Capita Financial Analyst Interview Questions and Answers for Experienced

Accrual entry is a journal entry made to record revenue or expenses that have been earned or incurred but not yet received or paid.

• Accrual entry is used to match revenue and expenses to the period in which they were earned or incurred.

• It is recorded as a debit to an expense or asset account and a credit to a liability or revenue account.

• Examples of accrual entries include recording unpaid salaries, interest on loans, a...read more

Prepaid expenses are assets paid in advance while outstanding expenses are liabilities yet to be paid.

• Prepaid expenses are recorded as assets on the balance sheet until they are used or expire.

• Journal entry for prepaid expense: Debit Prepaid Expense, Credit Cash/Bank.

• Outstanding expenses are recorded as liabilities on the balance sheet until they are paid.

• Journal entry for outstanding expense: Debit Expense, Credit Acc...read more