LG Soft India Assistant Manager Interview Questions and Answers

Accrual is an accounting method where revenue or expenses are recognized when earned or incurred, regardless of when payment is received or made.

• Accrual accounting is the opposite of cash accounting

• Accruals are recorded as adjusting entries in the general ledger

• Examples of accruals include interest expense, salaries payable, and accounts receivable

• The entry for an accrual involves debiting an expense account and credit

Contingency liability is a potential liability that may occur in the future based on certain events or circumstances.

• It is a liability that is not certain but may occur in the future

• It is based on certain events or circumstances

• Examples include lawsuits, warranties, and environmental cleanup costs