Rules of accounting

Question

Rules of accounting

Accepted Answer

Rules of accounting are the guidelines and principles that govern the preparation of financial statements.

Accounting equation must always balance: Assets = Liabilities + Equity
Revenue recognition principle: Revenue should be recorded when it is earned, not when cash is received
Matching principle: Expenses should be recorded in the same period as the revenue they help generate
Conservatism principle: When in doubt, choose the option that will result in lower profits or higher losses
Consistency principle: Once a company chooses an accounting method, it should stick with it
Materiality principle: Only significant transactions need to be recorded in financial statements

Accepted Answer

Golden rules
• Person Account
  ° Debit the receiver
  ° Credit the giver
•Real Account
  °Debit what comes in 
  ° Credit what goes out 
• Nominal Account
  ° Debit Expenses and loss
  ° Credit income and gain

Rules of accounting

Top Infosys BPM Accounts Process Executive interview questions & answers

Popular interview questions of Accounts Process Executive

Top HR questions asked in Infosys BPM Accounts Process Executive