Accounting interview questions with answers – UAEHelper.com blog article
Everyone wants a job and they want to become successful and if you also want to pass an accounting interview questions then don’t worry because if you studied well and you know all the concepts of accounting then you can easily pass the interview and get the job. Indeed, the biggest mistake candidate occurs in the interview is that they are nervous and they cannot reply to the questions properly. If you want a job then the first thing you should build in yourself is confident because if you have confidence then you can simply answer all the questions. Some of the famous questions accounting interview questions in Dubai are as follows:
Q1) Walk me through the three financial statements.
This is the most common question asked by the interviewer to the candidates and the main purpose of this question is to check the little knowledge of accounting. You should simply answer three financial statements of accounting, explain about the balance sheet, income statement and cash flows.
Q2) If I had only one statement and wanted to review the overall health of a company, which statement would I use and why?
The company checked the following things before hiring a person, they also checked that the person can work in this company or not and to check this they asked complex questions to them but you don’t have worry about anything and be confident and answer calmly to all the questions of the interviewers. This question answers that you should use the cash flow because it is a complete picture of the company’s cash and you can simply check all the details of the transaction and everything.
Q3) What will happen with income statement if inventory increases by $10?
This type of tricky question is asked by the interviewer and you don’t have to get nervous because the answer is simple that nothing happened to the income statement, all the effects of the inventory directly go to the cash flow and balance sheet.
Q4) What is working capital?
If you are thinking that accounting interview questions only depend upon general knowledge then you are wrong because they can ask all the questions and even definitions of the word. The purpose of this question is to check whether you know the working capital or not. You should simply answer the question that working capital is defined as the current assets less than current liabilities.
Q5) What does have negative working capital mean?
If you are going in an interview then you should be prepared for all the things because the interviewer can ask you any questions regarding the accounting, general knowledge or about you. You just have to be prepared in a way that you are confident enough that you manage all the situations and give answers to all the questions. This the pure accounting question and this should be answered in the way the negative capital defined as the red alert for the company and it is signal that company is going to face huge losses.
Q6) What’s the difference between deferred revenue and accounts receivable?
Accounting interview questions are very complex and the only way to pass this interview is to be well prepared. This is the common difference asked by the interviewer and you should answer this question but make sure that your answer must depend upon real things and try to explain the situation with the example. The major difference between the deferred revenue and accounts receivable is that deferred revenue is defined as the cash received by the customers and the accounts receivable is defined as the cash in hand from the customer.
Q7) When will you capitalize instead of expensing a purchase?
Before applying the job to the accounting company, you should revise all the topics of the accounting and make sure that you know everything about accountings because the questions in the interview are based on the theory. This is the question asked to check the interest of the candidate to the job whether the person is interested in the job and he has clear concepts of accounting or not. The answer to this question is simply that if you used the purchase in the business industry for more than a year, it will turn into capital.