Filatex India Interview Questions and Answers

The 3 types of liabilities are current liabilities, non-current liabilities, and contingent liabilities.

• Current liabilities are obligations due within one year, such as accounts payable and short-term loans.

• Non-current liabilities are obligations due beyond one year, such as long-term loans and bonds payable.

• Contingent liabilities are potential obligations that depend on the outcome of future events, such as lawsuits or warranties.

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

• The golden rules include: Debit the receiver, Credit the giver; Debit what comes in, Credit what goes out; Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified in the accounting system.

• For example, when a company receives cash from a customer, the cash account is debited (increas...read more

The formula for capital is total assets minus total liabilities.

• Capital = Total Assets - Total Liabilities

• Total assets include cash, inventory, property, etc.

• Total liabilities include debts, loans, accounts payable, etc.

Financial accounting is the process of recording, summarizing, and reporting the financial transactions of a business.

• Involves recording financial transactions

• Summarizing financial data in financial statements like balance sheet and income statement

• Reporting financial information to stakeholders like investors and regulators

There are five main types of accounts: assets, liabilities, equity, revenue, and expenses.

• Assets: resources owned by the company (e.g. cash, inventory)

• Liabilities: obligations owed by the company (e.g. loans, accounts payable)

• Equity: the owner's claim on the company's assets (e.g. common stock)

• Revenue: income generated from the company's operations (e.g. sales revenue)

• Expenses: costs incurred to generate revenue (e.g. salaries, rent)