1 What is Depreciation, different types of depreciation & its journal entry?
The reduction in the value of a tangible fixed asset due to normal usage, wear and tear, new technology or unfavourable market conditions is called Depreciation.
Types of Depreciation
Read more on Depreciation with examples along with types of depreciation
Related Topic – Provision for Depreciation Shown in Trial Balance
Contingent liabilities are those liabilities that may or may not be incurred by a business depending on the outcome of a future event. The existence of this kind of liability is completely dependent on the occurrence of a probable event in future.
Example – Let’s suppose that Apple files a case of a patent violation on Samsung and Samsung not only realizes that it may have to pay for violations but also estimates how much in total. In this case, Samsung will record the estimated amount in its books of accounts as a Contingent Liability.
What are the three Golden Rules of Accounting?
First things first this is the most basic yet the easiest one to be taken for granted, know this well.
In bookkeeping, three golden rules of accounting are,
Personal Account – Debit the receiver, Credit the giver
Real Account – Debit what comes in, Credit what goes out
Nominal Account – Debit all expenses & losses, Credit all incomes & gains
Understand this with examples here Three Golden Rules of Accounting with examples
Related Topic – Accounts not Closed at the End of an Accounting Period?
What are the three main types of accounts?
They are Real, Personal and Nominal but wait… if don’t want to sound artificial and stand out from the crowd then make sure you are explaining your answer in brief (one line about each is ideal)
Real – All assets in business either tangible or intangible classify as real accounts.
Personal – Accounts related to a person, entity or any legal body, etc. are called personal accounts.
Nominal – All accounts related to expenses & losses or incomes & gains fall under this category.
Related Topic – List of Direct and Indirect Expenses
64) List the three basic elements of cost
The three basic elements of cost are 1) Material, 2) Labour, and 3) Expenses.
67) How to adjust entries into account?
Entries can be adjusted into account by sorting entries into five categories:
What Is Your Background Working in Various Industries?
Recruiters want to see if your experience aligns with the companys size and industry, says Chris Robbins, Senior Talent Acquisition Specialist with Dixon Huges Goodman, a top 20 public accounting firm. Since accounting is such a vast profession, rules and processes differ across industries.
How to calculate turnover accounting?
The turnover ratio of a company is the measure that is used to understand how well the company manages to collect its receivables from its clients.
Accounts Receivable Turnover= Net credit sales/Average accounts receivable
What are the three main Financial Statements?
This is another very common question asked in finance and accounting interviews, especially with entry-level roles. Three main financial statements are the Income Statement, Balance Sheet, and Cash Flow Statement.
Again, follow the i.e. to add one brief statement to each one of them, but don’t over-talk it will only make you vulnerable to more questions.
Income Statement – It presents a summarized view of revenue, income, profit, and loss of a particular accounting period.
Balance Sheet – B/S would show them as on-date assets, liabilities & capital position of a business.
Cash Flow Statement – It shows the movement of cash and cash equivalents for a business during an accounting period.
Learn more on Three Main Financial Statements, Details and their Format