Common Accounting Questions and Answers [2024]
Shir Enzer

Shir, Finance and Accounting Sector Expert at JobTestPrep.

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What Types of Accounting Questions Should You Prepare For?

Businesses and accounting firms are looking for bookkeepers and accountants who pay close attention to detail in their work. The accounting exam is designed to measure your ability to process and analyze numerical data and solve problems using logical reasoning. 

Each accounting position tests for various accounting skills, including:

Additionally, you should prove proficiency in the following platforms:

  • Excel: Ability to use formulas, functions, and features in Excel for accounting tasks.
  • Accounting Software: Understanding the features and functions of accounting software.

Employers across industries are now looking for the individual qualities of their candidates, not just technical skills. Be prepared to face Situational Judgment behavioral questions and personality tests.


Let's practice sample questions for these types.

Accounting Questions and Answers

Accounting Basics Questions

Basic accounting exam questions generally cover three main areas: Accounting Concepts, Statements, and Analysis. The very foundation of accounting is dealing with changing data elements and their sources. You will have to prove proficiency in recording, classifying, and presenting financial information and compiling it all into statements, which are further analyzed for meaningful insights. Let's see some examples.

A company has a Current Ratio of greater than one and a Quick Ratio of less than one. What would be the impact on the Current Ratio and Quick Ratio if the company pays accrued interest with cash?

A. Both ratios will increase.
B. Both ratios will remain the same.
C. The current ratio will decrease, and the quick ratio will increase.
D. The current ratio will increase, and the quick ratio will decrease.
Correct Answer
Incorrect Answer

The correct answer is D.

Accrued Interest is a current liability and cash is a current asset. Both Current Ratio (Current Assets / Current Liabilities) and Quick Ratio {(Current Assets – Inventory – Prepayments) / Current Liabilities} include the cash and accrued interest. By paying accrued interest with cash, you reduce the numerator and denominator of both the ratios by an equal amount. If you reduce the numerator and denominator by the same amount, it will increase a ratio that is greater than one and decrease a ratio that is less than one.

An additional set of ledger accounts kept outside the General Ledger for recording individual transactions for each individual debtor or creditor is known as ______ ?

A. Subsidiary Ledger
B. Control Ledger
C. Summary Ledger
D. Monitoring Ledger
Correct Answer
Incorrect Answer

The correct answer is A.

Every organization keeps an additional set of subsidiary ledgers by the name of Debtors (Subsidiary) Ledger and Creditors (Subsidiary) Ledger. These ledgers contain separate accounts for each individual debtor and creditor, respectively. A General Ledger only contains summary accounts for all the debtors and creditors by the name of Debtors Control Account and Creditors Control Account, respectively. Additional details are provided in the Subsidiary Ledgers.


 ABC Corp.'s cash account has a Cash Book balance of $1,200 as of December 31. The bank statement for this account shows a balance of $1,800 as of December 31. There are outstanding checks of $960 and a deposit in transit of $200. The bank statement shows interest earned of $40; a customer returned a check of $150, and service charges of $50. After preparing the bank reconciliation statement, the reconciled balance that will appear on the company’s balance sheet on December 31 is:

A. 1200$
B. 1800$
C. 1360$
D. 1040$
Correct Answer
Incorrect Answer

The correct answer is (D).

A bank reconciliation statement is prepared by following the two steps mentioned below.
Step 1: Adjust the balance as per the Bank Statement.

Balance as per Bank Statement as of December 31 1800$
Add: Deposit in transit 200$
Less: Outstanding Checks 960$
Adjusted Balance as per Bank 1040$

Step 2: Adjust the balance as per Cash Book.

Balance as per Company's Cash Book as of December 31 1200$
Add: Interest earned 40$
Less: Checks returned by customers 150$
Less: Service Charges 50$
Adjusted Cash Book Balance 1040$


What impact will the increased days payable outstanding have on cash flow from operating activities, assuming other things stand equal?

A. A decrease in cash inflow from operating activities
B. An increase in cash outflow from operating activities
C. No impact
D. An increase in cash inflow from operating activities
Correct Answer
Incorrect Answer

The correct answer is D.

An increase in days payable outstanding means that the business is not paying its bills quickly, and thus cash inflow from operating activities will increase.


