ACCOUNTING QUESTIONS

1.What is sales accounting journal entry?

Ans- Bank /Cash Account debit

To Sales Account Credit

2. What are the three golden rules of accounting?

Ans-a) What comes in debit, what goes out credit.

b)Debit the receiver , credit the giver.

c)expenses and loss- credit , incomes and gains- credit

3. What is deferred revenue? Explain as example?

Ans- deferred revenue is the amount which a company receives before delivering the goods and
services.it is like an advance payment.

Example- company X orders raw material to vendor and makes advance payment of 1 lakh. That
advance payment of 1 lakh will get considered as deferred revenue for vendor.

4. Why companies record deferred revenue?

Ans- when someone pays in advance to the vendor then it becomes liability of the vendor to deliver
goods in near future so the amount gets accrued as deferred revenue in his books of accounting.

5.What is recurring bill?

Ans- when a person pays something on a regular scheduled time for the good and services he
received and the seller automatically generates bill for that after that scheduled time then that bill is
known as recurring bill.