Hgs Services Accountant Interview Questions and Answers

The journal entry for accounts payable is a credit to accounts payable and a debit to the corresponding expense or asset account.

• Accounts payable is a liability account that represents the amount owed to suppliers or vendors for goods or services received.

• When recording the journal entry for accounts payable, the accounts payable account is credited to increase the liability.

• The corresponding expense or asset account i...read more

Journal entries for accounts receivable record the increase and decrease in the amount owed by customers.

• When a sale is made on credit, the journal entry debits accounts receivable and credits sales revenue.

• When a customer makes a payment, the journal entry debits cash and credits accounts receivable.

• If a customer returns goods, the journal entry debits sales returns and allowances and credits accounts receivable.

• If an...read more

The type of account refers to the classification of accounts based on their nature and purpose.

• There are five main types of accounts: assets, liabilities, equity, revenue, and expenses.

• Assets are resources owned by the company, such as cash, inventory, and equipment.

• Liabilities are obligations owed by the company, such as loans and accounts payable.

• Equity represents the owner's stake in the business.

• Revenue is the inco...read more

Bank reconciliation is the process of comparing and matching the balances in a company's accounting records with the balances on its bank statement.

• Bank reconciliation helps ensure that all transactions are recorded accurately in the company's books.

• It involves comparing the company's records of its bank account with the bank statement to identify any discrepancies.

• Common reasons for discrepancies include outstanding c...read more

Tangible assets are physical assets that can be seen and touched.

• Real estate

• Machinery

• Vehicles

• Inventory

• Furniture and fixtures

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

• Includes cash, accounts receivable, inventory, and prepaid expenses

• Listed on the balance sheet under assets

• Helps determine a company's liquidity and ability to pay off short-term obligations

The gold rule of accounting states that debits must equal credits in every financial transaction.

• Debits must always equal credits in accounting entries

• It is the foundation of double-entry accounting

• Helps ensure accuracy and balance in financial records