Frequently Asked Questions by Users
This is a dedicated space for frequently asked questions from our subscribers. Each year, we get thousands of questions. However, we only pick & choose the most relevant ones.
We answer these questions in a combined effort between volunteers, interns, and our team. It is a constant process of improving the quality of these FAQs, so please be patient with us :)
- What is the formula for net credit sales?
- What is the meaning of set-off in accounting?
- What is the journal entry for outstanding subscription?
- How are provision for doubtful debts treated in trial balance?
- What is a profit and loss suspense account?
- What is the formula to calculate net current assets?
- Expense is Debit or Credit?
- What is the journal entry for rent paid in advance?
- How to do closing stock adjustment entry?
- What is debenture suspense account?
- Is fees earned a debit or credit?
- Is it possible for a company to show positive cash flows but still be in trouble?
- Which accounts are not closed at the end of an accounting period?
- Is purchase order legally binding or can we cancel it?
- Is sales return a debit or credit?
- Can you explain 5 principles of accounting with examples?
- How to do interest on capital adjustment in final accounts?
- How is return outwards treated in trial balance?
- What is the type of account and normal balance of petty cash book?
- How to calculate provision for doubtful debts?
- The balance of petty cash book is an asset or income?
- How to show prepaid expense inside trial balance?
- Is purchase ledger control account a debit or credit?
- What is the journal entry for sale of services on credit?
- What is the difference between receipt, income, payment and expenditure?
- Can you show treatment of provision for doubtful debts in balance sheet?
- Capital is debit or credit?
- What is received cash journal entry?
- How is provision for depreciation shown in trial balance?
- How is return inwards treated in trial balance?
- Is sales ledger control account a debit or credit?
- What is the treatment of closing stock in trading account?
- Is Prepaid Rent a Current Asset?
- What are the examples of contingent assets?
- Is rent received in advance included in taxable income?
- Where are trading expenses in final accounts?
- Can you show treatment of provision for discount on debtors in final accounts?
- What is the normal balance of dividends?
- Why is provision for doubtful debts created?
- Return inwards and Return outwards are deducted from?
- Why are subsidiary books maintained in accounting?
- How is accumulated depreciation shown in trial balance?
- Why is debit written as Dr and Credit written as Cr?
- Can assets have a credit balance?
- Can depreciation be charged in the year of sale?
- Is prepaid expense a fictitious asset?
- Can you please share a list of current assets & current liabilities?
- Is debit balance positive and credit balance negative?
- What is the meaning of credit balance of trading account?
- What is the difference between cost center and cost unit?
- What is the meaning of assets have debit balance and liabilities have credit balance?
- Where is suspense account entered if shown in trial balance?
- What is zero working capital?
- Can I get cash book and bank reconciliation examples?
- What is the journal entry for inventory purchased?
- Is cash book both a journal and ledger?
- Can you share a list of direct and indirect expenses?
- Is retained earnings a debit or credit?
- Are bad debts recorded in income statement?
- What is the meaning of debit balance of trading account?
- What is the process of preparing balance sheet from trial balance?
- Is prepaid insurance a debit or credit?
- Where do contra assets go on a balance sheet?
- What is the difference between debt and liability?
- What are posting references in a journal?
- What is the journal entry for trade discount?
- Why bank reconciliation statement is made?
- Is Income received in advance taxable?
- Liability is debited or credited?
- Can someone share a list of fixed assets and current assets?
- Where is suspense account shown in the financial statements?
- Can someone give examples of deferred revenue?
- Is Loan a current asset?
- Why is income received in advance treated as a current liability?
- Is Income Debit or Credit?
- What are sales returns and allowances?
- Is purchase return a debit or credit?
- What is the meaning of negative working capital?
- Are Bad Debts Liabilities?
- Is accumulated depreciation an asset or liability?
- When, Where and How to disclose contingent asset?
- Where is Amortization shown in financial statements?
- Who is bank reconciliation statement prepared by?
- Why should a ledger be balanced?
- What are core business operations?
- Can you help me with a month-end close checklist?
- List of Tangible and Intangible assets
- What are some examples of chart of accounts?
- What is Debit and Credit in Accounting?
- Is investment an asset?
- What is the process of preparing income statement from trial balance?
- What are some examples of a cost center?
- Are accounts receivable asset or revenue?
- What are branches of accounting?
- Can goodwill be negative?
- Can you share a Debit and Credit Format?
- Is advance received from customer treated as revenue?
- Is goodwill a fictitious asset?
- Is invoice a receipt?
- What are different types of financial statements?
- Can you share a petty cash book format in pdf?
- Which contra account is used in recording depreciation?
- Difference between purchase requisition and purchase order?
- How to calculate days payable outstanding, formula and example?
- Is depreciation an operating expense?
- What all is included in equity?
- What are components of financial reporting?
- What is the difference between asset and inventory?
- Why is financial reporting important?
- Are non current liabilities debt?
- What are some difficult adjustments in final accounts?
- What is the formula for working capital?
- Is deferred revenue a liability?
- What are service center examples?
- What is the beginning and ending balance of an account?
- What is another name for balance sheet?
- How to show outstanding expense in trial balance?
- What is salary received journal entry?
- What is the journal entry for payment to vendor?
- What is the journal entry for investment in subsidiary?
- Is capital an asset or liability?
- How to know if opening balance of an account should be debit or credit
- How to do bad debts adjustment in final accounts?
- Is Income received in advance a liability or asset?
- What is paid wages in cash journal entry?
- What type of account is Purchase Return and Sales Return?
- What is the need, importance, and purpose of final accounts?
- What is the journal entry for salary due?
- What is paid salary by cheque journal entry?
- What is interest received from bank journal entry?
- What is paid telephone bill journal entry?
- What is the journal entry for unbilled revenue?
- What is the journal entry for purchase of machinery?
- What is the journal entry for salary paid in advance?
- What is paid electricity bill journal entry?
- What is the journal entry for purchased goods on credit?
- Can you give me a list of debit and credit items in trial balance?
- What is the journal entry for sold goods on credit?
- What is the journal entry for cash withdrawn from bank?
- What is started business with cash journal entry?
- What is the journal entry for outstanding salary?
- What is journal entry for commission received?
- What is the journal entry for cash withdrawn from bank for office use?
- What is the Journal Entry for Cash Deposit in Bank?
- Can you show 30 transactions of journal, ledger, trial balance, and financial statements?
- Can you give me a list of all liabilities in accounting?
- How to calculate days sales outstanding, any example?
- How to calculate provision for discount on debtors?
- Is Inventory a current asset?
- Where are preliminary expenses shown in the financial statements?
- Where to find equity in accounting?