Accounting Interview Questions For Freshers
  1. What is double-entry bookkeeping?
  2. How do you calculate gross profit?
  3. What is the purpose of a trial balance?
  4. What is a chart of accounts, and why is it important?
  5. What are accounts receivable and accounts payable?
  6. Explain the concept of depreciation.
  7. How do you calculate the current ratio?
  8. What is the difference between revenue and profit?
  9. Explain the role of financial statements in accounting.
  10. How does a debit entry differ from a credit entry in accounting?
  11. Explain how to calculate the net present value of a project.
  12. How do you use a T-account to record transactions?
  13. Explain the difference between a balance sheet and an income statement.
  14. How do you calculate the cost of goods sold using the FIFO method?
  15. Explain the concept of accounts payable aging.
  16. What is the purpose of a cash flow statement?
  17. How do you calculate the return on assets (ROA) ratio?
  18. Explain how to calculate the current yield on a bond.
  19. What is the role of the general ledger in accounting?
  20. How do you calculate the debt-to-asset ratio?
  21. What is the difference between a cash sale and a credit sale?
  22. How do you calculate the net present value of a project using the discounted cash flow method?
  23. Explain the difference between tangible and intangible assets.
  24. What is the role of a trial balance in the accounting process?
  25. How do you calculate the gross margin ratio?
  26. What is the difference between a general journal and a general ledger?
  27. Explain how to use the accounts receivable turnover ratio to analyze a company's financial performance.
  28. How do you account for inventory using the LIFO method?
  29. What is the purpose of a statement of changes in equity?
  30. Explain the difference between tangible and intangible assets, and provide examples of each.
  31. How do you calculate the net present value of a project using the discounted cash flow method, and what factors are considered in this calculation?
  32. What is the role of a trial balance in the accounting process, and how is it used to identify errors?
  33. How do you account for inventory using the LIFO method, and what are the advantages and disadvantages of using this method?
  34. What is the purpose of a statement of changes in equity, and how does it differ from a statement of retained earnings?
  35. Explain how to calculate the gross margin ratio, and how it can be used to evaluate a company's profitability.
  36. How do you account for a prepaid expense, and how does it impact the financial statements?
  37. What is the difference between a general journal and a general ledger, and how are they used in the accounting process?
  38. How do you calculate the debt-to-equity ratio, and what does it indicate about a company's financial health?
  39. What is the difference between a current asset and a long-term asset, and how are they reported on the balance sheet?
Accounting Intermediate Interview Questions
  1. What are the different types of financial statements?
  2. What is the purpose of the balance sheet?
  3. How do you calculate return on investment (ROI)?
  4. What is the difference between cash accounting and accrual accounting?
  5. How do you calculate the debt-to-equity ratio?
  6. What is a general ledger, and how does it work?
  7. Explain the difference between cost of goods sold (COGS) and operating expenses.
  8. How do you calculate working capital?
  9. What is the difference between book value and market value?
  10. What are the steps involved in the accounting cycle?
  11. How do you calculate the break-even point using the contribution margin method?
  12. Explain the difference between straight-line depreciation and accelerated depreciation methods.
  13. What is the purpose of a statement of retained earnings?
  14. How do you account for a bad debt expense?
  15. Explain how to use the indirect method to prepare a statement of cash flows.
  16. How do you calculate the future value of an investment using the compound interest formula?
  17. What is the difference between variable costing and absorption costing?
  18. Explain how to use the FIFO and LIFO methods to calculate cost of goods sold and ending inventory.
  19. What is the purpose of the accounting equation?
  20. How do you account for a long-term investment in equity securities?
  21. How do you calculate the economic order quantity (EOQ)?
  22. What is the difference between a horizontal and a vertical analysis of financial statements?
  23. How do you calculate the weighted average cost of inventory using the periodic method?
  24. What is the purpose of a pro forma financial statement?
  25. How do you account for a stock option plan?
  26. What is the difference between a financial lease and an operating lease?
  27. How do you calculate the price-earnings (P/E) ratio?
  28. What is the purpose of the statement of comprehensive income?
  29. Explain how to use the present value formula to calculate the present value of an annuity.
  30. How do you account for a contingent asset?
  31. How do you calculate the economic order quantity (EOQ), and what factors are considered in this calculation?
  32. Explain the difference between a horizontal and a vertical analysis of financial statements, and how they can be used to evaluate a company's financial performance.
