10 technical accounts interview questions

for freshers
How well do you know your accounting concepts?
Are they on the tips of your fingers, or do you
struggle when recalling basic definitions? You
have to brush up on your course material and
make sure you can answer all the accounts
interview questions. To give you an idea of
what to expect, here are some samples.
1. What can you tell us about balance
sheets?
They are the lifeline of any productive
organisation. A balance sheet is an important
accounting document which contains the
liabilities, assets and equity of a company during
a particular period.
2. Who uses ‘tally accounting’?
It is an ERP software used by small businesses
such as shops for recording various functions
such as daily transactions, inventories and
salaries.
3. How well do you understand working
capital?
A company needs cash on a regular basis to carry
out its daily transactions and operations.
Accountants calculate the working capital as the
difference between the current assets and
liabilities.
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4. Do you know the difference between
accounting and auditing?
Accounting maintains official records about a
company’s financial situation through balance
sheets, statements and reports.
Auditing is the process which verifies if a
company’s accounting records are accurate.
5. Define double-entry bookkeeping.
This is an accounting practice where every
transaction is recorded in two separate accounts
— credit and debit.
6. What are the three types of
accounting?
Financial accounting — documents every single
financial transaction that occurs within the
company.
Managerial accounting — uses accounting data to
create strategic plans for the company.
Cost accounting — tracks the specific costs of
products and services to calculate the company’s
earnings and expenses.
Also Read – Master Financial Accounting: Unlock
Career Success with Essential Skills
7. Which accounting standards are
familiar to you?
The accounting standards used in India are:
 IndAS
 Indian GAAP
 IFRS
It helps to know one or more of the above
standards before you apply for an interview.
8. Explain GST in simple words.
The goods and services tax is a domestic
consumption tax added during purchase. It
ensures that tax is paid and collected through a
simplified process.
Currently, there are five tax slabs — 0%, 5%,
12%, 18% and 28%.
9. What is the basic accounting
equation?
Assets = Liabilities + Owner’s equity
10. Define revenue transaction.
These are transactions that have a short-term
impact
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Common HR-based accounts interview

questions
Besides the technical round of the interview, you
may also have an appointment with the HR
manager. They are going to analyse you to see if
you are a good fit for the company. Here are a
few pointers to handling HR-related accounts
interview questions.
1. Why did you choose accountancy
after college?
Three factors should influence your answer:
 Your interest or passion in the subject.
 Your skills with numbers, statistics and
accounting methods.
 Your personality traits, such as analytical
thinking, self-organisation, etc.
2. What is your work ethic like?
You need to maintain a fine balance here. Don’t
paint yourself as the next Mother Teresa but
don’t undersell yourself either. Keep it real.
You can talk about your past commitments, how
well you work in a team or how you handle
deadlines. Draw from your experiences. If you
haven’t worked before, you can discuss your
college projects. They want to know if you are an
efficient and reliable professional who won’t
cause them any grief later.
3. Are you a team player?
There is only one answer here. Yes, of course,
you are. However, you do need to prove it.
Narrate an anecdote of how you work well with
others, whether during a college festival or a
team sports event. The idea is to reassure them
that you won’t hinder the smooth functioning of a
department with any ego hassles.
4. How do you ensure your work is free
of errors?
Relax. The HR executive doesn’t expect you to
possess computer-like qualities. They only want
to know if you are diligent and thorough when
checking your work. You need to convince them
that you always check and verify all facts and
numbers before submitting them for review.
5. Do you have any questions for us?
This is a golden opportunity for you to clear
doubts and make a significant impression on the
recruiter. Here are some intelligent questions to
ask.
 Are there any existing challenges within the
accounting department that I should know
of?
 What are the company’s objectives/goals for
the coming year?
 Which accounting software systems do you
use?
 What qualities do you look for during
promotion time?
 What happens next in the interview process?

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A quick checklist for your interview

Here are some pointers to help you professionally
answer an accounts interview questions.
1. Communicate effectively
 Speak in clear and concise sentences.
