Otc Analyst Interview Questions and Answers

Income statement shows a company's financial performance over a period of time, while balance sheet shows its financial position at a specific point in time.

• Income statement includes revenues, expenses, and net income for a specific period.

• Balance sheet includes assets, liabilities, and equity at a specific point in time.

• Income statement helps assess profitability, while balance sheet helps assess financial health.

• Example: Income statement - sales revenue, operating expenses,...read more

Accrued expenses and gains are amounts that have been incurred but not yet paid or received.

• Accrued expenses are expenses that have been incurred but not yet paid, such as salaries, rent, and utilities.

• Accrued gains are revenues that have been earned but not yet received, such as interest income or sales revenue.

• Accrued expenses and gains are recorded in the financial statements to reflect the true financial position of a company.

• These amounts are typically adjusted at the en...read more

Components of profit and loss account include revenue, expenses, gross profit, operating profit, net profit, and taxes.

• Revenue: Income generated from sales of goods or services

• Expenses: Costs incurred in the production or operation of the business

• Gross Profit: Revenue minus the cost of goods sold

• Operating Profit: Gross profit minus operating expenses

• Net Profit: Operating profit minus taxes and other expenses

• Taxes: Amount paid to the government based on profits

Accounting golden rules are basic principles that guide the preparation of financial statements.

• Golden rule of accounting is 'Debit the receiver, credit the giver.'

• There are three main golden rules: Personal Account, Real Account, and Nominal Account.

• Personal Account: Debit the receiver, credit the giver. Example: Cash received from John - Debit Cash, Credit John.

• Real Account: Debit what comes in, credit what goes out. Example: Purchase of machinery - Debit Machinery, Credit ...read more