Accounting Interview Questions

Accountants are extremely important employees of any organization. Though their job profile involves many, behind-the-curtains duties, their timely execution of duties keeps the organization functioning. There are several different types and sub-types of accountants, who are involved in indifferent duties, such as accountants for credit, record and analyze the credit related activities of the organization. Investment accountants keep up the different investment related records and staff accountants are in charge of all staff related financial transactions.

Accounting Interview Questions to Ask

Since the field is quite vast and dynamic and with every accounting concept having a different effect on the books of accounts and the financial condition of the company. The following are some of the questions that one can ask during the interview.

Common Questions
The following are some random questions that can be asked to the candidate to evaluate his competency as an accountant and also get to know his perception of the field of accountancy.

• Why have you chosen accountancy as your career?
• Which accounting software, are you familiar with?
• Will be able to work over-time as the financial year-end approaches? (Answer should be yes, though it won't be exactly necessary.)
• Would you like to work over-time as the financial year-end approaches? (Logical answer is 'I wouldn't have to because I have a habit of keeping all books undated and true to fact'.)
• After you come back from grocery shopping, do you immediately put all the things into the refrigerator or cupboard? (logical answer should be 'yes')
• What time did you arrive for this interview? (Answer: perfectly in time)
• Would you be able to prepare books of accounts by using just a set of papers and a pen? (If the answer is yes, then you have a very good candidate sitting in front of you)
• Do you read the business section of the newspaper everyday?
• Given a choice, would you prefer a salary from under the table, without any deductions and taxes? (Yes is the worst answer that can be given.)
• Would you compromise on the quality to get larger quantity of production? (Logical answer should be no.)

Entry-Level Questions
The above mentioned questions were generalized in nature and would give you an impression about the person's aptitude and seriousness towards maintaining punctuality towards the accounting functions. The following are some questions, that would help you to test the knowledge of the person.

1. What is the meaning of Dr and Cr in the ledger books and what is the effect of one transaction on each column?
The terms Dr and Cr stand for 'debit recorded' and 'credit recorded' and are widely used in the double entry system. Any kind of expenditure and loss is recorded on the debit side and whatever is gained or profited during the transaction goes to the credit side.

2. From the point of view of the company, what is better VAT tax or sales tax?
VAT tax is better than sales tax because, in spite of the compliance involved the taxpayer needs to only pay what value has been added into the product. Another advantage is that VAT can get the company valuable tax credit.

3. What is better, timely payment of installment to a lender out of a bank account, or casual reserve, or a late payment?
The answer in this situation can be tricky to interpret, but a payment out of a reserve if inflow of cash in near future is assured, is better than late payment. But if inflow is not assured then late payment is a better choice.

In order to ask better questions, you can also consult an accountant or a financial expert in the company. The only quality that you must watch out for is a combination of punctuality and a good knowledge base.