Loginworks Softwares Management Trainee Accounts Interview Questions, Process, and Tips

Important terms used in a balance sheet include assets, liabilities, equity, current assets, current liabilities, long-term liabilities, and retained earnings.

• Assets: Resources owned by a company that have economic value, such as cash, inventory, and property.

• Liabilities: Debts or obligations owed by a company, such as loans and accounts payable.

• Equity: The residual interest in the assets of a company after deducting l...read more

Golden rules of accounting are basic principles to be followed while recording financial transactions.

• Debit the receiver, credit the giver

• Debit what comes in, credit what goes out

• Debit all expenses and losses, credit all incomes and gains

Trial balance is a list of all ledger accounts with their debit or credit balances, while balance sheet is a statement of assets, liabilities, and equity of a company at a specific point in time.

• Trial balance is an internal document used to ensure the accuracy of accounting records before preparing financial statements.

• Balance sheet is a financial statement that shows the financial position of a company at a specific p...read more

Accounts payable is the amount of money a company owes to its vendors or suppliers for goods or services received.

• Accounts payable is a liability account that shows the amount owed to vendors or suppliers.

• It is recorded in the balance sheet under current liabilities.

• Accounts payable can include invoices for goods or services received but not yet paid for.

• It is important to manage accounts payable to ensure timely payme...read more

Journal is a record of transactions while ledger is a summary of those transactions.

• Journal is the first step in the accounting process where transactions are recorded in chronological order

• Ledger is the second step where transactions are classified and summarized by account

• Journal provides the details of each transaction while ledger provides the balance of each account

• Journal is used to create entries in the ledger

• Le