CUMIQ Pharmaceuticals Interview Questions and Answers

Journal entry for cash inflow or bad debts

• Cash inflow journal entry: Debit Cash account, Credit Revenue account

• Bad debts journal entry: Debit Bad Debt Expense account, Credit Accounts Receivable account

• Cash inflow example: Debit Cash $1,000, Credit Revenue $1,000

• Bad debts example: Debit Bad Debt Expense $500, Credit Accounts Receivable $500

Accounting principles are the rules and guidelines that companies must follow when preparing financial statements.

• Accounting principles ensure consistency and accuracy in financial reporting

• Some common accounting principles include the revenue recognition principle, matching principle, and cost principle

• These principles help ensure that financial statements are reliable and comparable across different companies

Order to cash cycle is the process of receiving and fulfilling customer orders, invoicing, and receiving payment.

• Order is received from customer

• Order is processed and fulfilled

• Invoice is generated and sent to customer

• Payment is received from customer

• Accounts receivable is updated

Order to cash is the process of receiving and fulfilling customer orders, invoicing, and receiving payment.

• Order to cash involves receiving customer orders

• Processing the orders

• Invoicing the customer

• Receiving payment for the order

• It is a key process in the financial cycle of a company

The golden rule of accounts is to debit the receiver and credit the giver.

• Debit what comes in, credit what goes out

• Debit the receiver, credit the giver

• Assets = Liabilities + Equity