Process Associate and Acting Process Supervisor Interview Questions and Answers

The golden rule of accounting is to record every financial transaction in at least two different accounts.

• Every transaction should have a debit and a credit entry

• Debits and credits must be equal in value

• This ensures accuracy and helps prevent errors and fraud

• Example: When a company purchases inventory, it should record a debit to the inventory account and a credit to the accounts payable account

Accrued expenses are expenses that have been incurred but not yet paid for.

• Accrued expenses are recorded as liabilities on the balance sheet.

• They are expenses that have been recognized but not yet paid.

• Examples include salaries, interest, and taxes.

• Accrued expenses are typically adjusted at the end of an accounting period.

• They are important for accurate financial reporting.

Outstanding expenses are expenses that have been incurred but not yet paid for.

• Outstanding expenses are also known as accrued expenses.

• They are recorded as a liability on the balance sheet.

• Examples include rent, salaries, and utilities that have been used but not yet paid for.

• They are typically paid for in the following accounting period.

• Outstanding expenses are important to track as they can affect the accuracy of financial statements.