 No slang, jargon or unnecessary word fillers.
 Use appropriate emotional cues when talking.
 Avoid over-dramatising.
2. Posture
 Sit with your back straight or aligned with the
chair back.
 Don’t fold your arms.
 You can mirror the interview’s posture or
stance if you are unsure.
3. Presentation skills
 Appear confident and sure of yourself.
 Don’t over-gesticulate. Keep your hands
within arm’s length distance.
 Maintain professional body language
throughout the interview.
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Accounting Interview Questions And

Answers
Regardless of the organisation and area, here are
some common questions you can expect with
tips and examples on how to answer them:
 Why did you choose accounting as a
profession?
 What are different types of accounting?
 Which accounting software are you familiar
with? Which one is the best according to you?
 What is GST?
 What is VAT?
 What are the key financial statements in
accounting?
 Why do you want to join this company?
 What is a double entry?
 What is a debit and credit note?
 What do you know about a balance sheet?
How is it prepared?
 What is a bank reconciliation statement?
 What is the difference between depreciation
and amortisation?
 How are accounting and auditing different?
 What are GAAP standards, and what are
accounting standards accepted universally
and in India?
 Give a suggestion to improve the company’s
working capital flow.
 What are the factors affecting the cash flow
of the company?
 What is contingent liability? What is bad
debt?
 What is cost accounting?
 What are internal controls and why are they
important in accounting?
 How is automation affecting accounting?
Related: 48 Accounting Assistant Interview
Questions (With Answers)
1. Why did you choose accounting as a
profession?
Ans: This question gauges your interest
in accounting. Show your passion and motivation,
detail your relevant skills, and discuss your
career progression and plans to demonstrate
sincerity.Example: I believe that accountants
make a significant contribution to any
organisation and improve its fiscal condition. This
job will provide me with the highest job
satisfaction because it will give me a sense of
purpose since I have been interested in working
with numbers for a long time. This career will
enable me to utilise my numerical skills to their
full potential.Related: How to Answer the
"Why Accounting?" Interview Question
2. What are different types of accounting?
Ans: This question is often asked to test your
deep knowledge about different accounting
types. In response to this question, explain each
accounting types in two to three
lines.Example: There are 5 types of accounting:
financial accounting, administrative accounting,
tax accounting, cost accounting and
management accounting.
 Financial Accounting – This branch
records, summarises and reports business
transactions over a specific period in an
organisation and is important in both the
private and public sectors.
 Administrative Accounting – This branch
focuses on the administrative aspects of the
company, assessing the achievement of
objectives and improving strategy. It is
important for forecasting and planning
actions and resources.
 Tax Accounting – This branch registers and
prepares reports related to tax returns and
tax payments to the public treasury.
 Cost Accounting – This branch is more
relevant for industrial companies, providing a
detailed analysis of production, sales and
overall production process costs.
 Management Accounting – This branch
has a broader scope than cost accounting,
recording all economic and financial
information to aid in short-term and long-
term decision-making.
3. Which accounting software are you
familiar with? Which one is best according
to you?
Ans: Interviewers ask this question to check if
you are aware of all the different accounting
software available in the market. It is important
to provide a critical analysis of your preferred
software and explain that you are willing to learn
different programs.Example: I have worked with
many software programs in my previous jobs.
The software I used most was Microsoft Excel,
Tally, Tally.ERP 9, Freshbooks and Zoho Books. I
do not consider any of them to be the best, but I
am also planning to learn QuickBooks. Its user
interface is simple and allows me to focus on
accounting tasks instead of switching between
menus and fields.
4. What is GST?
Ans: This question checks if you are familiar with
the recent development and changes in the
taxation policies implemented by the
government. It is a straightforward question, but
try to add some extra information about the term
in one or two sentences to make the answer
more effective.Example: GST stands for Goods
and Services Tax, effective from July 1, 2017. It is
a destination-based form of indirect taxation,
which replaced many different indirect taxes,
VAT, excise duties and octroi on value addition.