ABC Corp. issues $10 million in 7% annual pay, 4 year bonds, when the market rate is 7.25%. The initial balance sheet liability and liability one year from the date of issue are closest to:

A. 10,000,000$ initial liability and 9,934,690$ liability one year later
B. 10,000,000$ initial liability and 10,725,000$ liability one year later
C. 9,915,795$ initial liability and 10,615,795$ liability one year later
D. 9,915,795$ initial liability and 9,934,690$ liability one year later
Correct Answer
Incorrect Answer

The correct answer is D.

The face value of the bond = $10,000,000. Annual Interest Payment = $10,000,000 * 7% = $700,000
Present value of the bond Principal = $10,000,000 (1+0.0725) ^-4 = $7,558,068
Present value of Annual Interest payment using the annuity formula =
$700,000 {[1-(1+0.0725) ^-4] ÷ 0.0725} = 2,357,727
Bond present value = $7,558,068 (Principal) + $2,357,727 (Annual Interest) = $9,915,795
Interest expense = $9,915,795 * 0.0725 = $718,895
Year-end adjustment = $718,895 - $700,000 = $18,895
Year-end debt balance = $9,915,795 + $18,895 = $9,934,690

How were these questions? Did you manage to answer correctly on most of them? or do you need more practice? These questions are out of our Accounting Assessment Practice PrepPack, which includes hundreds of additional questions to get you all set for your upcoming tests.

What else does the Accounting Assessment Practice PrepPack include?


Ledger Posting Questions

Ledger posting questions assess your ability to process and interpret information within a general ledger, record and categorize financial transactions accurately, and ensure that debits and credits are correctly applied.

Account: Accounts Payable | Account Number: 701

Date Ref Debit Credit Balance
Jan 1       1000
Jan 10 45-86-7   250 1250
Feb 1 46-08-6   125 1125
Feb 23 46-64-1 500   625
Mar 3 46-77-3   110 ?
Mar 14 46-79-7 110   625
Mar 29 46-99-3 375   250

Note: Figures are in thousands of dollars

If this account were credited, which account might be debited?

A. Cash
B. Accounts Receivable
C. Sales Revenue
D. Merchandise
Correct Answer
Incorrect Answer

The correct answer is D.

Accounts Payable will be credited when the liability increases. This would happen when an entity makes a purchase on credit.
If the entity purchases merchandise on credit they would debit Merchandise, as it is an asset which is increasing, and credit Accounts Payable.

Account: Inventory | Account Number: 702

Date Ref Debit Credit Balance
Nov 1       0
Nov 10 847-26-J 150   150
Nov 20 312-33-H   25 125
Dec 1 312-25-P 50   175
Dec 10 847-38-K   140 35

Note: Figures are in thousands of dollars

What type of account is this?

A. Fixed Asset
B. Liability
C. Revenue
D. Current Asset
Correct Answer
Incorrect Answer

The correct answer is D.

Current assets will reasonably be converted into cash within one year. Inventory is, therefore, a current asset.

Account: Interest Payable Account Number: 704

Date Ref Debit Credit Balance
Oct 1       350
Oct 23 85-LO-O 200   550
Nov 1 74-IP-K 100   450
Nov 13 34-WR-A   50 500
Nov 30 25-JS-M   75 575
Dec 14 13-BM-Z 200   375
Dec 31 50-AL-S   20 395

Which of the following occurred on November 1st?

A. The company received a loan
B. The company gave a loan
C. The company received an interest payment for merchandise bought on account
D. The company paid back the interest they owed on a bank loan
Correct Answer
Incorrect Answer

The correct answer is D.

Interest Payable is a liability account which represents the amount of money an entity owes in interest fees. Since liability accounts have normal credit balances, a credit to this account will increase its balance and a debit to this account will decrease its balance.
On November 1st we see the account is debited and the balance decreases. This can happen when a company pays back interest they owed on a loan.

Accounting Tabular Reasoning Questions

Accounting tabular questions are designed to evaluate your proficiency in financial tables, deducing underlying mathematical equations presented, and identifying patterns. Understanding and interpreting visualized data is an absolute necessity for accountants. Thus, such questions make up a big chunk of the overall test.

