top 20 interview questions and answers for b.com students

 TOP20 INTERVIEW QUESTIONS AND ANSWERS FOR B.COM STUDENTS 2020

Are you looking for commonly asked accounting interview questions for an upcoming interview? There is a lot of competition in the job market nowadays for the position of accounting and you need to be well-prepared. This article will list some of the common accounting interview questions along with answers to help you ace it.

Accounting is an important part of any organization and they usually hire someone who has good knowledge in the field. It is popularly known as the language of business and is core to the growth of an organization. If you want, you can improve your skills with a professional accounting certification.

Interviewers are likely to cover all the basics of accounting interview questions which require a thorough understanding of accounting principles to answers correctly.

Here are some of the top accounting interview questions which are generally expected:

Q1. How many types of business transactions are there in accounting?

Ans. There are two types of business transactions in accounting – revenue and capital.

Q2. Explain real and nominal accounts with examples.

Ans. A real account is an account of assets and liabilities. E.g. land account, building account, etc.

A nominal account is an account of income and expenses. E.g. salary account, wages account, etc.

Q3. Which accounting platforms have you worked on? Which one do you prefer the most?

Ans. Describe the accounting platforms (QuickBooks, Microsoft Dynamic GP, etc.) that you have worked with and which one you liked the most.

Q4. What is double-entry bookkeeping? What are the rules associated with it?

Ans. Double-entry bookkeeping is an accounting principle where every debit has a corresponding credit. Thus, the total debit amount is always equal to the total credit. In this system, when one account is debited then another account gets credited at the same time.

Q5. What is working capital?

Ans. Working capital is calculated as current assets minus current liabilities, which is used in day-to-day trading.

Q6. How do you maintain accounting accuracy?

Ans. Maintaining the accuracy of an organisation’s accounting is an important activity as it can result in a huge loss. There are various tools and resources which can be used to limit the potential for errors to creep in and address quickly if any errors do arise.

Q7. What is TDS? Where do you show TDS on a balance sheet?

Ans. TDS (Tax Deducted at Source) is a concept aimed at collecting tax at every source of income. In a balance sheet, it is shown in the assets section, right after the head current asset.

Q8. What is the difference between ‘accounts payable (AP)’ and ‘accounts receivable (AR)’?

Ans.

Accounts Payable	Accounts Receivable
The amount a company owes because it purchased goods or services on credit from a vendor or supplier.	The amount a company has the right to collect because it sold goods or services on credit to a customer.
Accounts payable are liabilities.	Accounts receivable are assets.

Q9. What is the difference between a trial balance and a balance sheet?

Ans. A trial balance is the list of all balances in a ledger account and is used to check the arithmetical accuracy in recording and posting. A balance sheet, on the other hand, is a statement that shows the assets, liabilities, and equity of a company and is used to ascertain its financial position on a particular date.

Q10. Is it possible for a company to show positive cash flows and still be in grave trouble?

Ans. Yes, if it shows an unsustainable improvement in working capital and involves a lack of revenue going forward in the pipeline.

Q11. What are the common errors in accounting?

Ans. The common errors in accounting are – errors of omission, errors of commission, errors of principle, and compensating error.

Q12. What is the difference between inactive and dormant accounts?

Ans. Inactive accounts are which are closed and will not be used in the future. Dormant accounts are not currently functional but may be used in the future.

Q13. Are you familiar with the Accounting Standards? How many accounting standards are there in India? [Frequently asked accounting interview question]

Ans. There are currently 41 Accounting Standards which are usually issued by the Accounting Standards Board (ASB).

Q14. Why do you think Accounting Standards are mandatory?

Ans. Accounting Standards play an important role in preparing a good and accurate financial report. It ensures reliability and relevance in financial reports.

Q15. Have you ever helped your company to save money or use their available financial resources effectively?

Ans. Explain if you have proposed an idea which has affected the company’s finances positively. Tell how you have optimized the process and how you came to such a decision through historical data review.

Q16. If our organisation has three bank accounts for processing payments, what is the minimum number of ledgers it needs?

Ans.Three ledgers for each account for proper accounting and reconciliation processes.

Q17. What are some of the ways to estimate bad debts?

Ans. Some of the popular ways of estimating bad debts are – the percentage of outstanding accounts, aging analysis, and percentage of credit sales.

Q18. What is deferred tax liability?

Ans. Deferred tax liability signifies that a company may pay more tax in the future due to current transactions.

Q19. What is a deferred tax asset and how is the value created?

Ans. A deferred tax asset is when the tax amount has been paid or has been carried forward but has still not been recognized in the income statement.The value is created by taking the difference between the book income and the taxable income

Q20. What is the equation for Acid-Test Ratio in accounting?

Ans. The equation for Acid-Test Ratio in accounting

Acid-Test Ratio = (Current assets – Inventory) / Current Liabilities