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The Accountant Job Interview Questions And Answers
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What is working capital?
Working capital is the cash a company has on hand, which is used to run its day-to-day operations. It is calculated by subtracting current liabilities from current assets.
Walk me through the three financial statements?
The three financial statements are the Income Statement, the Balance Sheet, and the Cash Flow Statement. A fourth statement, the Statement of Retained Earnings, is sometimes added.
What is working capital?
Nothing happens.
What does having negative working capital mean?
The difference between a company’s current assets and its current liabilities. Negative working capital does not ensure that a company is in financial trouble, but it may.
What’s the difference between deferred revenue and accounts receivable?
Deferred revenue is the amount of money a company has earned for sales that have been made but have not yet been invoiced. Accounts receivable are invoiced amounts owed by customers.
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