Pierian Services Interview Questions and Answers

The golden rule of accounting is to debit the receiver and credit the giver.

• Debit the receiver, credit the giver

• Assets = Liabilities + Equity

• Revenue increases equity, expenses decrease equity

• Helps maintain the balance in financial statements

The journal entry for a credit purchase involves crediting accounts payable and debiting the corresponding expense account.

• Credit the accounts payable account to reflect the increase in liability

• Debit the corresponding expense account to show the decrease in assets

• Example: Journal entry for a credit purchase of $500 of office supplies - Debit Office Supplies Expense $500, Credit Accounts Payable $500

Prepaid expenses are expenses paid in advance but not yet incurred. They are recorded as assets on the balance sheet until they are used up.

• Prepaid expenses are initially recorded as assets on the balance sheet

• As the expenses are incurred, they are gradually expensed on the income statement

• Adjust prepaid expenses account at the end of each accounting period to reflect the portion that has been used up

• Examples of prepai...read more

Cashflow statement shows the inflow and outflow of cash in a business over a specific period of time.

• Cashflow statement is divided into three main activities: operating, investing, and financing.

• Operating activities include cash received from sales, payments to suppliers, and salaries paid to employees.

• Investing activities include cash spent on purchasing assets like equipment or investments like stocks.

• Financing activ...read more

The entry for the sale of a fixed asset involves recording the proceeds received and removing the asset from the balance sheet.

• Debit the Cash or Bank account for the amount received from the sale

• Credit the Fixed Asset account for the original cost of the asset

• Credit the Accumulated Depreciation account for the total depreciation accumulated on the asset

• Any difference between the sale proceeds and the net book value of ...read more

Sales provision entry is a journal entry made to account for potential future losses on sales.

• Sales provision is a liability account on the balance sheet.

• It is created when there is a likelihood of returns, discounts, or warranty claims on sales already made.

• The entry involves debiting the provision for sales account and crediting the relevant expense account (e.g. provision for sales returns).

The golden rules of accounting guide the recording of financial transactions in a systematic manner.

• 1. Debit what comes in, credit what goes out. Example: When a company purchases inventory, it debits the inventory account.

• 2. Debit the receiver, credit the giver. Example: When a company receives cash from a customer, it debits the cash account and credits the sales account.

• 3. Debit all expenses and losses, credit all i...read more

I aim to advance my career through strategic roles, continuous learning, and leadership opportunities in taxation.

• 1. Transition to a Senior Tax Analyst role to deepen my technical expertise and take on more complex projects.

• 2. Pursue a professional certification, such as CPA or CMA, to enhance my qualifications and credibility in the field.

• 3. Seek opportunities for cross-functional collaboration, working with finance a...read more