Your Interview Date becomes Easy When you have Accounting Interview Questions in Mind
Accounting jobs are extensively easy to land on because almost all companies in the world have accounts departments that deal with cash inflow and outflows. Accounting is also a professional job where professionals are tasked with keeping the company on the move by ensuring all its financial obligations and other financial needs are handled. Accountants are also those individuals who will tract the company’s financial position over time and can tell whether the company is advancing towards the right direction or not. If you have been invited for such a position, then it is important for you to have sketches of accounting interview question you may meet along the way.
Outline three financial statements and explain them?
This is a question that forms the basis of accounting both as a profession as the basis of business. There are three main financial statements crucial for businesses that you need to be aware of. In fact, if you went for a legitimate accounting school or course, then you must have heard about these three statements. The three statements are the balance sheet, the cash flow statements and the income statements. When you ever come face to face with such a question, make sure that you list the three statements first before explaining them one by one. In so doing the interviewer will see that you know them and may not follow up on your later explanations.
Is there any need to be worried when there is a $10 hike in the income statement inventory?
This is one of the common but tricky question but you need to be aware of the fact that such a change in the statement inventory, one must not raise alarm or worry too much because the only possible effect will be seen in the balance sheet and in the cash flow statement. You need to answer by talking about the later effects only.
What does negative working capital mean in a business setting?
When asked this question, the most appropriate answer is to give a scenario first then go ahead with the explanation. You can give an example of a business where customers pay upfront before being given services of goods. Such a business include a grocery store where customers will pay for the whole month then pick products on daily basis. Then go ahead and explain that negative capital means a business entity receives money before the need to pay the suppliers arises. However, in other companies, a “negative” means the company could be plunging into a financial problem.
What is a deferred revenue?
This is a simple question but show them that you can add the meat to the answer rather than just defining. The most appropriate answer is that deferred revenue are basically accruals that are not recorded as revenue but will be done so the following day or so. Add the fact that deferred revenue must be recorded as a liability if a balance sheet will be produced before the revenue has been posted.