Accounting Associate 2 Interview Questions and Answers for Freshers

Payment made to creditors post a journal will be reflected on the liabilities side of the financial statement.

• Payments made to creditors are considered as liabilities for the company.

• These payments will be reflected on the balance sheet under the liabilities section.

• The balance sheet shows the company's financial position at a specific point in time.

• Examples of liabilities include accounts payable, loans, and accrued expenses.

Accounts payable are amounts owed by a company to its suppliers for goods or services purchased on credit. Accounts receivable are amounts owed to a company by its customers for goods or services provided on credit.

• Accounts payable represent the money a company owes to its suppliers for goods or services received but not yet paid for.

• Accounts receivable represent the money owed to a company by its customers for goods or services provided on credit.

• Accounts payable are liabili...read more

Depreciation is the allocation of the cost of tangible assets over their useful life, while amortization is the allocation of the cost of intangible assets over their useful life.

• Depreciation applies to tangible assets like buildings, machinery, and vehicles, while amortization applies to intangible assets like patents, copyrights, and trademarks.

• Depreciation is usually calculated using methods like straight-line or accelerated depreciation, while amortization is typically ca...read more

A bank reconciliation statement is a document that compares the balance in a company's bank account with the balance shown on the bank statement.

• It helps identify any discrepancies between the two balances, such as outstanding checks or deposits in transit.

• The statement typically includes adjustments for items like bank fees, interest earned, and errors.

• The goal is to ensure that the company's records accurately reflect its financial position.

• Example: If a company's bank stat...read more