From the sample, how many fewer patients suffered from Bipolar disorder in 2005 than in 2000?

graph question
A. 100 patients
B. 225 patients
C. 250 patients
D. 375 patients
E. 400 patients
F. Cannot Say
Correct Answer
Incorrect Answer

In 2000, 15% of the sample (2500) suffered from Bipolar disorder= 2500 x 0.15 = 375 patients.
In 2005, 5% of the sample (2500) suffered from Bipolar disorder = 2500 x 0.05 = 125 patients.
• 375-125=250 fewer patients suffered from Bipolar disorder in 2005 than in 2000.
An additional way to do the math is simply look at the graph and note the difference in percentages between 2005 and 2000 which is 10% (15-5).
• 10% of the entire sample (2500) is 250 – and we can calculate this without making use of a calculator.

The answer is C

 The following chart describes the price ranges of different types of cars, as published in a January 2009 price list.

cars graph

Which two cars cannot be purchased at the same price?

A. A Japanese car and an executive American Car
B. A European car and a compact Japanese car
C. An American car and a compact Japanese car
D. An American car and a European car
E. Cannot Say
Correct Answer
Incorrect Answer

Answer A: Not correct since you can buy both kinds for $130 thousand.
Answer B: Not correct since you can buy both kinds for $70 thousand.
Answer C: The most expensive compact Japanese car costs $70 thousand and the least expensive American car costs $90 thousand, so there can be no overlap.
Answer D: Not correct since you can buy both kinds for any number between $140 - 170 thousand.

 Yearly Production Across All Products

  No. of market-worthy units (excluding defective ones) % of defective units from total production Total work hours per year
Product A 6347 36% 5462
Product B 2380 24% 5736
Product C 2849 23% 4270
Product D 5467 29% 3055
Product E 3620 25% 4380

*Products are examined for quality post-production.

Which product has the lowest defective units to total work hours ratio?

A. Product A
B. Product B
C. Product C
D. Product D
E. Product E
Correct Answer
Incorrect Answer

The correct answer is Product B

This question can be solved without any calculations, using the estimation technique.
The lower the numerator and the higher the denominator, the lower the ratio will be. In this case, the numerator is the number of defective units, and the denominator is the number of work hours. Therefore, you need to look for a product with a low number of defective units and a high number of work hours.
Product B has the highest number of work hours. Now look for the number of defective units:
The data in the table shows the percentage of defective units, not the absolute figures. Product B has one of the two lowest percentages, but a low percentage does not necessarily mean a low absolute number. However, we do have the absolute figures of the market-worthy units, and the smallest number does belong to Product B. Therefore, we can estimate that Product B has the lowest total number of units, which means we may assume that the low percentage of defective units also means a low absolute number.

The full calculation for Product B is as follows:
% of defective units: 24%
% of market-worthy units: 100%-24% = 76%
Number of market-worthy units: 2,380
If 2,380 are 76% of the units, the total number of units is:
2,380/0.76 = 3,131.58
Defective units are 24% of the total:
3,131.58*0.24 = 751.58

Finally, the total work hours per year is 5,736. Therefore, the ratio of defective units per total work hours is 751.58/5,736 = 0.131

The same can be done with other products. Eventually, you will see that Product B has the lowest number of defective units and the lowest ratio.

How will Accounting Assessment Practice improve your Tabular reasoning skills?

Accounting Bookkeeping Questions

These accounting questions include a wide range of topics meant to test your bookkeeping practices. From classifications and relationships of accounts through working with asset transactions and end-period adjustments. You will also be asked about different bookkeeping functions, such as inventory costing under FIFO and LIFO methods, entries for bond liabilities, and many more.

Bookkeeping demands extensive knowledge and precision, as it is an essential part of every company.

 Which of the following is not needed in the calculation of depreciation under the units-of-production method?

A. Cost
B. Residual value
C. Expected life of asset
D. Estimated total units to be produced
Correct Answer
Incorrect Answer

The correct answer is C.

Under the units-of-production method, the expected life of the asset is irrelevant because the depreciation expense is calculated based on the total units expected to be produced.

The formula used in calculating the depreciation is:

Depreciation = [(cost – residual value)/estimated total units to be produced] x actual units produced

 Which of the following financial statements shows the financial condition of the firm?

