Acuity Knowledge Partners Credit Analyst Interview Questions and Answers

Equity is calculated by subtracting liabilities from assets.

• Equity represents the residual value of a company's assets after deducting liabilities.

• It is calculated by subtracting total liabilities from total assets.

• Equity can also be calculated as the sum of share capital and retained earnings.

• For example, if a company has total assets of $1 million and total liabilities of $500,000, its equity would be $500,000.

• Equity...read more

The balance sheet and profit and loss account are interrelated financial statements that provide a comprehensive view of a company's financial health.

• The balance sheet shows a company's assets, liabilities, and equity at a specific point in time, while the profit and loss account shows a company's revenues, expenses, and net income over a period of time.

• Changes in the balance sheet can impact the profit and loss accoun...read more