inventory will be recorded as an asset on the balance sheet

• The cost of goods sold will decrease by the same amount as the increase in inventory

• The gross profit will increase by the same amount as the increase in inventory

• The net income will remain the same unless there are additional expenses or revenues

• This assumes that the inventory is being valued ...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

Working capital is the measure of a company's liquidity and operational efficiency. It represents the difference between current assets and current liabilities.

• Working capital is the amount of money available to a company for its day-to-day operations.

• It is calculated by subtracting current liabilities from current assets.

• Positive working capital indicates that a company has enough assets to cover its short-term liabilities.

• Negative working capital means that a company's curr...read more

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

• Classification of accounting includes financial accounting, management accounting, tax accounting, and auditing.

• Financial accounting involves recording and reporting financial transactions for external stakeholders.

• Management accounting involves providing financial information to internal stakeholders to aid in decision...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

AP is the money a company owes to its suppliers, while AR is the money owed to the company by its customers.

• AP (Accounts Payable) is the amount of money a company owes to its suppliers for goods or services received.

• AR (Accounts Receivable) is the amount of money owed to the company by its customers for goods or services provided.

• Impairment refers to a decrease in the value of an asset, while depreciation is the allocation of an asset's cost over its useful life.

• Tangible asse...read more

I would check the product information through the company's inventory system and cross-check it with the delivery receipt.

• Check the company's inventory system for the product information

• Cross-check the information with the delivery receipt

• Verify the product's quantity, description, and any other relevant details

• Contact the supplier or relevant department if there are any discrepancies

Convert a set of integers to Roman numerals

• Create a function that takes an integer array as input

• Use a loop to iterate through each integer and convert it to Roman numeral

• Implement a mapping of integers to Roman numerals for conversion

• Return an array of strings containing the Roman numeral equivalents

The entry for credit purchase of Rs 2,00,000 including GST 18% involves debiting the purchase account and crediting the accounts payable account.

• Debit the Purchase account for Rs 2,00,000

• Credit the Accounts Payable account for Rs 2,36,000 (including GST)

• GST of Rs 36,000 is calculated as 18% of Rs 2,00,000

• The journal entry would be: Purchase A/C Dr. 2,00,000, To Accounts Payable A/C 2,36,000

There are two types of Reconciliation - Bank Reconciliation and Account Reconciliation.

• Bank Reconciliation is the process of matching the bank statement with the company's records.

• Account Reconciliation is the process of matching the general ledger account with the subsidiary ledger account.

• Bank Reconciliation helps to identify any discrepancies in the bank statement and the company's records.

• Account Reconciliation helps to ensure that the general ledger account and the subsi...read more

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

• Accounting involves recording financial transactions

• It includes classifying and summarizing financial data

• The information is used to make business decisions

• Examples of financial transactions include sales, purchases, and expenses

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

• The golden rules include the Personal Account, Real Account, and Nominal Account.

• Personal Account: Debit the receiver, credit the giver. For example, when cash is received from a customer, debit the cash account and credit the customer's account.

• Real Account: Debit what comes in, credit what goes out. For example, when purchasing inventory, debit the inventory account and cred...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

GST is a tax levied on goods and services. There are 4 types of GST. GST returns can be filled online.

• GST stands for Goods and Services Tax

• Types of GST are CGST, SGST, IGST, and UTGST

• GST returns can be filled online on the GST portal

• GST returns need to be filed monthly or quarterly depending on the turnover

• Late filing of GST returns attracts a penalty

I have extensive experience and knowledge in accounts.

• I have worked as an accountant for 5 years, handling various financial tasks such as bookkeeping, financial analysis, and tax preparation.

• I am well-versed in accounting principles, including GAAP and IFRS.

• I have a strong understanding of financial statements, such as balance sheets, income statements, and cash flow statements.

• I have experience using accounting software like QuickBooks and Excel to manage financial data and...read more

The package is exceptional in terms of its benefits and compensation.

