R Systems International Interview Questions and Answers

Journal entries for purchases involve debiting the inventory account and crediting the accounts payable or cash account.

• Debit the inventory account to record the increase in inventory due to the purchase

• Credit the accounts payable account if the purchase was made on credit

• Credit the cash account if the purchase was made with cash

• Example: Debit Inventory $1,000, Credit Accounts Payable $1,000

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

• Gather bank statements and accounting records

• Compare deposits and withdrawals between the two

• Identify and investigate any discrepancies

• Adjust the accounting records to match the bank statement

• Prepare a bank reconciliation statement to document the process

The golden rule of accounting states that debit what comes in and credit what goes out.

• Debit what comes in and credit what goes out

• Assets = Liabilities + Equity

• Helps maintain the balance in financial statements

Accrual refers to the recognition of revenue and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual accounting matches revenues with expenses in the same accounting period

• It provides a more accurate representation of a company's financial position

• Examples include recognizing revenue when a service is performed, even if payment is not received yet

Golden rules are basic principles of accounting that serve as the foundation for recording financial transactions.

• Golden rules include the principles of Debit the receiver, Credit the giver; Debit what comes in, Credit what goes out; and Debit expenses and losses, Credit income and gains.

• These rules help ensure accurate and consistent recording of financial transactions in accounting.

• For example, when a business receives cash from a customer, the cash account is debited (incr...read more

I will explain the previous process I followed in my accounting role.

• I maintained accurate financial records by recording transactions in the general ledger.

• I prepared financial statements such as balance sheets and income statements.

• I reconciled bank statements and ensured all accounts were balanced.

• I communicated with clients and vendors to resolve any discrepancies or issues.

• I followed company policies and procedures to ensure compliance with regulations.