AKM Global Financial Accountant Interview Questions, Process, and Tips

Provisions are liabilities that are uncertain in timing or amount, while reserves are profits set aside for specific purposes.

• Provisions are recognized when there is a present obligation and it is probable that an outflow of resources will be required to settle the obligation.

• Provisions are measured at the best estimate of the amount required to settle the obligation.

• Examples of provisions include warranty provisions, ...read more

Accrued expenses are expenses that have been incurred but not yet paid. Journal entries are used to record these expenses.

• Accrued expenses are recorded as liabilities on the balance sheet.

• They represent expenses that have been incurred but not yet paid.

• Accrued expenses are typically recognized at the end of an accounting period.

• Journal entries are used to record accrued expenses by debiting an expense account and credi...read more

The journal entry for bad debts involves debiting the Bad Debts Expense account and crediting the Allowance for Doubtful Accounts or Accounts Receivable account.

• Bad debts are uncollectible accounts receivable that a company does not expect to recover.

• The Bad Debts Expense account is an expense account that represents the estimated amount of uncollectible accounts.

• The Allowance for Doubtful Accounts or Accounts Receivab...read more

The 3 golden rules for accounting are the rules of debit and credit, the rule of assets and liabilities, and the rule of income and expenses.

• Rule of debit and credit: Every transaction has equal debits and credits, ensuring that the accounting equation remains balanced.

• Rule of assets and liabilities: Assets increase with debits and decrease with credits, while liabilities increase with credits and decrease with debits.

• ...read more

Prepaid expenses are advance payments made for goods or services that will be received in the future.

• Prepaid expenses are considered as assets on the balance sheet.

• They represent expenses that have been paid for but have not yet been used or consumed.

• Journal entry for prepaid expenses involves debiting the Prepaid Expense account and crediting the Cash or Accounts Payable account.

• As the prepaid expense is used or consu...read more