Are you looking to shoot your career in the field of accountancy and crack the entry level accounting interview questions. So, this blog will probably help you to get a job and crack any sort of interview that is related to accounts and finances. Furthermore, this will give you an idea about the type of questions that are asked in each of these interviews.
The interview can be tough for those who do not have an experience or who have newly graduated from the university. I hope these questions might rescue you from such an interview and be a lifesaver.
If you have just graduated from a university pursuing the courses relating to accounts and finance and want a career boost in the field of accounts. Then here are some entry level accounting interview questions. These questions will help you a lot to crack those interviews and give your career that boost that you always are waiting for. So, let’s get started with the entry level accounting interview questions. What to put on a resume
Entry level Accounting interview questions
What is included in the Assets side of the balance sheet
Assets are economic resources that are acquired with a view to producing economic benefits for its owners. Assets can be buildings, machinery, and other forms of assets used to produce economic benefits they can be patents or copyrights that provide financial advantages for their holder. Let us begin with a look at some of the important items of assets that exist.
Major items of current assets are cash, marketable securities, inventories, receivables, and accruals. Current assets are assets that are usually converted into cash within one year. The form of the current asset goes on changing from one item to another item and finally, it is converted into cash. Bondholders of the firm closely monitor a firm’s current assets since interest payments are generally made from current assets.
- Cash is known and liked by all, just because it is readily spendable. It is the most basic current assets. In addition to currency, bank accounts without restrictions, checks, and drafts are also considered cash due to the ease in which one can turn these instruments into currency whenever it is required.
- Cash equivalents i.e., marketable securities are not cash but can be converted into cash so easily that they are considered equal to cash. Cash equivalents are generally highly liquid, short-term investments in nature such as government securities and money market funds. We can consider treasury bills issued by the Nepal Rastra bank on behalf of the government as cash equivalent in Nepal.
- Accounts receivables represent money customers owe to the firm. As more and more the firm’s current asset goes on changing from one item to another item and finally it is converted into cash. Sales are generally made in credit instead of cash. The amount of account receivable increases as credit sales increase.
- Inventory is the stock of raw materials; work in process and finished goods. Apart from its firm needs to maintain the inventories of supplies required to facilitate production etc. A retail firm’s inventory generally will consist only of finished products purchased that have not been sold yet.
Apart from above sometimes firms may have current assets in the form of accrued income which is already earned but yet to receive.
Fixed or long-term assets are divided into several categories. The following are some of the common items of fixed assets.
- Fixed assets are those assets with a useful life greater than one year. Generally, fixed assets refer to items such as equipment, buildings, production plants other property, etc. Depreciation is subtracted from all fixed assets except land. Fixed assets are very important to a company because they represent long-term illiquid investments that a company expects will help it in generating revenue. Fixed assets can be classified into two broad groups, i.e., tangible and intangible. All those fixed assets which are physically present and visible are called tangible assets.
- Intangible assets are non-physical assets such as copyrights, goodwill, patents, etc. Often there is no ready market for them, though it is purchased and sold occasionally.
What is included in the Liabilities side of the balance sheet
Liabilities are obligations a company owes to outside parties. They represent the rights of others to money or assets of the company. For examples bank loans, payable to suppliers, its employees, etc. On the balance sheet, liabilities are generally broken down into current liabilities, long-term liabilities, and share capital.
- Current liabilities are those obligations that usually mature within the year, such as accounts payable, interest on long-term debts, taxes payable, dividends, and other accruals.
- Long-term liabilities are those, which matures within a period longer than one year. It usually refers to long-term loans taken by the firm. Payment of interest and principal of such loan is made as per loan agreement or the clauses mentioned in the bond indentures. These loans are often paid in installment. If this is the case, the installments to be paid off in the current year are considered a current liability.
- Shareholder’s equity generally reflects the amount of capital the owners invested plus any profits that the company has generated and is subsequently retained in the company. Shareholder’s equity may be classified into two types as Shareholder’s equity on the basis of book value and on the basis of market value.
Why do you see accounts as your career?
Answer: This question seems simple and easy but mind you it has a very hidden secret that the employer will want to know about you. This question judges your passion for the profession. If this career is always your passion then you can give one hundred percent in your job whatsoever. If you can give all your hard work and sweat to the company.
Then, the company itself will be eager to hire you as an employee and wish that you can do the best for them. If you are passionate about what you do then you can work without any problems and mistakes. So, you must answer very carefully about why you choose accountancy as a career. You can answer like I am good with the number and I am passionate about keeping the nooks of accounts properly. Since accountants are the pillar of the business.
accounting interview questions to ask
Is there any problem for you to work under the finance manager?
Answer: I would love to work under my finance manager or accounts manager. As it is the best and a great opportunity for me to learn accounts and finances. Since my senior has all those experience I will work so hard and earn a bit of such experience that will gove my career growth. Moreover, It will also help the company in its smooth operation as well. I am here for learning and give my output.
Can you work under the senior accountant and follow his/her guidance?
Answer: I can work under the senior. Since I have just graduated from university and I have no experience in the field of accountancy and finance. It is a great learning opportunity for me. I will learn all the facts relating to accounts and how the work is done, I will help him/her in any of the ways possible and provide the good for the company.
Difference between the journal voucher entry and the contra voucher entry?
Entry Level Accounting Interview Questions
Answer: There are conceptual differences between the journal voucher entry and the contra vouchers entry. A Journal voucher is used to book all the expenses or income whereas the contra voucher is used to payoff or receive the outstanding balances that are shown in the journal entry. If I have to elaborate and give an example in this matter. Journal entry is the first entry that creates a ledger further.
