Transaction Processing Representative Interview Questions and Answers for Freshers

Debit and credit are accounting terms used to record financial transactions in a company's general ledger.

• Debit is an entry on the left side of an account, representing an increase in assets or a decrease in liabilities or equity.

• Credit is an entry on the right side of an account, representing a decrease in assets or an increase in liabilities or equity.

• Debits must equal credits in every transaction to maintain the accounting equation: Assets = Liabilities + Equity.

Rules of accounting are principles and guidelines that govern the preparation of financial statements.

• Accounting equation must always balance: Assets = Liabilities + Equity

• Revenue recognition principle dictates when revenue should be recorded

• Matching principle requires expenses to be recorded in the same period as the revenue they helped generate