  33. How do you calculate the weighted average cost of inventory using the periodic method, and how does it differ from the weighted average cost using the perpetual method?
  34. What is the purpose of a pro forma financial statement, and how can it be used in financial planning?
  35. How do you account for a stock option plan, and what are the accounting implications of granting options to employees?
  36. What is the difference between a financial lease and an operating lease, and how are they reported on the balance sheet?
  37. How do you calculate the price-earnings (P/E) ratio, and what factors are considered in this calculation?
  38. What is the purpose of the statement of comprehensive income, and how does it differ from the income statement?
  39. Explain how to use the present value formula to calculate the present value of an annuity, and provide an example.
  40. How do you account for a contingent asset, and what are the criteria that must be met for a contingency to be recognized in the financial statements?
Accounting Interview Questions For Experienced
  1. What is the purpose of a statement of cash flows?
  2. What are the different methods of inventory valuation?
  3. Explain the concept of deferred revenue.
  4. How do you calculate the weighted average cost of capital (WACC)?
  5. What is the difference between financial accounting and managerial accounting?
  6. What is the purpose of ratio analysis?
  7. Explain the concept of goodwill.
  8. How do you account for leases under the new lease accounting standards?
  9. What is the difference between a budget and a forecast?
  10. How do you determine the cost of capital for a project?
  11. What are the different methods of cost accounting?
  12. Explain the concept of EBITDA.
  13. How do you account for employee benefits and pensions?
  14. What is the difference between GAAP and IFRS?
  15. What is the purpose of an audit?
  16. How do you account for intangible assets?
  17. Explain the concept of present value.
  18. How do you calculate net present value (NPV)?
  19. What is the purpose of financial ratios?
  20. How do you calculate the break-even point?
  21. What is the difference between direct and indirect costs?
  22. How do you account for revenue recognition under ASC 606?
  23. Explain the concept of a deferred tax asset and liability.
  24. How do you account for foreign currency transactions?
  25. What is the purpose of a cost-benefit analysis in accounting?
  26. Explain the difference between a capital lease and an operating lease.
  27. How do you account for a stock split?
  28. What is the purpose of a sensitivity analysis in financial modeling?
  29. How do you calculate the expected return and standard deviation of a portfolio?
  30. Explain the difference between a contingent liability and a provision.
  31. How do you account for a merger or acquisition using the purchase method?
  32. What is the purpose of the DuPont analysis in financial statement analysis?
  33. How do you calculate the internal rate of return (IRR) of a project?
  34. Explain how to use the Monte Carlo simulation method in financial modeling.
  35. What is the difference between a cash dividend and a stock dividend?
  36. What is the difference between the perpetual inventory system and the periodic inventory system?
  37. Explain how to use the Black-Scholes option pricing model.
  38. How do you account for a derivative instrument?
  39. What is the difference between a callable bond and a putable bond?
  40. How do you calculate the modified internal rate of return (MIRR)?
  41. Explain how to use the discounted cash flow model to value a company.
  42. How do you account for a research and development (R&D) project?
  43. What is the purpose of the Statement of Financial Accounting Standards (SFAS) 116?
  44. How do you account for a foreign subsidiary under the current accounting standards?
  45. Explain the difference between a forward contract and a futures contract.
  46. What is the difference between the perpetual inventory system and the periodic inventory system, and how do they impact a company's accounting procedures?
  47. Explain how to use the Black-Scholes option pricing model, and what assumptions are made in this model.
  48. How do you account for a derivative instrument, and what are the accounting implications of using derivatives for hedging purposes?
  49. What is the difference between a callable bond and a putable bond, and how do they impact a company's financial statements?
  50. How do you calculate the modified internal rate of return (MIRR), and how is it used to evaluate a project's profitability?
  51. Explain how to use the discounted cash flow model to value a company, and what assumptions are made in this model.
  52. How do you account for a research and development (R&D) project, and how are R&D costs treated on the financial statements?
  53. What is the purpose of the Statement of Financial Accounting Standards (SFAS) 116, and how does it impact nonprofit organizations?
  54. How do you account for a foreign subsidiary under the current accounting standards, and what are the accounting implications of foreign currency transactions?