Journal entry is responsible for recording all the expenses in the books of accounts. As its double entry will be passed in the payment or contra vouchers. If I had to simplify, the booking entry is made in the journal entry. For example: If I had to book rental expenses of rs. 10,000. Then I will have to pass a journal entry which will be rent expenses a/c debit 10,000 to rent payable 10,000. On the other hand contra entry is passed to record the cash and banking transactions. Such as entry for cash received in bank and cash deposited in a bank.
Journal entry to book the advertisement expenses of Rs. 50,000
Advertisement expenses. a/c debit 50,0000
To expenses payable a/c 50,000
In case of contra entry, cash deposited in bank 50,000
Bank a/c debit 50,000
To cash A/c 50,000
staff accountant interview questions and answers
In which accounting software that you have worked in? And name some of the accounting software that you have heard about?
Entry Level Accounting Interview Questions
Answer: I know how to work in quick books properly. I have learned how to use this software at my university. As my professors teach us the basics of quick books on how to pass entries. Moreover, I can create the reports and overall financial statements required by the company through this software. During my internship at PWC, I have also worked in the software namely Xero. I know how to use this software very well.
I can do everything with this software. Further, If this company uses other accounting software other than quick books and Xero. I am eager and open up to learning the new accounting software. Being a quick learner and with good academic grades. I can learn the new software easily without hampering the companies day to day operations.
Further i have heard about the following accounting software as well.
- MYOB Essentials.
- ZOHO Expense.
- Avid Xchange.
- Sage Intacct.
- Big Time.
- NetSuite ERP
- Free Agent
- Zoho Books
- Sage business cloud accounting.
- Sage 50 cloud.
I have not worked in all the accounting software. But since I am a fast learner I can learn about all the accounting software fast. Since different companies have different accounting software. It would not be a big problem if you don’t know specific accounting software.
Furthermore, The thing that really matters is how you are clear about the accounting concepts. If you can pass all the journal entry, contra entry, and payment entry in a good manner then it will not be a problem. I will give my all to learn that software all soon as possible.
How will you manage and achieve the tasks in time and manage the strict deadlines?
Entry Level Accounting Interview Questions
Answer: In order to meet the deadlines, I would keep a checklist for every work and do it on time. Moreover, Preparing the checklist will allow me to finish the task at the right time without hampering the other works in the office of the working place. So, The checklist will do every good that is allowed to do in the company.
Can you meet and achieve tight deadlines?
Answer: Yes I can meet the tight deadlines. Would prioritize the work according to its importance. I would follow the time management skills. Moreover, I would manage time by doing all the works on time without procrastination. So, in this way, I can meet deadlines and finish the work on time.
Where do you see yourself in the next 5 years as your career growth?
entry level accountant interview questions
Answer: This question can be a tricky question to some extent. Also, to answer this question you have to be a little bit cautious. You must be careful that you don’t say directly that ” I don’t know”. This will show that you are not serious about your career.
Therefore, You have to say that after five years I see myself as an accounts manager or a managing director of a company. It determines how ambitious you are. It creates the finds the pattern of how serious you are about your career. Therefore, you have to answer this question with courage that reflects your passion and urge to do something in life.
Entry Level Accounting Interview Questions
What is working capital?
Working capital is the capital that is used in the operating of the business in day to day transactions. Moreover, The working capital is calculated as current assets less current liabilities.
Working capital(WC)= Current Assets(CA)- Current Liabilities(CL)
The current assets include cash, bank, receivables, etc. The current liabilities include payables and short term debts.
Questions to ask an accountant
What is an error? Explain the types of error?
The error is the mistake in the books of accounts that occur due to carelessness or after not knowing the facts. The types of accounting error are as follows:
- Omission Error: It occurs when the transaction is not recorded.
- Commission Error: This type of error occurs when the transaction is incorrectly calculated.
- Principle Error: This type of error occurs when the accountant lacks the proper concept of generally accepted accounting principles (GAAP), Accounting standards, or auditing standards.
- Compensating Error: This type of error occurs when once the error is compensated by another error.
Are you a team worker or a sole runner?
Answer: I love working in a team. As teamwork is very important in anything that you work in. Team works lead to the successful completion of tasks. If you walk alone one work which will complete working in a team in 10 days will take 30 days working alone. So we should always work in a close team together.
Explain Real accounts and nominal accounts?
Real accounts are used for assets and liabilities. For instances land, buildings, vehicle, etc. The basic rule for a real account is what comes in debited and what goes out credited. one of the examples of real account would be. Purchased building for 10,00,000
Building acount debit 10,00,000
To cash account 10,00,000
Nominal accounts are used for income and expenses. The basic rule of nominal accounts us expenses and losses are debited and income and gains are credited. One of the examples for the nominal account would be;
Advertisement expenses 10,000
Advertisement expenses a/c debit 10,000
To party 10,000
Rental income received 10,000
Party a/c debited 10,000
To rental income 10,000
Tell me the basis of accounting? and explain as well
There are two basis of accouting:
- Cash basis of accounting: Under the cash basis of accounting, revenues are recognized when the cash is paid furthermore, the expenses are recognized once the payment is made for the expenses. The simple concept of the cash basis of accounting is to recognize the income and expenses on the basis of received and payments.
- Accrual basis of accounting: Under the accrual basis of accounting, the revenues are accounted once the revenue is earned and expenses are recognized when the expenses are consumed.
In conclusion to this, Above mentioned questions are some frequently asked question in the entry level accounting interviews. I hope these might have helped you to crack a job. Until then see you in the next blog.
Do not forget to leave your valuable comment in the comment section below. We admire and appreciate each and every comment that you share.
Until next blog Ta Da!
Also See: What to put on a resume