Accounting Interview Questions with Answers
Categories: Accountancy
What do you mean when you say that you have negative working capital?
When a company’s current liabilities exceed its current assets, it is named negative working capital. It is a common terminology in certain industries like retail and restaurant businesses.
What are the major constraints that can hamper relevant and reliable financial statements?
Here are some of the major constraints:
- Delay, which leads to irrelevant information
- No balance between costs and benefits
- No balance between the qualitative characteristics
- No clarity in true and fair view presentation
Tell me the golden rules of accounting, just mention the statements.
This accounting interview question tests your professional view of the subject. You can mention by elaborating this accounting interview answer on the three golden rules of accounting.
- Debit the receiver, credit the giver
- Debit what comes in, credit what goes out
- Debit all expenses and losses, credit all incomes and gains
Please elaborate on what this statement means – “Debit the Receiver, Credit the Giver”.
So, this is among the most frequently asked accounting interview questions. Your reply should be –
This principle is used in the case of personal accounts. If a person is giving any amount either in cash or by cheque to an organization, it becomes an inflow and thus that person must be credited in the books of accounts. Therefore, when an organization received the money or cheque, it needs to credit the person who is paying and debit the organization.
Any idea what is ICAI?
Of course, it is the abbreviation of the Institute of Chartered Accountants in India.
Give some examples of fixed assets that you record in the balance sheet?
To answer this accounting interview question, you need to specify your understanding of the concept. Before jumping straight to the answer, you may want to define fixed assets first. A brief intro such as – fixed assets are those which are not consumed in one fiscal year, will ensure the recruiter that you mean these are long-term assets. You can further mention that these assets are recorded in the asset section of the balance sheet.
What is Executive Accounting?
Executive Accounting is specifically designed for service-based businesses. This term is popular in finance, advertising, and public relations businesses.
What are the bills receivable?
Bills receivable are the proceeds or payments, which a merchant or a company will be receiving from its customers.
When replying to accounting interview questions, be very specific, and don’t talk about generic stuff.
Define Balancing.
Balancing means equating or balancing both the debit and credit sides of a T-account.
What is Marginal Cost?
If there is an increase in the number of units produced, the total cost of output is changed. Marginal cost is that change in the cost of an additional unit of output.