quatrro business support services Financial Analyst Interview Questions and Answers

The Golden rule of accounting is to debit the receiver and credit the giver.

• It is a fundamental principle of accounting.

• It is used to record transactions in the correct way.

• It ensures that the accounting equation remains balanced.

• For example, when a company receives cash, it debits cash and credits the account that provided the cash.

• It is also known as the principle of reciprocity.

Accruals are revenues earned but not yet received, while deferrals are payments received but not yet earned.

• Accruals are recorded as accounts receivable on the balance sheet.

• Deferrals are recorded as accounts payable on the balance sheet.

• Examples of accruals include interest income and sales revenue.

• Examples of deferrals include prepaid rent and unearned revenue.

• Accruals and deferrals are important for accurate financi...read more