AdamsBridge Global Junior Associate Interview Questions and Answers

Prepaid journals are accounting entries made to record expenses that have been paid in advance but have not yet been incurred.

• Prepaid journals are used to adjust the financial statements by recognizing expenses that have been paid for but not yet used.

• Common examples of prepaid journals include prepaid rent, prepaid insurance, and prepaid advertising.

• These entries involve debiting a prepaid expense account and creditin...read more

An accruals journal is used in accounting to record expenses and revenues that have been incurred but not yet paid or received.

• Accruals journal entries are used to match expenses with revenues in the same accounting period, even if the cash transaction has not occurred yet.

• Accruals help provide a more accurate representation of a company's financial position by recognizing expenses and revenues when they are incurred, ...read more