Revenue Accountant Interview Questions UK: 8 Real Questions and What Interviewers Want

Most Revenue Accountant interviews in the UK follow a pattern, and knowing it beats guessing. Below are eight questions from our bank of 12, each with a note on what the interviewer is really after.

Eight Revenue Accountant interview questions, and what the interviewer is thinking

1. How do you decide whether revenue should be recognised over time or at a point in time under IFRS 15?

Why they ask: To test the core judgement in revenue accounting.

2. How do you account for contract modifications and variable consideration such as rebates, penalties or usage-based fees?

Why they ask: To check your knowledge of more complex contract mechanics.

3. How do contract assets, contract liabilities, accrued income and deferred income work, and how do you reconcile them?

Why they ask: To test your ability to maintain the balance sheet side of revenue.

4. What does a typical month-end look like for a revenue accountant, and which qualities does the role need?

Why they ask: To check your awareness of the close cycle and interactions with sales and billing.

5. How do you determine whether the company is acting as principal or agent in a transaction, and why does it matter?

Why they ask: To test your understanding of gross versus net revenue.

6. At quarter-end, you discover a side letter promising a customer a right of refund that is not in the main contract. What do you do?

Why they ask: To test your response to hidden terms that affect revenue.

7. Tell me about a time you worked through a complex contract and reached an accounting conclusion.

Why they ask: To see your technical judgement in practice.

8. How do you check revenue cut-off and reconcile billing systems to the ledger, and which tools have you used?

Why they ask: To check you control the integrity of the revenue figure.

A sample answer to question 1

How do you decide whether revenue should be recognised over time or at a point in time under IFRS 15?

Under IFRS 15, revenue is recognised when control of a good or service passes to the customer, and I assess each performance obligation. It is recognised over time if any one of three criteria is met: the customer simultaneously receives and consumes the benefits as the entity performs, such as a monthly service; the entity's performance creates or enhances an asset the customer controls, for example work on the customer's premises; or the asset has no alternative use to the entity and the entity has an enforceable right to payment for work completed. If none applies, revenue is recognised at a point in time, using indicators of control transfer such as delivery, legal title, acceptance and the right to payment. For over-time obligations, I choose an output or input method, such as milestones or cost-to-cost, which best depicts performance, and apply it consistently. I read the contract terms carefully, since a small clause on termination payments can change the answer, and I document the judgement in a memo.

Common mistake to avoid: Recognising revenue when invoiced; ignoring contract termination terms

Want the rest?

Full model answers, key points and common mistakes for all 12 questions are on the Revenue Accountant interview questions page. The first five are free, no sign-up needed.