S M Support & Services Interview Questions and Answers

Buying equipment affects all 3 financial statements

• On the income statement, the purchase will be recorded as an expense, reducing net income

• On the balance sheet, the equipment will be recorded as an asset, increasing total assets

• On the cash flow statement, the purchase will be recorded as a cash outflow from investing activities

The balance sheet for banking sector shows the assets, liabilities and equity of the bank at a specific point in time.

• Assets include cash, loans, investments, and property

• Liabilities include deposits, loans from other banks, and bonds

• Equity includes the bank's capital and reserves

• The balance sheet must balance, with assets equaling liabilities plus equity

• The balance sheet is used to analyze the financial health of the bank

A bond is a type of debt security issued by companies or governments, while a debenture is a type of bond that is not secured by collateral.

• Bonds are secured by collateral, while debentures are not.

• Bonds have a fixed interest rate, while debentures may have a floating interest rate.

• Bonds are typically issued by companies or governments to raise capital, while debentures are often issued by corporations.

• Examples of bonds include Treasury bonds and corporate bonds, while exampl...read more

The Eurozone debt crisis was a financial crisis that occurred in the European Union from 2009 to 2012.

• The crisis was caused by a combination of factors, including high government debt, low economic growth, and a lack of competitiveness.

• Some countries, such as Greece, had borrowed heavily and were unable to repay their debts, leading to fears of default.

• The crisis led to bailouts of several countries by the European Union and the International Monetary Fund.

• Austerity measures ...read more

A deferred tax asset is an accounting concept that represents a future tax benefit for a company.

• It arises when a company has overpaid taxes or has carried forward tax losses from previous years.

• It can be used to offset future tax liabilities and reduce the company's tax bill.

• Examples include tax credits, unused tax deductions, and net operating losses.

• Deferred tax assets are recorded on the balance sheet as an asset.

• They are subject to regular review and may need to be writt...read more