Top 100 Finance and Accounting Interview Questions

 How do we calculate income tax?

 Do you think operating profit can be more than the gross profit?
 Can you describe how Private Banking works?
 Can you differentiate between current assets & fixed assets?
 What is the difference between revenue and profit?
 Do you invest in stock markets?
 For a big MNC, what documents are covered in the Financial Statement?
 Have you heard about investment banking?
 How do you record sundry allowances in accounts?
 How many different accounting standards are there?
 In which language was accountancy first established?
 Suppose you have a balance sheet of an SME company, how will you decide
whether to finance the company or not?
 Tell me something about double entry book keeping.
 Tell us about accounts and taxation.
 What are the different types of taxes?
 What is capital budgeting?
 What is the difference between book value and market value?
 What is finance?
 What is ICWA, balance sheet?
 What is Fixed Cost, Variable Cost and Break Even point?
 What is Income tax?
 What is Indirect tax?
 What is India's Foreign Exchange Reserve?
 What is Investment Banking?
 What is liquidity?
 What is Marginal Costing?
 What is market capitalization?
 What is PE ratio?
 What is the difference between Options and Futures?
 Who invented Double Entry Book Keeping?
 What is the internal rate of return formulae
 What is the Net Present Value formula?
 What is the relation between income statement and balance sheet?
 What is the role of an auditor?
 What is turnover?
 What is value of firm?
 What is working capital account?
 Which accounting standard do we follow?
 Why is P&L account not known as profit and loss account?
 Why profit is shown on liability side of the balance sheet?
 How do you do breakeven analysis?
 How will you determine the discount rate?
 What is the full form of GAAP?
 What is direct tax?
 What is excise duty?
 What is the concept of Comparative Cost Advantage?
 Does dividend reduce profits?
 Does depreciation reduce profit?
 What is Current Ratio?
 What is the Ideal Current Ratio?
 What is Capital and Revenue Expenditure?
 Where does Goodwill appear in a Balance Sheet? Why?
 Can depreciation be on fixed assets only?
 As depreciation is to fixed assets, what is the same analogous to debtors?
 What is the fundamental accounting equation?
 What is statutory audit?
 Can you name some of the accounting firms?
 What is the difference between finance and accounts?
 What is the difference between shares and debentures?
 What do you mean by a private limited company?
 What do you mean by a listed company?
 What is 'Capital Reserve'?
 Explain the process of dissolution of a partnership firm?
 Why are some accounting systems called double accounting systems?
 What is a journal?
 What is the purpose of maintaining a subsidiary journal.
 What do you understand by Imprest amount in a petty cash book?
 What is a petty cash book?
 What is a bank reconciliation statement?
 What is weighted average cost of capital?
 What are the various methods of capital budgeting?
 What is the difference between a horizontal and vertical merger?
 What is the difference between an amalgamation and merger?
 Tell me something about nonperforming assets.
 What according to you is minority interest?
 What do you understand by Cost plus Contract?
 What do you think is the Escalation clause in contract costing?
 What according to you are the advantages of introducing a costing system in an
industrial organization?
 What is idle time and could you also explain its causes?
 Please comment on this "Limitations of financial accounting have made the
management realize the importance of cost accounting."
 What according to you is sunk cost?
 Could you differentiate between integral and non integral system of accounting?
 Essentially what is the difference between allocation and apportionment of
overheads?
 How would you treat scrap and defective items in cost accounts?
 What according to you is reconciliation of cost and financial accounts and why is it
necessary?
 What do you mean by issue of shares at premium? Also how else can you issue
shares?
 What are future maintainable profits?
 Could you discuss ABC analysis for material control?
 How is ‘bonus payable to employees’ treated in cost accounts?
 Could you tell me the difference between time keeping and time booking?
 Tell me about a situation when companies cannot issue shares on discount? What
exactly are the conditions for issue of shares at a discount?
 What according to you is the meaning of minimum subscription?
 What do you mean by rebate on bills discounted? Furthermore, how would you treat
it in the books of the bank?
 Comment on "Evolution of cost accounting is the outcome of deficiencies in the
financial accounting system."
 What according to you are the advantages of "Integrated Accounts"?
 "A company is an artificial person created by law with a perpetual succession and
common seal." Comment on the statement.