• The package offers competitive salary and bonuses.

• It includes comprehensive health insurance and retirement plans.

• There are opportunities for professional development and growth.

• The company provides various employee perks and incentives.

• The package demonstrates the company's commitment to employee satisfaction.

I have a strong knowledge in accounts including financial statements, bookkeeping, and tax regulations.

• Proficient in preparing financial statements such as balance sheets, income statements, and cash flow statements

• Expertise in bookkeeping and maintaining accurate records of financial transactions

• In-depth understanding of tax regulations and compliance requirements

• Familiarity with accounting software such as QuickBooks and Xero

• Experience in analyzing financial data and provid...read more

Retained earnings account is a cumulative balance of net income that has been retained in the business rather than distributed to shareholders.

• Represents the portion of net income that a company keeps rather than distributing to shareholders as dividends

• Can be used for reinvesting in the business, paying off debt, or other purposes

• Increases when the company generates profits and decreases when dividends are paid out

• Shown on the balance sheet under the equity section

A credit note is a document issued by a seller to a buyer, indicating that a certain amount has been credited to the buyer's account.

• It is issued when goods are returned by the buyer or when there is an overpayment by the buyer.

• It serves as a proof of the credit made to the buyer's account.

• It includes details such as the buyer's name, date of issue, reason for credit, and the amount credited.

• It is used to adjust the buyer's account balance and can be used as a reference for f...read more

An accounting firm is a professional service firm that provides accounting and financial services to businesses and individuals.

• Accounting firms offer services such as bookkeeping, tax preparation, financial statement analysis, and auditing.

• They help businesses maintain accurate financial records and comply with tax laws and regulations.

• Accounting firms may also provide consulting services to help businesses improve their financial performance and make strategic decisions.

• Exa...read more

To make a payment entry against a purchase, you need to record the payment details in the accounting system.

• Identify the purchase transaction that needs to be paid

• Record the payment details such as payment date, payment method, and amount

• Allocate the payment to the appropriate purchase account or vendor

• Update the accounts payable balance to reflect the payment

• Ensure proper documentation and reconciliation of the payment entry

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

GST stands for Goods and Services Tax. It is a comprehensive indirect tax levied on the supply of goods and services.

• GST is a single tax that replaced multiple indirect taxes in India.

• It was implemented on July 1, 2017, with the aim of simplifying the tax structure and promoting ease of doing business.

• GST is levied at every stage of the supply chain, from the manufacturer to the consumer.

• It is divided into Central GST (CGST) and State GST (SGST), which are collected by the ce...read more

There are three types of accounts: personal, real, and nominal.

• Personal accounts are related to individuals or organizations, such as customers or suppliers.

• Real accounts are related to assets and liabilities, such as buildings or loans.

• Nominal accounts are related to income and expenses, such as salaries or rent.

• Each type of account has a different role in the accounting process.

• The classification of accounts helps in the preparation of financial statements.

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.

Identified a financial issue with vendor payments and implemented a new process to streamline payments.

• Discovered that vendor payments were being delayed due to a manual approval process

• Implemented an automated approval system that reduced payment processing time by 50%

• Collaborated with IT team to develop and implement the new system

• Monitored the new process and made adjustments as needed to ensure efficiency

The three golden rules of accounting are the basis of recording financial transactions accurately.

• The first rule is the Personal Account, which deals with transactions related to individuals or organizations.

• The second rule is the Real Account, which deals with transactions related to assets, liabilities, and capital.

• The third rule is the Nominal Account, which deals with transactions related to expenses, incomes, gains, and losses.

• These rules help in maintaining the accuracy...read more

Accrual concept is a method of accounting where revenues and expenses are recognized when earned or incurred, regardless of when payment is received or made.

• Revenue is recognized when it is earned, not when payment is received

• Expenses are recognized when they are incurred, not when payment is made

• Accrual accounting provides a more accurate picture of a company's financial health

• Example: A company provides services to a customer in December but does not receive payment until J...read more