Top 30 Accounting Interview
- infojobsansaar
- Mar 6
- 3 min read
Updated: Mar 9
1. What is Accounting?
Answer: Accounting involves recording, classifying, summarizing, and reporting a business's financial transactions.
2. What are the Golden Rules of Accounting?
Answer:
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
3. What is the Accounting Equation?
Answer: Assets = Liabilities + Equity. It indicates that a company's resources are financed by liabilities or owner's equity.
4. What is a Journal Entry?
Answer: A journal entry is the initial step in recording a financial transaction within the accounting system.
5. What is a Ledger?
Answer: A ledger is a book or record where all journal entries are organized into specific accounts.
6. What are Assets?
Answer: Assets are resources owned by a business that hold economic value, such as cash, buildings, and equipment.
7. What are Liabilities?
Answer: Liabilities are obligations or debts that a business owes to others.
8. What is Equity?
Answer: Equity represents the owner's stake in the business after liabilities are deducted.
9. What is the Difference Between Accounts Payable and Accounts Receivable?
Accounts Payable | Accounts Receivable |
Money the company owes | Money customers owe |
Liability | Asset |
10. What is Depreciation?
Answer: Depreciation is the systematic allocation of a fixed asset's cost over its useful life.
11. What are Methods of Depreciation?
Answer:
Straight Line Method
Written Down Value Method
Units of Production Method
12. What is Accrual Accounting?
Answer: Revenue and expenses are recorded when they occur, not when cash is received or paid.
13. What is Cash Accounting?
Answer: Transactions are recorded only when cash is received or paid.
14. What is Working Capital?
Answer: Working Capital = Current Assets – Current Liabilities.
15. What is a Trial Balance?
Answer: A trial balance is a list of all ledger accounts and their balances to verify the accuracy of accounting records.
16. What are the Three Main Financial Statements?
Answer:
Balance Sheet
Income Statement (Profit & Loss)
Cash Flow Statement
17. What is a Balance Sheet?
Answer: A balance sheet displays a company's financial position at a specific date.
18. What is an Income Statement?
Answer: It reveals the company's revenues, expenses, and profit over a period.
19. What is a Cash Flow Statement?
Answer: It details cash inflows and outflows from operating, investing, and financing activities.
20. What is Bank Reconciliation?
Answer: It involves matching the bank statement balance with the company’s cash book.
21. What is a Provision?
Answer: A provision is an estimated liability for future expenses or losses.
22. What are Prepaid Expenses?
Answer: Expenses paid in advance for future periods, such as prepaid insurance.
23. What are Accrued Expenses?
Answer: Expenses that have been incurred but not yet paid, like salary payable.
24. What is Capital Expenditure?
Answer: Expenditure that provides benefits for more than one year, such as purchasing machinery.
25. What is Revenue Expenditure?
Answer: Expenses incurred for daily business operations, like rent and electricity.
26. What is Bad Debt?
Answer: An amount owed by a customer that is unlikely to be collected.
27. What is TDS?
Answer: Tax Deducted at Source is the tax deducted when making certain payments like salary, rent, or professional fees.
28. What is GST Input and Output Tax?
Input GST | Output GST |
Tax paid on purchases | Tax collected on sales |
29. What is Internal Control?
Answer: Procedures and processes designed to protect company assets and ensure accurate financial reporting.
30. What is Materiality in Accounting?
Answer: Materiality refers to the importance of financial information that could affect decision-making.
✅ Interview Tip: Always support answers with practical examples like:
Balance sheet reconciliation
Accrual entries
Bank reconciliation
Expense accruals
Fixed asset depreciation
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