RJMJ & Associates Accountant Interview Questions and Answers

Cash flow statement shows the actual cash generated and used by a company, while income statement shows the profitability of a company.

• Cash flow statement focuses on cash inflows and outflows, while income statement focuses on revenues and expenses.

• Cash flow statement helps in assessing liquidity, while income statement helps in assessing profitability.

• Cash flow statement includes operating, investing, and financing ac...read more

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance.

• EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization

• It is used to analyze and compare profitability between companies and industries.

• EBITDA excludes non-operating expenses to focus on the core profitability of the business.

• Example: Company A has a net income of $1 milli...read more

Preparation of balance sheet involves listing assets, liabilities, and equity of a company at a specific point in time.

• List all assets owned by the company, such as cash, inventory, and property.

• List all liabilities owed by the company, such as loans, accounts payable, and accrued expenses.

• Calculate the difference between assets and liabilities to determine equity.

• Ensure that the balance sheet balances by following the...read more