Accounting Interview Questions and Answers - 2
9. What are the three types of budgeting methods?The three types of budgeting methods are:
i.) Zero-based Budgeting - In this type of budgeting there is no reference made from the previous years. The budget has to be evaluated correctly with its start from zero.
ii.) Incremental Budgeting - This is a traditional type of budgeting where the future allocation is based on current allocation and the new budget is prepared by increasing or decreasing the current budget by a certain amount.
iii.) Base Budgeting - In this type of budgeting you will know what is the amount required to keep the business or company working. This is generally prepared by companies going into a cash crunch.
10. What are Fictitious Assets?Again these questions are to know your knowledge about the accounting terms. Make sure you are familiar with all accounting concepts relevant to your position. To answer these types of questions confidently you will need to prepare well in advance.
Fictitious assets are assets which are not tangible. We cannot see or touch them. These assets represent actual cash expenditure but do not have tangible existence. They are written off against the firm's earnings in more than one accounting period.
11. Were you able to reduce the cost for your previous employer?The role of the accountant is to track expenditure, prepare taxes, keep records, and prepare financial reports. One of the important responsibilities is to reduce costs and improve the overall savings of the company wherever possible.
While attending the interview make sure you have a few examples ready where you were able to reduce costs for the company.
You can say something like: "As an accounts executive, I do not have a lot of experience in reducing costs. However, for one of our clients, I was able to identify a few cost-reduction strategies which helped them to reduce their equipment financing cost that in turn helped them decrease the overall burden on the company."
12. How have you monitored the regulations that affect your position?It is very important to keep up with the laws in most of the industries. The interviewer is interested in knowing how you keep yourself updated with the regulations. They would like to know do you attend seminars, or follow a leader or have you subscribed to any email updates to keep yourself updated.
To answer this question you can say something like: "I enjoy reading economic magazines and keep a regular check on regulatory bodies. This helps me keep myself updated and gives me a clear understanding of any changes in the regulations. I also follow news and updates by the governing bodies."
13. Are you able to explain a complex financial process to members who are not familiar with them?The interviewer would you this question to see if you are able to communicate with the audience who are not familiar with the accounting and financial process. As an accountant, you will come across people who rely on you to get information related to finance.
To answer this question you can say something like: "As an accountant, I have learned to adapt to the needs of the people. I try and communicate in a way that is easily understandable. I try to avoid complex terms and give them easy examples so that one can understand properly. If at all I am using any complex terms I make sure I explain to them the meaning of the term in a simple and easy manner."