1 Describe the liabilities items on a balance sheet.
29) Name different branches of accounting
There are three branches of accounting:
132) Differentiate between internal audit and statutory audit
Candidate can answer the question of interviewer like, the difference between internal audit and statutory audit is:
|Internal audit||Statutory audit|
|An internal audit is an inspection conducted by the internal auditors of the organization.||A statutory audit is an inspection conducted by the external auditors.|
|It is not mandatory for the company.||It is mandatory for the company.|
63) What are assets minus liabilities?
Assets minus liabilities are defined as:
76) What is reversing journal entries?
Reversing journal entries are entries made at the beginning of an accounting period to cancel out the adjusting journal entries. These entries are made at the end of the previous accounting period.
98) Mention the types of ledgers
There are three types of ledger
GAAP means Generally Accepted Accounting Principle; it is a framework of accounting, standards, procedures & rules determined by the professional accounting industry and practiced by publicly traded U.S companies all over the U.S.A.
39) Define depreciation and its types
Depreciation can be defined as the value of an asset that is decreasing as it is in use. It has two types, such as:
What are the three main financial statements?
Sample Answer: The three main financial statements are
The Income Statement discloses a companys revenues and expenses, which together yield net income over a period of time. The Balance Sheet discloses a companys assets, liabilities, and equity on a specific date. The Cash Flow Statement starts with net income from the Income Statement; then adjusts for non-cash expenses, non-operating expenses like capital expenditures, changes in working capital, or debt repayment and issuance to arrive at the companys closing cash balance.
51) What is compound journal entry?
A compound journal entry is just like other accounting entries where there is more than one debit, more than one credit, or more than one of both debits and credits. It is essentially a combination of several simple journal entries.
60) When are revenues reported in the accounting period?
Revenues are reported in the accounting period when service or goods have been delivered.