Information Process Specialist Interview Questions and Answers

P&L account stands for Profit and Loss account. It is a financial statement that shows a company's revenues, expenses, and net income or loss over a specific period.

• P&L account is also known as an income statement.

• It is used to determine a company's profitability.

• The statement shows the company's revenue, cost of goods sold, gross profit, operating expenses, and net income or loss.

• It is usually prepared on a monthly, quarterly, or annual basis.

• Example: If a company has $100,0...read more

Golden rules of accounting are basic principles that guide the recording of financial transactions.

• Debit the receiver, credit the giver

• Debit what comes in, credit what goes out

• Debit expenses and losses, credit income and gains

Accounting helps in tracking financial transactions, analyzing business performance, and making informed decisions.

• Provides insights into financial health of the organization

• Helps in budgeting and forecasting

• Ensures compliance with regulations and tax laws

• Facilitates decision-making based on financial data

• Helps in evaluating the profitability of products or services

Accounts refer to financial records that track the financial activities of an individual or organization.

• Accounts are used to track income, expenses, assets, and liabilities.

• Examples of accounts include checking accounts, savings accounts, and credit card accounts.

• Accounts are essential for budgeting, financial planning, and tax purposes.

The 3 golden rules of accounts are the fundamental accounting principles that guide the recording of financial transactions.

• 1. Debit what comes in, credit what goes out

• 2. Debit the receiver, credit the giver

• 3. Debit expenses and losses, credit income and gains