Tax Accountant Interview Questions and Answers

Journal entries for depreciation involve recording the decrease in value of an asset over time.

• Depreciation is recorded as an expense on the income statement and as an accumulated depreciation on the balance sheet.

• The journal entry for depreciation typically involves debiting the depreciation expense account and crediting the accumulated depreciation account.

• For example, if a company's equipment has a depreciation expense of $1,000, the journal entry would be: Debit Depreciat...read more

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

• The first golden rule is the Debit/Credit rule, which states that for every debit entry, there must be a corresponding credit entry.

• The second golden rule is the Real/Personal/Nominal rule, which categorizes accounts into these three types based on their nature.

• The third golden rule is the Expense/Income rule, which states that expenses decrease equity while income increases...read more