5. What is VAT?
Ans: This questions test your knowledge about
different taxes. When answering the question
explain the meaning of VAT in
brief.Example: VAT, or value-added tax, is a
consumption tax applied to a product's sales
price, representing the added value during its
production stage.Related: 10 Potential GST
Interview Questions With Sample Answers
6. What are the key financial statements in
accounting?
Ans: A candidate's understanding of key financial
statements in accounting can be assessed by
their ability to clearly and accurately explain
each one. They should show a solid grasp of the
purpose and content of each
statement.Example: The key financial
statements in accounting are:
 Income Statement: Shows a company's
revenues, expenses, gains and losses over a
specific period, revealing net income or loss.
 Balance Sheet: Provides a snapshot of a
company's financial position at a specific
point in time, listing assets, liabilities and
equity.
 Cash Flow Statement: Details the inflows
and outflows of cash from operating,
investing and financing activities, assessing
the company's cash generation and financial
obligations.
 Statement of Changes in Equity: Displays
changes in equity accounts over a period,
including capital investments, net income or
loss, dividends and other comprehensive
income, reconciling beginning and ending
equity balances.
7. Why do you want to join this company?
Ans: Interviewers want to see your genuine
interest in their organisation. Research the
company's website to learn about its goals,
mission and work environment. Highlight one or
two things you like most and explain why they
attract you to the company.Example: I applied
for this position only after researching your
organisation. The work ethic in your company is
a perfect fit for my way of working. I also found
that the vision of the company to diversify its
business activities aligns with my goal of
handling different types of accounting
responsibilities. As an accountant, I would be
able to contribute more and broaden my
horizons.
8. What is double entry?
Ans: Double entries are a common accounting
process that employers might ask about
regardless of your experience level. It is most
common for interviewers to ask them for entry-
level jobs, but they might ask a mid- or senior-
level candidate to see how they explain simple
concepts. It is important to memorise the
terminology used in this profession so you can
answer this question
accurately.Example: Double entry is a system of
bookkeeping where every credit entry in an
account requires a corresponding and opposite
debit entry in a different account. So, the sum
total of all credits is equal to the sum total of all
the debits.
9. What is a debit and credit note?
Ans: This question helps interviewers to test your
knowledge about the basics. When responding to
this question, explain the meaning of debit and
credit note in two to three lines.Example: A
debit note is an intimation sent to a business
associate indicating that their account will be
debited for a specified reason. Conversely, a
credit note is an intimation sent to a business
associate indicating that their account will be
credited for a specified reason.
10. How do you prepare a balance sheet?
Ans: This question is a common entry-level
interview question. The interviewers check if you
know the basics and if you can create a balance
sheet in the absence of any accounting
software.Example: At the end of a financial year,
the company journal is closed with entries up to
that particular date. These journal entries are
posted in the corresponding ledger accounts, and
accounts are tallied to prepare the final balance
sheet of assets and liabilities.
11. What is a bank reconciliation statement
and what are the factors affecting it?
Ans: Bank reconciliation statements are now
mostly automated, but interviewers still want to
know that you understand how they work.
Refresh your memory on basic concepts, like
bank reconciliation statements, to show you
know how to review them and get any needed
information.Example: A bank reconciliation
statement is a summary of matching entries in
bank statements of a company with its balances
in the cash book. The factors affecting it are:
 Interest received from the bank but not
entered in the company's cash book
 Cheques issued but not presented in the
bank
 Dishonoured cheques
12. What is the difference between
depreciation and amortisation?
Ans: This is a very specific question to check your
detailed knowledge of this subject. You can
define both terms and give examples to
showcase your level of
understanding.Example: Depreciation is the loss
of value of tangible assets, like furniture and
fixtures, machinery, buildings, computers and
electronic material. Amortisation is writing off
intangible assets, such as patents, loans and
goodwill.
13. How are accounting and auditing
different?
Ans: When responding to thie question explain
the basic meaning of the two terms in contrast
with each other.Example: Accounting involves
recording and managing a business's daily
financial transactions. Auditing, on the other
hand, focuses on reviewing and verifying the
accuracy of these financial records. While
accounting is an ongoing process, auditing is
periodic and aims to ensure the correctness and
compliance of financial reports.
