Interview Questions and Answers

Journal entries for depreciation, provision for depreciation, and accrued expenses.

• Depreciation: Debit Depreciation Expense, Credit Accumulated Depreciation

• Provision for Depreciation: Debit Provision for Depreciation Expense, Credit Provision for Depreciation

• Accrued Expenses: Debit Expense Account, Credit Accrued Expenses Account

The procure to pay cycle is the process of purchasing goods or services, receiving them, and making payment to the vendor.

• The cycle starts with identifying the need for a product or service.

• A purchase requisition is created and approved.

• The procurement department selects a vendor and issues a purchase order.

• The vendor delivers the goods or performs the service.

• The receiving department inspects and verifies the goods or services.

• An invoice is received from the vendor.

• The invoi...read more

The journal entry of P2P (Procure to Pay) involves recording the purchase of goods or services and the subsequent payment.

• Debit the relevant expense or asset account for the purchase

• Credit accounts payable for the amount owed

• Example: Debit Office Supplies Expense, Credit Accounts Payable

Bank reconciliation is the process of comparing a company's records of its bank account with the bank's records to ensure they match.

• Bank reconciliation involves comparing the balance in the company's accounting records with the balance shown on the bank statement.

• It helps identify any discrepancies such as outstanding checks, deposits in transit, or bank errors.

• The goal of bank reconciliation is to ensure the accuracy of the company's financial records and to detect any erro...read more

Three-way matching is a process in accounting that involves comparing three documents - purchase order, receiving report, and invoice - to ensure accuracy and prevent fraud.

• Three-way matching involves comparing a purchase order, receiving report, and invoice.

• The purchase order is a document that specifies the details of the goods or services ordered.

• The receiving report is created when the goods or services are received and verifies the quantity and condition.

• The invoice is t...read more

Two-way matching is a process in accounting where the purchase order, receiving report, and invoice are compared to ensure accuracy.

• Two-way matching involves comparing the purchase order with the invoice to ensure the quantity and price match.

• It also involves comparing the receiving report with the invoice to ensure the goods or services were received as stated.

• If all three documents match, it indicates that the transaction is accurate and can be processed for payment.

• For exa...read more