Introduction
If you are preparing for a Junior Accountant interview, it’s a good idea to review the most common questions that employers usually ask. These questions cover both technical accounting knowledge and soft skills such as accuracy and organization. In this article, you will find the Top 20 Junior Accountant Interview Questions with Simple Answers that will help you prepare confidently.
1. What are the main duties of a junior accountant?
Answer: Recording transactions, reconciling accounts, assisting with reports, and supporting senior accountants.
2. What is the difference between debit and credit?
Answer: Debit increases assets or expenses, while credit increases liabilities or revenue.
3. What is the accounting equation?
Answer: Assets = Liabilities + Equity
4. What is the difference between accounts payable and accounts receivable?
Answer:
- Accounts Payable (AP): Money the company owes to suppliers.
- Accounts Receivable (AR): Money owed to the company by customers.
5. What is a trial balance?
Answer: A statement that lists all ledger balances to check whether total debits equal total credits.
6. How do you reconcile bank statements?
Answer: Compare company records with the bank statement and resolve any differences, such as outstanding checks or bank charges.
7. What are accruals and prepayments?
Answer:
- Accruals: Expenses incurred but not yet paid.
- Prepayments: Payments made in advance for future expenses.
8. How do you handle errors in accounting entries?
Answer: Identify the error, reverse or correct the wrong entry, and document the adjustment.
9. What accounting software have you used?
Answer: Examples include Tally, QuickBooks, SAP, Zoho Books, and MS Excel.
10. How do you ensure accuracy in your work?
Answer: By double-checking entries, reconciling accounts regularly, and following accounting procedures carefully.
11. What is the difference between cash basis and accrual basis accounting?
Answer:
- Cash Basis: Records transactions only when cash is received or paid.
- Accrual Basis: Records income and expenses when they are earned or incurred, regardless of cash movement.
12. What is depreciation and why is it important?
Answer: Depreciation is the allocation of the cost of a fixed asset over its useful life. It helps match expenses with revenue and shows the true value of assets.
13. Can you explain double-entry accounting?
Answer: Every transaction affects two accounts: one debit and one credit, ensuring the accounting equation stays balanced.
14. What are adjusting entries?
Answer: Adjusting entries are made at the end of an accounting period to record revenues earned and expenses incurred that haven’t yet been entered in the books.
15. What is the difference between a balance sheet and an income statement?
Answer:
- Balance Sheet: Shows a company’s assets, liabilities, and equity at a specific date.
- Income Statement: Shows revenues and expenses over a period, resulting in profit or loss.
16. What is petty cash?
Answer: Petty cash is a small amount of cash kept on hand for minor expenses, like office supplies or transportation.
17. What are internal controls in accounting?
in financial reporting.
18. What is working capital?
Answer: Working Capital = Current Assets – Current Liabilities. It shows the company’s short-term financial health and ability to cover obligations.
19. How do you prioritize multiple tasks with tight deadlines?
Answer: By organizing tasks by urgency, using checklists or software tools, and maintaining clear communication with the team.
20. Why do you want to work as a junior accountant?
Answer: Because it provides the opportunity to apply accounting knowledge, learn from experienced professionals, and build a strong career path in finance.
Conclusion
Preparing for an accounting interview can feel challenging, but practicing these 20 common questions and answers will boost your confidence. Remember to tailor the answers to your own experience, highlight your attention to detail, and show your willingness to learn and grow in the accounting field.