Facebook Interview Questions and Answers

Debtors are people who owe money to the company, while creditors are people or entities that the company owes money to. They are added to the balance sheet.

• Debtors are listed under current assets on the balance sheet

• Creditors are listed under current liabilities on the balance sheet

• Debtors can include customers who have not yet paid for goods or services

• Creditors can include suppliers who have not yet been paid for goods or services received

• The balance between debtors and cre...read more

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.

• It involves keeping track of financial transactions such as sales, purchases, and payments

• It includes preparing financial statements such as balance sheets and income statements

• It helps in analyzing financial performance and making informed business decisions

• Examples include bookkeeping, tax preparation, and auditing

Balance sheet is calculated by subtracting liabilities from assets.

• Assets are listed on the left side of the balance sheet and liabilities on the right side.

• The difference between the two sides is the owner's equity or net worth.

• The balance sheet is a snapshot of a company's financial position at a specific point in time.

• Examples of assets include cash, accounts receivable, and property.

• Examples of liabilities include accounts payable, loans, and taxes owed.

Bad debt refers to the amount of money owed to a company that is unlikely to be paid back.

• Bad debt is recorded as an expense on the income statement.

• It is also reflected on the balance sheet as a reduction in accounts receivable.

• The amount of bad debt is estimated by the company based on past experience and current economic conditions.

• For example, if a company has $100,000 in accounts receivable and estimates that $5,000 is unlikely to be paid back, the bad debt expense would...read more

DR and CR are abbreviations used in accounting to represent Debit and Credit respectively.

• DR stands for Debit and is used to record an increase in assets or a decrease in liabilities or equity.

• CR stands for Credit and is used to record a decrease in assets or an increase in liabilities or equity.

• Every transaction in accounting must have an equal amount of DR and CR entries.

• DR and CR are used to maintain the balance sheet equation: Assets = Liabilities + Equity.

Bad debt is an amount owed by a debtor that is unlikely to be paid back to the creditor.

• Bad debt is a loss for the creditor as they are unable to recover the amount owed.

• It can occur due to various reasons such as bankruptcy, insolvency, or fraud.

• Bad debt can be written off as an expense for tax purposes.

• For example, if a customer owes $1000 to a company and declares bankruptcy, the company may not be able to recover the amount owed, resulting in bad debt.

Bad debt is an amount owed by a debtor that is unlikely to be paid back.

• Bad debt is a loss for the creditor as they are unlikely to receive the amount owed.

• It can occur due to bankruptcy, insolvency, or default by the debtor.

• Bad debt can be written off as an expense for tax purposes.

• Examples include unpaid credit card bills, unpaid loans, and unpaid invoices.

Tally is an accounting software used for managing financial transactions and generating reports.

• Tally is widely used by businesses for bookkeeping and accounting purposes.

• It can handle various financial transactions such as invoicing, inventory management, payroll, and taxation.

• Tally provides various features such as data security, remote access, and multi-lingual support.

• It can generate various reports such as balance sheets, profit and loss statements, and cash flow stateme...read more