RTR Analyst Interview Questions and Answers

Prepaid expenses journal entry involves debiting prepaid expense account and crediting cash account.

• Prepaid expenses are expenses paid in advance but not yet incurred.

• Journal entry for prepaid expenses involves debiting prepaid expense account and crediting cash account.

• Prepaid expense account is an asset account and is shown on the balance sheet.

• Example: Rent paid in advance for the next 6 months.

• Example: Insurance premium paid in advance for the next year.

Accrued interest journal entry is a debit to interest expense and a credit to accrued interest payable.

• Debit interest expense account for the amount of interest accrued

• Credit accrued interest payable account for the same amount

• Accrued interest is the interest that has been earned but not yet received or paid

• Example: Debit Interest Expense $500, Credit Accrued Interest Payable $500

End to end accounting process involves all the steps from recording transactions to preparing financial statements.

• The process starts with recording transactions in journals and ledgers.

• Then, the transactions are summarized in trial balance and adjusted in adjusting entries.

• Financial statements are prepared using the adjusted trial balance.

• The process ends with closing entries and preparing post-closing trial balance.

• Examples of end to end accounting process include accounts ...read more