Top 10 Common Accounting Interview Questions with Answers

Accounting is one of the most well-liked professions. The number of students choosing commerce as a major in college and accounting-related employment is on the rise. Despite the fact that various accounting applications and software have been introduced to the market, none of them has the potential to completely replace human labour in accounting. Companies, both big and small, are looking for the finest accountants. 

There is also fierce competition for accounting-related positions. To shortlist individuals, the companies use a variety of processes. Selection of CVs, written tests, multiple rounds of interviews, group discussions, and more are all part of the process. So, if you’re a candidate or a commerce student, check out the top 10 accounting interview questions. Prepare your answers to any queries which might be asked. 

1. Tell us about yourself! 

Whether the interview is for accounting, art, medicine, or anything else, you will never attend one without being asked this question. Answering this question is not as simple as it appears. It is also an ice breaker question. You’ve already submitted your CV, and the interview panel is well-versed in all of your credentials and objectives. Explain your qualifications in relevance to the job you’re applying for. 

 Without being direct, persuade them that you are a wonderful fit for the accounting role. You might talk about your passion for accounting or any personal experiences that have influenced your interest in accounting or financial management. 

2. Why did you choose accounting as a profession? 

You might have different reasons to choose accounting as a profession. Make sure you answer this question professionally in an interview.  

Accounting is one of the most important sections of any business. It is not only about numbers and facts, it gives the opportunity to work in different fields. Also, the lessons learned in accounting and finance subjects are highly relatable to daily life too.  

3. How do you define accounting in your words and what are the different types of accounting? 

“Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof”. AICPA’s definition for accounting.  

As you are attending an interview after being a student, you may have the tendency to answer the by-hearted definition. But, pay attention to the question. As you are asked for your words, try to explain accounting in the way you conceived it.  

Different types of accounting are: Financial accounting, Cost accounting, Management accounting 

4. What is balance sheet? Name any three important terms used in a balance sheet. 

A balance sheet is one of the important financial statements of a company. It is a record of a company’s assets, liabilities, and shareholder equity. It is used to ascertain the financial position of a company on a particular date. Three terms used in a balance sheet are Accounts payable, Accounts receivable, Prepaid Expenses. 

5. Explain the different types of Inventories with examples? 

Raw materials: The unprocessed materials needed for the manufacture of the desired product. Example: Cotton for the textile industry, metals for the hardware industry 

Work in Progress: The partially finished or products under construction waiting for completion. Example: A half-assembled automobile  

Finished goods: The products which are ready for sale. Example: Vehicles, Electronic devices 

6. List out a few common accounting mistakes from a company’s side  

There are many common mistakes that people make while doing the accounts. Mention the most common ones.  

• Single account for personal and business transactions. 
• Failing to record transactions on time. 
• Not keeping the proofs of invoices, bills, etc. 
• Trying to do the calculations manually and maintaining a single record for everything. 
• Not checking the accounts in frequent intervals of time. 

7. Accounting is getting more digital and there are several applications and software to support accounting. What is your opinion about such innovations and are such applications replacing human labour in accounting? 

Accounting automation has an important role to play in the accounting process. It supports error-free and fast calculations, saves time, and in making accounting easy and simple. However, it cannot replace human force in accounting. It is an updated digital version of bookkeeping and it aids accountants to work smarter than harder.  

8. What is the full form of GAAP? 

Generally Accepted Accounting Principles 

9. Explain the latest changes introduced in Tax.

The answer to this particular question varies from place to place. You must be aware of new changes in tax, accounts, etc. At least you should have basic information about all such news. For example, if you are being interviewed by a UAE-based company, explain the new federal corporate tax introduced by UAE.  

10. Are accounting and auditing the same? If yes, how, and if no, why? 

No, accounting and auditing are related to each other but not the same. Accounting is the practice of keeping track of financial transactions. It records every transaction on time. Auditing is the process of verifying if the recorded events are correct. It determines the integrity of a company’s accounts. Any mistakes made while preparing the accounts are found while auditing.  

These aren’t the only questions asked in interviews; there are plenty more. However, many interviewers prefer to ask basic accounting questions rather than delve deeply into the subject matter. Before going to any interview, prepare yourself. Also, read the job description thoroughly before applying for any job. 

BEST OF LUCK!