Accounting Interview Questions with
Answers
1. What are the different types of accounting?
Ans. Financial Accounting – This branch of accounting records, summaries and reports the
business transactions that take place over a time period in an organization . It is required in both
the private and public sectors.
Administrative Accounting – Administrative accounting is focused on the administrative
aspects of the company and is used above all to assess the fulfillment of the established
objectives and improve the implemented strategy. It is very useful for making forecasts and
planning the actions and resources to be used.
Tax Accounting -Tax accounting helps to register and prepare reports related to tax returns to
the public treasury and payment of taxes.
Cost Accounting – This type of accounting is more focused on companies of an industrial
nature. It helps to make a detailed analysis of the unit costs of production, sales, and, in general,
the production process that the company carries out.
Management Accounting – Management accounting has a broader vision than cost accounting
since it records all the economic and financial information of the company to be able to make
short-term and long-term decisions.
2. What is working capital?
Ans. Working capital is calculated as current assets minus current liabilities, which is used in
day-to-day trading .In a simple accounting scheme, the concept of working capital focuses on the
capital resources that a given company can count on in the short term to operate. These resources
owned by the company are the cash, the portfolio of financial products, and other investments
made by the company.
3. What is TDS? Where do you show TDS on a balance sheet?
Ans. TDS (Tax Deducted at Source) is a concept aimed at collecting tax at every source of
income. In a balance sheet, it is shown in the assets section, right after the head current asset.
Answers
1. What are the different types of accounting?
Ans. Financial Accounting – This branch of accounting records, summaries and reports the
business transactions that take place over a time period in an organization . It is required in both
the private and public sectors.
Administrative Accounting – Administrative accounting is focused on the administrative
aspects of the company and is used above all to assess the fulfillment of the established
objectives and improve the implemented strategy. It is very useful for making forecasts and
planning the actions and resources to be used.
Tax Accounting -Tax accounting helps to register and prepare reports related to tax returns to
the public treasury and payment of taxes.
Cost Accounting – This type of accounting is more focused on companies of an industrial
nature. It helps to make a detailed analysis of the unit costs of production, sales, and, in general,
the production process that the company carries out.
Management Accounting – Management accounting has a broader vision than cost accounting
since it records all the economic and financial information of the company to be able to make
short-term and long-term decisions.
2. What is working capital?
Ans. Working capital is calculated as current assets minus current liabilities, which is used in
day-to-day trading .In a simple accounting scheme, the concept of working capital focuses on the
capital resources that a given company can count on in the short term to operate. These resources
owned by the company are the cash, the portfolio of financial products, and other investments
made by the company.
3. What is TDS? Where do you show TDS on a balance sheet?
Ans. TDS (Tax Deducted at Source) is a concept aimed at collecting tax at every source of
income. In a balance sheet, it is shown in the assets section, right after the head current asset.
