Accounting Manager Interview Questions And Answers

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Strengthen your Accounting Manager interview skills with our collection of 73 important questions. Each question is crafted to challenge your understanding and proficiency in Accounting Manager. Suitable for all skill levels, these questions are essential for effective preparation. Download the free PDF to have all 73 questions at your fingertips. This resource is designed to boost your confidence and ensure you're interview-ready.

73 Accounting Manager Questions and Answers:

Accounting Manager Job Interview Questions Table of Contents:

Accounting Manager Job Interview Questions and Answers

1 :: Explain the term account payable?

Account payable is referred as the amount company owes to its suppliers, its employees, and its partners. In other words, it is the basic cost levied on the company to run business process that is outstanding. Account payable for one company may be account receivable for another firm or company.

2 :: What is the Master Account?

A Master Account has subsidiary accounts. A master account receivable could be anything, it could be account receivable for various individual receivable accounts.

3 :: Mention what is Bank Reconciliation?

A bank reconciliation is a process done by a company to ensure that the company’s records (check register, balance sheet, general ledger account, etc.) are correct and that the bank’s records are also correct.

4 :: Explain me what is accrual accounting?

Accrual Accounting is a method for measuring the performance and position of the company by identifying economic events regardless of when cash transaction happened. In this method, revenue is compared with the expenditures, at the time in which the transaction happens rather than when the payment is made.

5 :: What is General ledger account?

The General ledger account is an account where the company records all the information for its various expenses and income types into separate accounts. Such that all the debits and credits pertaining to that particular type of transaction can be entered in one place and kept balanced.

6 :: Tell us what is working capital?

Working capital is a financial metric that calculates the resources available to the company to finance its day-to-day operations. It is typically calculated by deducting current liabilities from current assets.

7 :: What is “deposit in transit”?

A deposit in transit is a checks and cash that have been received and recorded by an entity, but which have not yet been entered in the records of the bank where the funds are deposited.

8 :: What is the disadvantage of double entry system?

The disadvantage of double entry system,

☛ If there is any compensatory errors, it is difficult to find out by this system
☛ This system needs more clerical labour
☛ It is difficult to find the errors if the errors are in the transactions recorded in the books
☛ It is not preferable to disclose all the information of a transaction, which is not properly recorded in the journal

9 :: What is ledger?

A ledger can be referred as an accounting book that keeps the record of journal entries in a chronological order to individual accounts. The process of recording this journal entries is known as posting.

10 :: What a deferred asset is and give an example?

A deferred asset refers to a deferred debit or a deferred charge. An example of a deferred charge is bond issue costs. These costs involves all of the fees or charges that an organization incurs in order to register and issue bonds. This fees are paid in a near time when the bonds are issued but it will not be expensed at that time.

11 :: Tell me what is scrap value in accounting?

It is the residual value of an asset. The residual value is the value that any asset holds after its estimated life time.

12 :: What is GAAP?

GAAP means Generally Accepted Accounting Principle; it is a framework of accounting, standards, procedures & rules determined by the professional accounting industry and practiced by publicly traded U.S companies all over the U.S.A.

13 :: What is the equation for Acid-Test Ratio in accounting?

The equation for Acid-Test Ratio in accounting

Acid-Test Ratio = (Current assets – Inventory) / Current Liabilities

14 :: Can you differentiate between consignor and consignee?

Consigner is the owner of the goods or you can say he is the person who delivers the goods to the consignee. The consignee is the person who receives the goods.

15 :: What is compound journal entry?

A compound journal entry is just like other accounting entry where there is more than one debit, more than one credit, or more than one of both debits and credits. It is essentially a combination of several simple journal entries.

16 :: What is reversing journal entries?

Reversing journal entries are entries made at the beginning of an accounting period to cancel out the adjusting journal entries made at the end of the previous accounting period.

17 :: What does the standard journal entry includes?

A standard journal entry includes, date of business transaction, name of the accounts affected, amounts to be debited or credited and a brief description of the event.

18 :: Tell me what is depreciation and its types?

By depreciation we mean that a value of an asset is decreasing as it is in use. It has two types such as “Straight Line Method” and “Written Down Value Method”.

19 :: What is trial balance in accounting?

In accounting, trial balance is an accounting report that lists the balances in each of an organization’s general ledger accounts. This is done at the end of posting journal entry to ensure that there are no posting errors.

20 :: Can you list out the Stages of Double Entry System?

☛ Recording of transactions in the journal
☛ Posting of journal entry in to the respective ledger accounts and then preparing a trial balance
☛ Preparing final accounts and closing of books of accounts

21 :: Do you know what are bills receivable?

All types of exchange bills, bonds and other securities owned by a merchant that is payable to him are said as bills receivable.

22 :: What is an over accrual?

An over accrual is a condition where the estimate for an accrual journal entry is too high. This estimate may apply to an accrual of expense or revenue.

23 :: Tell me what is the term material facts in accounting?

Material facts are the bills or any document that becomes the base of every account book. It means that all those documents, on which account book is prepared, are called material facts.

24 :: Explain me trade bills?

We know that all types of transactions need to be documented. The trade bills are the documents, generated against each transaction.

25 :: What is balancing in accounting?

Balancing means to equate both sides of the T-account i.e. the debit and credit sides of a T-account must be equal/balanced.

73 Accounting Manager Interview Questions and Answers