Pierian Services Interview Questions, Process, and Tips for Experienced

Golden rules of accounts include maintaining accurate records, ensuring proper depreciation methods, and optimizing P2P processes.

• Maintain accurate records of all financial transactions

• Ensure proper depreciation methods are used to accurately reflect asset values

• Optimize P2P processes to improve efficiency and reduce costs

• Examples: using electronic invoicing, implementing automated approval workflows

Accrual concept 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

• Accrual concept is used to match revenues and expenses in the same accounting period

• Example: A company provi...read more

Deferral concept refers to postponing the recognition of revenue or expenses until a later period.

• It is a key accounting principle used to match revenues and expenses in the appropriate accounting period

• It is used when cash is received or paid in advance for goods or services that will be delivered or rendered in the future

• Examples include prepaid rent, unearned revenue, and deferred tax liabilities

• Deferral concept is ...read more

Accrual concept 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

• Accrual concept is used to match revenues and expenses in the same accounting period

• Example: A company provi...read more

Deferral concept refers to the postponement of recognition of revenue or expenses until a later period.

• It is a concept in accounting where revenue or expenses are not recognized immediately but are deferred to a later period

• It is used to match revenue and expenses to the period in which they are earned or incurred

• Examples include prepaid expenses, unearned revenue, and deferred tax liabilities

• It is important for accura...read more

The golden rules of accounting are fundamental principles that guide the recording of financial transactions.

• The first golden rule is the Personal Account rule, which states that debit the receiver and credit the giver.

• The second golden rule is the Real Account rule, which states that debit what comes in and credit what goes out.

• The third golden rule is the Nominal Account rule, which states that debit all expenses and