Freelancer.com Accountant Interview Questions and Answers

Accountancy is the practice of recording, analyzing, and reporting financial transactions for individuals, businesses, and organizations.

• Accountancy involves the systematic recording of financial transactions.

• It includes analyzing financial data to provide insights and make informed decisions.

• Accountants prepare financial statements and reports to communicate the financial health of an entity.

• They ensure compliance wit...read more

A debtor is a person or entity that owes money or has a financial obligation to another party.

• A debtor is someone who has borrowed money or received goods or services on credit.

• Debtors can be individuals, businesses, or even governments.

• They are legally obligated to repay the borrowed amount or fulfill their financial obligations.

• Debtors are recorded as liabilities on the balance sheet of the creditor.

• Examples of debto...read more

A creditor is a person or entity to whom money is owed.

• A creditor is someone who has provided goods or services on credit.

• They are owed money by the debtor.

• Creditors can be individuals, businesses, or financial institutions.

• Examples of creditors include suppliers, banks, and bondholders.

The ledger entry for a credit sale involves recording the increase in accounts receivable and the corresponding increase in sales revenue.

• Credit sale is a transaction where goods or services are sold on credit, meaning the payment is expected at a later date.

• To record a credit sale, the accounts receivable account is debited to increase the amount owed by the customer.

• Simultaneously, the sales revenue account is credit...read more