14. What are GAAP standards and what are
the other accounting standards accepted in
India and abroad?
Ans: This question tests your knowledge of
different accounting standards. You can just
name them, or explain these in detail with any
differences if you are feeling
confident.Example: GAAP stands for generally
accepted accounting principles set by the
Financial Accounting Standards Board.
Companies in the United States must follow
these standards. In India, companies must follow
the Indian Accounting Standard set by the
Accounting Standards Board.Related: 7
Behavioural Questions For An Accounting
Interview
15. Give a suggestion to improve the
company’s working capital flow.
Ans: This is one of the generic interview
questions. Some industries like electronics,
telecommunication work with negative working
capital. Do some reaserch before answering this
question.Example: I believe managing stock is
key to improving working capital. Unlike debtors
and suppliers, stock is within our control.
Delaying payments can harm business
relationships, and holding excessive liquidity has
an opportunity cost. Effective inventory
management, avoiding over-stock, and
maintaining high stock turnover can significantly
enhance working capital.
16. Which factors affect the cash flow of the
company?
Ans: Cash flow differs from trading companies,
manufacturing entities and government
undertakings. You need to modify your answer
based on where you are applying.Example: Cash
flow depends on the type of corporation. Trading
companies generate income from trading
activities. Manufacturing outlets generate
revenues through sales of products. Government
undertakings receive different grants from the
government, which form their main source of
income. The common factors affecting any cash
flow are day-to-day operations, investments,
financing operations and inventory.
17. What is contingent liability? What is bad
debt?
Ans: These two terms may seem similar, but they
are very different. Interviewers want to know you
can make the distinction, so make sure to provide
a detailed answer.Example: Contingent liability
is an outcome of an event that may or may not
happen. It is not an actual liability, so it is not
included in the balance sheet. Instead, it is
reported as a footnote. Bad debt is the amount
considered as not receivable at all in the future,
and is written off with permissions at a suitable
date.Related: What Are Contingent Assets?
(Definition And Examples)
18. What is cost accounting?
Ans: Cost accounting is one of the advanced
concepts in accounting. If you are applying in a
service- or product-based company, you should
prepare to answer this question.Example: Cost
accounting is a way of determining the final price
of products or services by considering the
expenses incurred in their production.
19. What are internal controls and why are
they important in accounting?
Ans: When responding to this question, show that
you can clearly explain the importance of internal
controls for ensuring accurate financial records
and the overall financial well-being of the
organisation.Example: Internal controls in
accounting are policies and procedures designed
to protect assets, ensure accurate financial
information, promote legal compliance and
prevent fraud. They are important for
maintaining data integrity, minimising errors and
reassuring stakeholders.
20. How is automation affecting
accounting?
Ans: This is tricky question to test your
intelligence about the evolving technologies in
this field. When answering this question, display
that you are well aware that automation will not
take away your jobs, but will make it
better.Example: Automation can streamline
accounting processes by reducing manual data
entry, minimising errors and speeding up routine
tasks. It enables real-time financial reporting and
analysis, improving decision-making and
efficiency. Automation also enhances accuracy
and consistency in financial records, allowing
accountants to focus on strategic
tasks.Related: Accounting Questions and
Answers for an Interview
Accounting Interview Questions In Different
Sectors
Accounting interview questions are usually
related to the specific organisation and area. For
example, interviewers from a trading company
ask about goods in transit. Examiners working in
a manufacturing company ask about purchases
of raw material and finished products.
Government or public agencies ask about
contingent liabilities and types of taxes. Interview
questions from non-governmental organisations
(NGOs) are about tax calculations because these
are non-profit legal entities. You have to modify
your responses according to the role. Your
answers should be brief, but they should cover all
the important details about the topic.Please note
that, at the time of this article's writing, the
companies, institutions or organisations
mentioned in this article may or may not be
affiliated with Indeed, and their mention in this
article does not imply a business relationship
with Indeed.