Bookkeeper Question:

Tell me in cash basis accounting, how would your record a $1200 annual insurance premium?

Bookkeeper Interview Question
Bookkeeper Interview Question

Answer:

The right answer for cash basis is debit insurance expense $1200, credit cash or accounts payable. All bookkeepers should get this right.


Previous QuestionNext Question
Suppose if the bank account is off $0.92. How long will you spend looking for the problem and what steps will you take to find it?Tell me how would you record a $1200 annual insurance premium using accrual accounting?