Interview question for accountant pdf

Understand this with examples here Three Golden Rules of Accounting with examples. They are Real , Personal and Nominal but wait.. Real — All assets in business either tangible or intangible classify as real accounts.

Personal — Accounts related to a person, entity or any legal body, etc. There is no scope for leaving this one out from any list of finance and accounting interview questions. The reason why you will never see depreciation being charged on land is that land has an infinite useful life. Without knowing how many years a fixed asset will last depreciation cannot be charged. Amortization is only done for Intangible assets, unlike depreciation which is for tangible assets.

Reduction in value by prorating the cost of an intangible asset over multiple accounting periods is called amortization. Example — A small-sized technology company Unreal Corp. If you may wish to deep dive into the topic here is our detailed article on Amortization with an example. This one also stands tall among top finance and accounting interview questions asked in technical rounds by hiring managers.

This is another very common question asked in finance and accounting interviews, especially with entry-level roles. Again, follow the i. Income Statement — It presents a summarized view of revenue, income, profit, and loss of a particular accounting period. Cash Flow Statement — It shows the movement of cash and cash equivalents for a business during an accounting period. Capital is a Personal Account as it belongs to an individual or a firm owner.

Here is our detailed article on Capital along with its Journal Entry here. They are written off in multiple future accounting periods. Examples — Preliminary expenses, promotional expenses of a business, discount allowed on the issue of shares, the loss incurred on issue of debentures, etc. When a business decides to give goods in charity it also needs to account for those goods in the appropriate financial statement s , in this case, purchases are reduced with the exact cost of goods donated.

When a business wants to advertise a new product or a new line of product it may decide to distribute free samples to the customer. The reduction in the value of a tangible fixed asset due to normal usage, wear and tear, new technology or unfavourable market conditions is called Depreciation. The median salary for the 1. How do you make that happen?

To begin, consider what the hiring manager is trying to find. Trust me; they have a perfect candidate in mind. What you need to do is position yourself as close to that ideal as possible, while ensuring you remain genuine and honest. Good accountants are often critical-thinkers with superior math skills and strong communicators with prior experience using key pieces of software. Candidates with time management and organizational skills are always going to be favored, as well as those who can work well as part of a team but also handle their responsibilities independently.

Having an understanding of relevant laws and regulations is also critical. The best way to do this, is by going over your accountant job description with a fine tooth comb. But these frequently seem like the trickiest ones to answer. Technically, there is no right or wrong answer. Nailing behavioral interview questions typically requires a two-step approach. With that approach, you can turn your interview answers into compelling stories, making them a lot more engaging than your typical response.

If you want your response to stand out like take it up a notch with our Tailoring Method. In fact we we wanted to let you know that we created an amazing free cheat sheet that will give you word-for-word answers for some of the toughest interview questions you are going to face in your upcoming interview.

After all, hiring managers will often ask you more generalized interview questions along with their accountant specific questions! Now that you have a strategy to answer accounting interview questions, you might be feeling pretty pumped. It will require an adjustment entry in the books of accounts to reflect this in the financial statements.

Accrued Income is an income which has been earned, but has not been recorded in the books of accounts presently. Similar to accrued expenses, an adjustment entry will be required in this case too. There is some more explanation on Accruals along with a couple of examples here. It is an account which is used to reduce or offset the value of an associated account. It holds the opposite sign for a particular type of account. If an account has a debit balance e. The opposite is true for a liability account.

Read more on Contra Account with more details and examples. When a proprietor withdraws cash or goods from its own business for personal use it is termed as drawings. It reduces capital invested and is a temporary account which is cleared at the end of each accounting period. Almost all compilations of finance and accounting interview questions include at least one question on BRS, this topic is deemed important.

Bank Reconciliation Statement or BRS refers to a statement which is made to reconcile bank balance shown on the bank statement or passbook with the bank balance shown in the cash book. Both internal source i. Another one among the list of commonly asked finance and accounting interview questions is Deferred Revenue Expenditure.

It is an expenditure which is revenue in nature and incurred during an accounting period, but its benefits are to be derived from a number of following accounting periods.

The part of the amount which is charged to the profit and loss account in the current accounting period is reduced from the total expenditure and the rest is shown on the balance sheet as an asset. Example — A small business spends 1,50, on advertising which is unusually large for them. The benefits from it are expected to be derived over 3 years so the company decides to divide the expense over 3 yearly payments of 50K.

This type of expense is amortized. Be ready for this question in accounting interviews for roles related to Accounts Payable and Accounts Receivable. Debit Note — When a buyer returns goods to the seller, he sends a debit note as an intimation to the seller of the amount and quantity being returned and requesting the return of money.