2025 Accounting Interview Prep: Freshers’ Questions Explained
Here are 40 common accounting interview questions and answers for freshers: General Accounting Questions What is accounting? Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business to help stakeholders make informed decisions. What are the golden rules of accounting? Personal Account: Debit the receiver, credit the giver. Real Account: Debit what comes in, credit what goes out. Nominal Account: Debit all expenses and losses, credit all incomes and gains. What is the difference between accounts payable and accounts receivable? Accounts Payable: Money a company owes to suppliers or creditors. Accounts Receivable: Money owed to the company by customers for goods or services. What are the types of accounting? Financial Accounting Management Accounting Cost Accounting Tax Accounting Forensic Accounting What are assets and liabilities? Assets: Resources owned by a company (e.g., cash, inventory, equipment). Liabilities: Obligations or debts owed to others (e.g., loans, accounts payable). Common accounting interview questions and answers for freshers: What is a trial balance? A trial balance is a statement that lists all the ledger account balances to check if total debits equal total credits. What is depreciation? Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. What is the difference between cash and accrual accounting? Cash Accounting: Revenue and expenses are recorded when cash is received or paid. Accrual Accounting: Revenue and expenses are recorded when they are earned or incurred, regardless of cash flow. What is a journal entry? A journal entry records financial transactions in the accounting system, showing debits and credits. What is the accounting equation? Assets = Liabilities + Owner's Equity. Practical Knowledge Questions What is the purpose of a balance sheet? A balance sheet provides a snapshot of a company’s financial position, showing assets, liabilities, and equity at a specific point in time. What is the difference between a ledger and a journal? Journal: Records transactions chronologically. Ledger: Summarizes journal entries into individual account balances. What is goodwill? Goodwill is an intangible asset that represents the value of a company’s brand, reputation, or customer base. What are prepaid expenses? Prepaid expenses are payments made in advance for goods or services to be received in the future. What are contingent liabilities? Contingent liabilities are potential obligations dependent on future events (e.g., lawsuits, guarantees). Software and Tools Have you worked with accounting software? As a fresher, I have theoretical knowledge of tools like Tally, QuickBooks, and Excel, and I am eager to learn any specific software used in your company. What is ERP in accounting? ERP (Enterprise Resource Planning) integrates various business processes, including accounting, into a unified system. What functions of Excel are useful for accounting? VLOOKUP, HLOOKUP Pivot Tables SUMIF, COUNTIF Macros Conditional Formatting What is Tally? Tally is an accounting software widely used for financial management, GST compliance, payroll, and inventory management. What is bank reconciliation? Bank reconciliation compares the company's financial records with the bank statement to ensure consistency. Behavioral Questions Why did you choose accounting as a career? I enjoy working with numbers and problem-solving, and accounting offers opportunities to contribute to a company’s financial success. How do you handle tight deadlines? By prioritizing tasks, using time management techniques, and staying focused on the most critical work. How do you ensure accuracy in your work? By double-checking calculations, using accounting software, and maintaining organized records. Describe a situation where you worked in a team. During my college project, I collaborated with my peers to create a mock financial report, which taught me teamwork and attention to detail. How do you handle feedback? I view feedback as an opportunity to grow and improve my skills. Situational and Problem-Solving Questions How would you rectify an accounting error? Identify the error. Pass a rectification entry. Ensure the corrected entry balances the accounts. What would you do if your balance sheet doesn’t balance? Recheck journal entries and ledger balances. Verify trial balance figures. Look for errors like omitted transactions or misposted amounts. How do you manage confidential financial data? By adhering to company policies, using secure systems, and maintaining professionalism. How would you handle a discrepancy in a financial report? Investigate the source of the discrepancy. Cross-check entries and supporting documents. Resolve the issue and report findings to the supervisor. What steps would you take to improve a company’s cash flow? Monitor accounts
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