A. Income Statement
B. Balance Sheet
C. Statement of Cash Flows
D. Statement of Retained Earnings 
Correct Answer
Incorrect Answer

The correct answer is B.

The Balance Sheet is the statement that reflects a business's financial health—its liquidity and financial stability.

Choice A is incorrect because the Income Statement presents the results of operations of the business.

Choice C is incorrect because the Statement of Cash Flows presents the sources and uses of cash.

Choice D is incorrect because the Statement of Retained Earnings shows the changes that occurred in the retained earnings balance.

Accounting Payables Questions

Accounting payables questions focus on managing a company's liabilities. Within these questions, you will be asked about general concepts, transaction documentation, and analysis. These questions assess your ability to record entries accurately of various sorts, such as purchases on account and cost determination, as well as your proficiency in handling special accounts payable transactions, such as currency-denominated purchases and importations.

 On the 5th of the month, Greg Marketing pays its field sales personnel a 3% commission on the previous month's sales. Sales for March 2016 were $1,200,000. What is the entry at the end of March to record the commissions?

A. Debit Sales - 36,000$; Credit Sales Commission Expense - 36,000$
B. Debit Sales Commission Expense - 36,000$; Credit Sales Commissions Payable - 36,000$
C. Debit Sales Commission Expense - 36,000$; Credit Accounts Receivable - 36,000$
D. Debit Sales -36,000$; Credit Sales Commission Income - 36,000$
Correct Answer
Incorrect Answer

The correct answer is B.

In this case, sales commission is an expense. Hence, Sales Commission Expense should be debited. Since the commissions will be paid the following month, the account to be credited should be a liability account.

Choice A is incorrect because the expense was credited instead of debited and sales were reduced by $36,000. Sales commission is an operating expense and not a direct deduction to sales.

Choice C is incorrect because it credited Accounts Receivable.

Choice D is incorrect because it treated the commission as an income instead of an expense.

 Which of the following would require a credit entry to Accounts Payable?

a. Purchase returns
B. Purchases
C. Purchase discounts
D. payment to supplier
Correct Answer
Incorrect Answer

The correct answer is B.

The entry to record purchases on account requires debiting Purchases or Inventory and crediting Accounts Payable. A credit to Accounts Payable increases the balance of the account.

Choices A, C, and D are incorrect because purchase returns, purchase discounts, and payments to suppliers require debit entries to Accounts Payable.

Accounting Receivable Questions

 Accounting receivable questions focus on managing a company's incoming payments. They will evaluate your knowledge of general concepts, making statements, and ability to analyze accounts receivable using various ratios and techniques.

 An alternative term used for the allowance for doubtful accounts is:

A. Provision for doubtful debts
B. Endowment for doubtful debts
C. Discount of doubtful debts
D. Concession for doubtful debts
Correct Answer
Incorrect Answer

The correct answer is A

An alternative term for allowance for doubtful accounts is the provision for doubtful debts.

 Blueberry Corp. plans to tighten its credit policy. The new policy will decrease the average number of days in collection from 65 to 45, as well as reduce the ratio of credit sales to total revenue from 80% to 70%. The company estimates that projected sales will be 8% less if the proposed new credit policy is implemented. The firm’s short-term interest cost is 8%. Projected sales for the coming year are $32,000,000. Assuming a 360-day year, calculate the dollar impact on accounts receivable of Blueberry Corp. of this proposed change in credit policy.

A. 2,576,000$ increase
 B. 2,046,222$ decrease
 C. 2,9444,000$ increase
 D. 320,000$ decrease 
Correct Answer
Incorrect Answer

The correct answer is B.

The requirement is to calculate the impact of this change in policy on accounts receivable of Blueberry Corp. Under the existing policy, sales are equal to $32,000,000, 80% of which are on credit.

Therefore, the average accounts receivable balance is equal to $4,622,222 [($25,600,000 credit sales ÷ 360 days) × 65 days]. Under the new policy, credit sales are estimated to be $20,608,000 [($32,000,000 × 92%) × 70%]. Accordingly, the average accounts receivable balance under the new policy is estimated to be $2,576,000 [($20,608,000 credit sales ÷ 360) × 45 days].

