10+ Sacumen Interview Questions and Answers

Prepaid expenses are payments made in advance for goods or services that will be received in the future.

• Prepaid expenses are recorded as assets on the balance sheet until the goods or services are received.

• Examples of prepaid expenses include prepaid rent, prepaid insurance, and prepaid subscriptions.

• Prepaid expenses are typically amortized over the period in which the goods or services are received.

• Prepaid expenses can also be referred to as deferred expenses.

Accrual is a method of accounting where revenues and expenses are recognized when earned or incurred, regardless of when payment is received or made.

• Accrual accounting recognizes revenue when it is earned, not when payment is received

• Expenses are recognized when they are incurred, not when payment is made

• Accruals are recorded as adjusting entries at the end of an accounting period

• Examples of accruals include salaries owed to employees, interest owed on loans, and revenue earn...read more

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.

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

• Rules of accounting ensure consistency and accuracy in financial reporting

• They help in standardizing financial statements for comparability

• Examples include the matching principle, revenue recognition principle, and historical cost principle