Rishi Associates Interview Questions and Answers

Accounting is the process of recording, summarizing, and analyzing financial transactions of a business.

• Accounting involves recording financial transactions such as sales, purchases, and expenses.

• It includes summarizing these transactions into financial statements like balance sheets and income statements.

• Accounting also involves analyzing financial data to provide insights and make informed business decisions.

• Examples...read more

Book-keeping is the process of recording financial transactions and maintaining financial records.

• It involves recording all financial transactions of a business

• It helps in maintaining accurate financial records

• It includes tasks like recording sales, purchases, payments, receipts, etc.

• Book-keeping is the foundation of accounting

• Examples of book-keeping include maintaining a cash book, ledger, and trial balance

The 3 golden rules of Accounting are: Debit the receiver, Credit the giver, and Account for all transactions.

• Debit the receiver: Increase in assets and decrease in liabilities are debited.

• Credit the giver: Increase in liabilities and decrease in assets are credited.

• Account for all transactions: Every transaction should be recorded in the books of accounts.

Debit and Credit are the two fundamental concepts in accounting used to record financial transactions.

• Debit refers to the left side of an account and represents an increase in assets or a decrease in liabilities or equity.

• Credit refers to the right side of an account and represents a decrease in assets or an increase in liabilities or equity.

• Every transaction must have an equal debit and credit amount to maintain the b...read more

Bank Reconciliation is the process of matching and comparing the balance in the bank statement with the company's own records.

• It helps to identify any discrepancies between the two records.

• It ensures that all transactions are recorded accurately.

• It helps to detect any errors or fraud in the bank statement.

• It helps to maintain the accuracy of financial statements.

• Examples: checks that have not cleared the bank, bank fee

Debtor is a person or entity who owes money to another person or entity. Creditor is a person or entity to whom money is owed.

• Debtor is the one who has taken a loan or credit from a creditor.

• Creditor is the one who has given the loan or credit to the debtor.

• Debtor owes money to the creditor and is liable to pay it back.

• Creditor has the right to collect the money owed by the debtor.

• Examples of debtors include individual...read more