A R ASSOCIATES Interview Questions and Answers

The golden rules of accounting are basic principles that guide the process of recording financial transactions.

• Debit what comes in, credit what goes out

• Debit the receiver, credit the giver

• Debit expenses and losses, credit income and gains

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business.

• Involves recording financial transactions

• Summarizing financial data in financial statements

• Analyzing financial information to make business decisions

• Reporting financial results to stakeholders

• Examples: preparing balance sheets, income statements, cash flow statements

The components of financial statements include income statement, balance sheet, cash flow statement, and statement of changes in equity.

• Income statement: Shows the company's revenues and expenses over a specific period of time.

• Balance sheet: Provides a snapshot of the company's financial position at a specific point in time, including assets, liabilities, and equity.

• Cash flow statement: Details the cash inflows and out...read more