Dubond Products Interview Questions and Answers

Prepaid taxes are recorded as an asset on the balance sheet until they are actually paid.

• Prepaid taxes are initially recorded as a debit to the Prepaid Taxes account and a credit to the Cash account.

• When the taxes are actually paid, the entry is a debit to the Taxes Expense account and a credit to the Prepaid Taxes account.

• The balance in the Prepaid Taxes account represents taxes that have been paid in advance but not yet expensed.

Budgeting involves setting a financial plan for a specific period, while forecasting predicts future financial outcomes based on current data and trends.

• Budgeting is a detailed financial plan for a specific period, usually a year, outlining expected revenues and expenses.

• Forecasting involves predicting future financial outcomes based on current data and trends, helping in decision-making and planning.

• Budgeting is more rigid and focuses on achieving specific financial goals, w...read more

Bank reconciliation is the process of comparing a company's records with those of the bank to ensure they match.

• Gather bank statements and company records

• Compare deposits, withdrawals, and fees between the two sets of records

• Identify and investigate any discrepancies

• Adjust the company's records to match the bank's records

• Prepare a bank reconciliation statement to document the process

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

• The golden rules include the principles of debit and credit, which are used to record transactions accurately.

• Debit what comes in and credit what goes out is one of the golden rules of accounting.

• Another golden rule is debit the receiver and credit the giver.

• The final golden rule is debit all expenses and losses, credit all incomes and gains.

Order to cash process is the set of business processes involved in receiving and fulfilling customer orders.

• Customer places an order

• Order is processed and approved

• Product is picked, packed, and shipped

• Invoice is generated and sent to customer

• Payment is received and recorded

A real account refers to assets, liabilities, and equity accounts on a company's balance sheet.

• Real accounts are permanent accounts that are not closed at the end of an accounting period.

• They include assets like cash, accounts receivable, inventory, property, plant, and equipment, as well as liabilities and equity.

• Changes in real accounts are recorded on the balance sheet and do not affect the income statement.

• Examples of real accounts include cash, accounts payable, and comm...read more