Global Upside Assistant Manager Interview Questions and Answers

Current assets are assets that are expected to be converted into cash or used up within one year.

• Current assets include cash, accounts receivable, inventory, and prepaid expenses.

• They are listed on the balance sheet and are important for assessing a company's liquidity.

• Examples of current assets are cash in bank, short-term investments, accounts receivable, and inventory.

A journal entry of credit purchase involves recording the purchase of goods or services on credit in the accounting records.

• Debit the Purchases account to record the increase in inventory or services purchased

• Credit the Accounts Payable account to record the liability for the purchase

• Include the date of the transaction, description of the purchase, and amount in the journal entry

• Example: Debit Purchases $1,000, Credit