Tell me how would you record a $1200 annual insurance premium using accrual accounting?
Submitted by: MuhammadThe correct answer here is Debit Prepaid Insurance $1200, Credit Cash or Accounts Payable. Prod them to find out when insurance expense is recognized. It should be $100/month with a Debit to Insurance Expense and a Credit to Prepaid Insurance. If the candidate cannot answer this question, don't expect them to keep your books based on an accrual accounting. You will want to depend on someone else for management reports.
Submitted by: Muhammad
Submitted by: Muhammad
Read Online Bookkeeper Job Interview Questions And Answers
Top Bookkeeper Questions
☺ | Tell me about a time you faced an ethical dilemma? |
☺ | What are Assets and Liability? |
☺ | Tell me can you handle customer invoicing? |
☺ | Tell me how does customer invoicing relate to the accounts receivable? What is an Asset? What is a Liability? Define a journal entry? |
☺ | Describe about a time when you didn\'t agree with something your boss asked you to do? |
Top Basic Professional Categories
☺ | Electrician Interview Questions. |
☺ | Agriculture Interview Questions. |
☺ | Cabin Crew Interview Questions. |
☺ | Police Officer Interview Questions. |
☺ | Firefighter Interview Questions. |