FPA Interview Questions and Answers

Factors considered while calculating working capital requirement in IT business

• Nature of business operations

• Seasonal fluctuations in demand

• Credit terms with suppliers and customers

• Inventory management

• Payment cycles

• Growth plans

• Cost of capital

• Cash reserves

• Accounts receivable and payable

• Projected revenue and expenses

Job costing is the process of determining the cost of a specific job or project to determine its profitability.

• Job costing involves tracking all expenses related to a specific job or project, including labor, materials, and overhead costs.

• To determine the profitability of a project, the total cost of the project is compared to the revenue generated by the project.

• Legal conditions undertaken before MOU may include signing a non-disclosure agreement, outlining the scope of work...read more

Working capital is calculated by subtracting current liabilities from current assets.

• Working capital = Current assets - Current liabilities

• Current assets include cash, inventory, accounts receivable, etc.

• Current liabilities include accounts payable, short-term loans, etc.

• Positive working capital indicates a company can meet its short-term obligations.

• Negative working capital indicates a company may struggle to meet its short-term obligations.

Yes, Link in Excel is a feature that allows you to create a hyperlink to a specific cell or range of cells within the same workbook or to a different workbook or file.

• Link in Excel can be created by selecting the cell or range of cells you want to link to and then right-clicking and selecting 'Hyperlink'.

• You can also create a link by using the 'Insert Hyperlink' option under the 'Insert' tab.

• Links can be created to other sheets within the same workbook, to other workbooks, or...read more