American Broadcasting Company Accountant Interview Questions and Answers

Trail balance is a list of all ledger accounts, income statement shows revenue and expenses, balance sheet shows assets and liabilities.

• Trail balance lists all ledger accounts and their balances

• Income statement shows revenue and expenses for a specific period

• Balance sheet shows assets, liabilities and equity at a specific point in time

• Trail balance is used to ensure that debits and credits are equal

• Income statement hel...read more

Accruals are expenses incurred but not yet paid, while provisions are liabilities that are uncertain in timing or amount.

• Accruals are recognized as expenses in the income statement even if payment has not been made yet.

• Provisions are recognized as liabilities in the balance sheet and are set aside for uncertain events such as lawsuits or warranties.

• Accruals and provisions are important for accurate financial reporting ...read more

Bank reconciliation involves comparing bank statements with company records to ensure accuracy of financial transactions.

• Obtain bank statement and company records

• Compare deposits and withdrawals

• Identify and resolve discrepancies

• Adjust company records accordingly

• Prepare reconciliation report