Hardware Analyst Interview Questions and Answers

Accounting ratios are financial metrics used to analyze and evaluate a company's financial performance.

• Accounting ratios are calculated by comparing different financial figures from a company's financial statements.

• They provide insights into a company's liquidity, profitability, efficiency, and solvency.

• Examples of accounting ratios include the current ratio, return on equity, gross profit margin, and debt-to-equity ratio.

• These ratios are useful for investors, creditors, and ...read more

The golden rules of accounting are fundamental principles that guide the recording and reporting of financial transactions.

• The first golden rule is the Personal Account rule, which states that all personal accounts are debited for the receiver and credited for the giver.

• The second golden rule is the Real Account rule, which states that all real accounts are debited for what comes in and credited for what goes out.

• The third golden rule is the Nominal Account rule, which states...read more

Reconciliation is the process of comparing two sets of records to ensure their accuracy and consistency.

• Reconciliation is used in various fields such as accounting, finance, and banking.

• It involves comparing two sets of data, such as bank statements and company records, to identify any discrepancies.

• The goal of reconciliation is to ensure that the records are in agreement and to identify and resolve any errors or discrepancies.

• Journal entries are used to record the adjustment...read more

A profit and loss statement summarizes revenues, costs, and expenses to determine net profit or loss over a specific period.

• Shows total revenue generated from sales.

• Lists cost of goods sold (COGS) to calculate gross profit.

• Includes operating expenses like salaries and rent.

• Accounts for non-operating income and expenses, such as interest.

• Final line indicates net profit or loss, guiding business decisions.