Answer B is correct because the change in accounts receivable balance is estimated to be a decrease of $2,046,222 ($4,622,222 – $2,576,000).

Our Accounting Questions Practice contains 240 Bookkeeping, Payable, and receivable accounting questions and answers to help you practice and ace your accounting exam.

Financial Statment Practice Questions

Financial statements are formal recordings of the financial activities and conditions of a company, providing important information to stakeholders. These questions assess your proficiency in analyzing and interpreting such reports and conditions.

ABC Corp. purchased equipment for $60,000 on January 1, 2015. The useful life is estimated to be five years, and the salvage value is $10,000 at the end of its useful life. The company’s year-end is 31st December. What would be the depreciation expense for the year ending 31st December 2016 if the company uses the double declining method of depreciation?

A. 10,000$.

B. 12,000$.

C. 24,000$.

D. 14,400$


The correct answer is (D).

The double declining balance method is a technique of accelerated depreciation in which the majority of the depreciation expense is recognized during the first few years of the asset’s useful life. The formula for the double declining balance method of depreciation is

Book value at the beginning of the year * Straight Line rate * 2
Book Value = Cost – Accumulated Depreciation
Straight Line Rate = 1 / Useful Life (1/5 = 0.2)
Depreciation year 1 = $60,000 * 0.2 * 2 = 24,000
Depreciation year 2 = ($60,000 – $24,000) * 0.2 * 2 = $14,400


Need more Practice?

Accounting Interview Questions 

As accounting is a highly technical and analytical job, your recruitment process will most likely include technical-oriented interview questions. These include open accounting interview questions that will test whether your personality fits the position, your experience, and your technical skills.

The technical work of an accountant consists of two major areas: data analysis and using analyzed information to make decisions and solve problems. In terms of personality, you will be questioned regarding several traits:

Thoroughness, Directness, Analytical Skills, Autonomy, and Conceptual Elaboration.

The following are examples of Accounting interview questions you might encounter

  • Do you have any experience developing your own accounting process?
  • Do you have any tips for reducing human errors in accounting?
  • In one of your previous positions, describe how you decreased operational costs.
  • What is project implementation?
  • Describe a time when you collaborated with different departments across the company to ensure accurate intercompany accounting. What measures did you take to ensure effective communication and coordination?

How can you practice for accounting job interview questions?

Additional Types of Questions 

Beyond technical accounting questions, most companies include situational judgment and personality tests in their accounting exam. It provides the recruiters with an estimation of how you would fit in the company's culture and a better understanding of what kind of employee you will be. Additionally, the situational judgment questions are usually more leadership-oriented, testing your potential to advance in the company to leading roles, grow within the company, and help it grow with you.

This is why answering appropriately to such questions is equally important as answering the technical ones.

Following are situational judgment and personality questions for you to better understand what's ahead of you. Similar to previous questions, they come from JobTestPrep's Accounting Assessment Practice PrepPack, where you can find many additional questions to solve.

Situational Judgement Questions

Your team is assigned to work on a big project. Your manager meets with you, and you go over the details together and establish specific tasks that need to be done. He informs you that succeeding in this project is not only expected to increase the company’s revenue in the next few months, but it can also build the reputation of the company and bring in more customers.
How would you approach this mission?

A. Since this project is so important, I will take an active part by assigning the more crucial tasks to myself. I will use the assistance of my most experienced team members for other assignments.
B. This is an important project, and I want the team to feel involved and take responsibility. I would gather the team and introduce the project and required tasks, then let everyone choose what they want to work on.
C. This could be a good chance to practice team work. I would gather the team and ask for their ideas on the project. Then, I would assign tasks for each team member based on their skills and schedule weekly team meetings in which everyone will share their progress and we can exchange ideas.
D. This is an important task and we should start working on as soon as possible. I would send an email to the staff, introducing the project and delegating tasks to each one I would emphasize the importance of this mission and ask them to stay focused on it, putting it as a high priority. I would also encourage them to contact me if they have any difficulty.
Correct Answer
Incorrect Answer

Best response: C
Primary competency: delegation
Secondary competencies: supervising and monitoring staff performance, encouraging employees’ development, team building, resource management, planning and prioritization, decision making

Taking personal responsibility over crucial tasks (response A) may sound good, but in fact you are not using your employees. This is not a good use of resources.

