Eyo Solutions Interview Questions, Process, and Tips

Contingent liabilities are potential future obligations that may arise depending on the outcome of a future event.

• Contingent liabilities are not recorded on the balance sheet but disclosed in the footnotes.

• They are potential liabilities that depend on the occurrence of a specific event, such as a lawsuit or warranty claim.

• Examples include pending lawsuits, product warranties, and guarantees on loans made to third parti

The Golden rules are basic principles or guidelines that are considered essential or fundamental in a particular field or context.

• Golden rules are often used as a framework for decision-making and behavior.

• They are typically simple, easy to remember, and widely accepted.

• Examples include 'treat others as you want to be treated' and 'do unto others as you would have them do unto you.'

Journal entries of closing stock involve recording the value of unsold inventory at the end of an accounting period.

• Closing stock is recorded as an asset on the balance sheet

• The journal entry involves debiting the closing stock account and crediting the purchases account

• The value of closing stock is determined by physical count or using a valuation method like FIFO or LIFO

Prepaid accounting is a method of recognizing expenses or revenue before they are actually incurred or earned.

• Prepaid accounting involves recording expenses or revenue in advance, before they are realized.

• Common examples include prepaid insurance, prepaid rent, and prepaid subscriptions.

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

• Prepaid revenue is recorded as a liability ...read more