Accounting Interview Questions with Answers Set 7
Categories: Accountancy
Why do you want to join this company?
Interviewers want to know that you’re genuinely interested in working for their organization. To give a thorough answer, research the company’s website to learn more about its goals, mission, and work environment. Choose one or two things that you like the most and explain why they make you want to work for the company.
Where do you see yourself in five years?
It is a question that interviewers ask in all sectors, but in accounting, it takes on special relevance. Without a doubt, this is the perfect time to show your ambition. Therefore, try to give a modest and truthful answer in which you highlight your desire to occupy a position in the company to boost your career and serve as a key point in your career. It is ideal that you mention your strengths and weaknesses, and how you are motivated to turn your weaknesses into strengths in your career.
Share a stressful situation that you have been a part of and how you have handled the situation.
In the field of accounting and finance, you are constantly under pressure. It’s not a job to be taken lightly, which is why interviewers ask such basic accounting interview questions, just to assess your composure in times of stress. Be careful to bring up a really stressful situation and don’t worry about the work pressure they have faced on a day-to-day basis, as no one wants to hire someone who can’t handle work pressure.
Have you ever helped your company to save money or use their available financial resources effectively?
Explain if you have proposed an idea that has affected the company’s finances positively. Tell how you have optimized the process and how you came to such a decision through a historical data review.
How do you minimize the risk of making mistakes in your work?
As an accountant, you would need to showcase the highest degree of excellence, since even the smallest error can lead to chaos. When answering this question, emphasize that you are in charge of reviewing the work several times before sending it and that you have a system of pros and cons that leads you to make decisions. Do not hesitate to give an example of some occasion in which you detected an error through the double control formula.
How does OPEX differ from Capital Expenses?
OPEX is the abbreviation for operating expenses that refers to the costs a company incurs on a regular basis. But just don’t limit your response to this definition. Give numerous examples ranging from utilities, insurance, license fees, and inventory costs to property taxes.
Capital Expenses are the other costs associated with a business investment that promises benefits in the future. Some examples are real estate, upgrading furniture or exteriors of property for higher appreciation, etc.
Tell us about the importance and benefits of fixed asset register maintenance
You already know that any investment that generates income is a fixed asset. It can be property, workplace equipment, or similar.
So you can say, a fixed asset register helps a company maintain accurate accounting information for future decision-making.
Apart from that, a fixed asset register can be managed with simple spreadsheet software such as Microsoft Excel, or when the organisation is expanding, it can be easily integrated into proper accounting software. Even for a small enterprise, it can make it simpler to calculate annual depreciation.
How would you calculate the debt-to-equity ratio?
The debt-to-equity ratio is the percentage of an organisation’s debt in relation to its shareholder’s equity.
The best response would be to show your prospective employer how it is calculated through the formula:
Debt-to-equity = Total debt/Shareholder’s Equity
To add some competitive advantage, you can also mention that the higher the ratio, the higher is the organisation’s risk.
Briefly explain IFRS and why it is necessary for accounting.
IFRS stands for International Financial Reporting Standards. So, highlight your response with how this accounting framework has been issued by the International Accounting Standards Board to set common global standards.
Coming to its significance, mention that IFRS makes international capital transactions convenient through the maintenance of balance sheets and statements of profits and losses.
What are the 4 main standard requirements of IFRS?
This is a general accounting interview question. To answer, just memorise the following four basic IFRS requirements that are derived from important principles such as transparency, relevance, trustability and similitude.
- Financial Position Statement
- Income Statement
- Equity Changes Statement
- Cash Flows Statement
What is IASB?
As this is another textbook accounting interview question, simply mention that IASB stands for International Accounting Standards Board. Also mention that this privately operated body creates and sanctions IFRS and is controlled by IFRS Foundation.