20 must-know
MNC Accountant
Interview
Questions and
Answers
PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
01 What is working capital?
Working capital = Current Assets – Current
Liabilities. It shows a company’s short-term
financial health.
02 What is depreciation?
Depreciation is the allocation of the cost of a
tangible asset over its useful life, reflecting
wear and tear.
03 What is a trial balance?
It is a statement listing all ledger account
balances to verify that total debits equal total
credits.
CA RUPA JAIN DAGA
04 What is the difference between
accounts payable and accounts
receivable?
Accounts Payable: Amounts owed to suppliers
(liability).
Accounts Receivable: Amounts due from
customers (asset).
05 What is accrual accounting?
Revenue and expenses are recorded when
earned or incurred, not when cash is
exchanged.
CA RUPA JAIN DAGA
06 What are the three main financial
statements?
Balance Sheet
Income Statement (P&L)
Cash Flow Statement
07 What is deferred tax asset?
It arises when the company pays more tax
than needed in a given year and can use it to
reduce tax in future.
08 What is deferred tax liability?
It is when the company pays less tax now but
will have to pay more in the future due to
timing differences.
CA RUPA JAIN DAGA
09 What is goodwill?
Goodwill is an intangible asset representing the
premium paid during acquisition for brand,
customer base, etc.
10 What is the matching principle?
Expenses should be recorded in the same
period as the revenues they helped to
generate.
11 What is a capital expenditure?
Money spent to acquire or upgrade long-term
assets like property, plant, or equipment.
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12 What is revenue expenditure?
Daily operating expenses like salaries, rent, and
utilities that do not create future benefits.
13 What is a provision?
A liability of uncertain timing or amount, like
provision for bad debts or tax.
14 What is a ledger?
A book or system that contains all accounts
and their balances after recording
transactions.
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15 What is prepaid expense?
Payment made for future services, treated as an
asset initially and expensed over time.
16 What is the difference between
gross profit and net profit?
Gross Profit = Sales – COGS
Net Profit = Gross Profit – Operating Expenses
– Taxes – Interest
17 What is a contingent liability?
A possible future liability depending on
uncertain events, disclosed in notes to
accounts.
CA RUPA JAIN DAGA
18 What is retained earnings?
The cumulative net profits kept in the business
after dividends are paid.
19 What is the dual aspect concept?
Every transaction has two sides – debit and
credit – keeping the accounting equation
balanced.
20 What is a suspense account?
A temporary account used when the
classification of a transaction is uncertain,
later adjusted correctly.
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