Burgundy Clothings Executive Accountant Interview Questions and Answers

A type of obligation that a company or individual owes to another party.

• Liability refers to the legal obligation to pay debts or fulfill other obligations.

• It can be classified as current or long-term, depending on the time frame for repayment.

• Examples include accounts payable, loans, and taxes owed.

• Liabilities are listed on a company's balance sheet and are an important factor in determining financial health.

Debit represents incoming funds while credit represents outgoing funds.

• Debit is used to record an increase in assets or a decrease in liabilities or equity.

• Credit is used to record a decrease in assets or an increase in liabilities or equity.

• For example, when a company receives cash from a customer, it would debit cash and credit accounts receivable.

• Conversely, when a company pays a supplier, it would credit cash and d