General Accountant Interview Questions and Answers for Freshers

The period to pay for goods purchased on credit depends on the terms agreed upon with the supplier.

• The payment period for goods purchased on credit is typically outlined in the credit terms agreed upon with the supplier.

• Common payment periods for goods purchased on credit include 30 days, 60 days, or 90 days.

• Late payments may incur penalties or interest charges, so it is important to adhere to the agreed-upon payment terms.

Reconciliation is the process of comparing two sets of records to ensure they are in agreement.

• Reconciliation involves verifying and adjusting financial records to match bank statements or other sources.

• It helps identify discrepancies or errors in the records.

• Examples include reconciling bank statements with cash account records or matching invoices with payments received.

• Reconciliation is crucial for accurate financial reporting and fraud prevention.

Accounts payable is the amount a company owes to its suppliers or vendors for goods or services purchased on credit.

• Accounts payable is a liability on the balance sheet

• It represents the amount a company owes for goods or services received but not yet paid for

• Accounts payable is typically recorded when an invoice is received from a supplier

• It is an important part of working capital management for businesses

Accrual refers to the recognition of revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual accounting matches revenues with expenses in the same accounting period, even if cash has not been exchanged.

• Example: A company provides services to a client in December but does not receive payment until January. The revenue is recognized in December when the service is provided, not in January when payment is received.

• Accrual accounting provides a ...read more