Accounting Specialist 3 Interview Questions and Answers

Accrual refers to the recognition of revenue or expenses that have been earned or incurred but not yet received or paid.

• Accrual accounting recognizes revenue and expenses when they are earned or incurred, regardless of when payment is received or made.

• This is in contrast to cash accounting, which only recognizes revenue and expenses when payment is received or made.

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

• Examples of accruals inc...read more

Due accounting records transactions when payment is received, while accrual accounting records transactions when they occur.

• Due accounting is cash-based and records transactions when payment is received.

• Accrual accounting is based on when transactions occur, regardless of payment.

• Example: Due accounting records revenue when a customer pays for a product, while accrual accounting records revenue when the product is sold.

• Example: Due accounting records expenses when they are pa...read more