In response B you involve your team – this is a good use of resources and a good chance for the team to develop. However, when you let your employees choose their own assignments, there might be a situation in which assignments are chosen based on less relevant factors, and undesirable tasks might be left unchosen.

In response C you balance personal involvement and independence of the team. You delegate tasks based on each individual’s competencies (employees’ development, use of resources) and you ask for your team’s ideas (decision making, team building) – these action increase team involvement, responsibility and independence. In addition, by scheduling weekly meetings to keep track on everyone’s progress you supervise staff performance and take supervisory responsibility over the project.

Response D demonstrates a stressful response to the situation. Your decision making is affected – you fail to meet the team, introduce the project personally and take their input. Since this project is of importance, it is important even more than usual that you follow up on your team's progress regularly and actively.

You are a department manager, and you recently devised a new procedure that you believe would improve the work process. Some of the employees in your department agree with the change, and some do not.
One of your employees openly criticizes the idea to your director.

What would you do and why?

A. You decide not to respond to the critics to avoid unnecessary conflict.
B. You reprimand the employee for going over your head to the director and working to promote your idea with even more enthusiasm.
C. You meet the employee for a talk and explain that bypassing your authority is unacceptable.
D. Employees' trust in their manager is important, so you decide to implement only some of the changes to keep your employees satisfied.
Correct Answer
Incorrect Answer

Core competency: openness to criticism, maintaining authority
Secondary competencies: influencing others, building and maintaining relationships

This item examines your ability to bring about change despite opposition. In other words, what is your approach to team management?
Let's consider each response individually:

Response A: This is a passive response that is inappropriate for a managerial role. You display a lack of important managerial skills, such as the ability to manage a team and motivate and influence them.

Response B: This is an active response: you tackle the problem head-on by approaching the problematic team member. However, the style of reaction to the situation might not result in an optimal outcome since it may cause further opposition to the upcoming changes.

Response C: This is another active response. Again, you approach the employee and address the issue of going behind your back. This response reflects your ability to be assertive while exhibiting your skills in managing a team by building good relationships. This is the best response.

Response D: Although this response offers a strong rationale (by emphasising the importance of trust), it shows a lack of managerial skills as you ignore the actions of the employee who went behind your back and "give-in" (so to speak) to the demands of some of the other employees.

Personality Questions

While technical questions have one correct answer and situational judgment has better and worse ways to respond, personality tests have a wider range of acceptable and fitting answers. We each have our own unique combinations of traits that make who we are. 

However, as should be done when applying to any job, prior research on the company's preferred behaviors and values will guide you on which traits you should better emphasize or downplay. Minimize using the neutral option as your answer to show self-understanding.

I try to do tasks correctly the first time so they don't have to be repeated over

Strongly Disagree 




Strongly Agree

I'm in command of my actions at all times

Strongly Disagree 




Strongly Agree 

Accounting Questions Practice

Our PrepPack includes 18 Accounting Practice Tests and much more:

  • Over 50 Practice Tests of different topics, including numerical skills, verbal comprehension, logical reasoning, Memory, Checking tasks, and office-related critical thinking prep.
  • Interview Prep that includes a detailed Accounting Professional Profile guide explaining the type of characteristics your future employer is most likely to value.
  • 5 SJT Supervision practice tests that will improve your skills at answering managerial situational judgment test questions.
  • Personality Test Simulation and 32 Single Trait tests to work on your weak areas.

The Accounting test PrepPack includes over 500 Accounting exam questions and answers that will help you ace your assessment and hiring process.


What Is an Accounting Aptitude Test?

An accounting aptitude test evaluates a candidate's ability to measure, process, and communicate financial information by using logical, numerical, and verbal reasoning aptitude questions.

What Are Basic Accounting Test Questions?

Basic accounting questions are questions that assess the knowledge of the applicant on basic accountant concepts.

What Are the Principles of an Accounting Assessment?
  • Revenue Recognition Principle.
  • Cost Principle.
  • Matching Principle.
  • Full Disclosure Principle.
  • Objectivity Principle.
Where Can I Find More Pre-Employment Accounting Tests with Answers?

You can find more pre-employment accounting tests with answers in the JobTestPrep preparation pack.


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