Otc Analyst

Otc Analyst Interview Questions and Answers

Updated 10 Jul 2024

Q1. What is Income statement and balance sheet

Ans.

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

View 1 answer

Q2. What is Accrued expenses and gains

Ans.

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

View 1 answer

Q3. Wt is components of profit and loss account

Ans.

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

View 1 answer

Q4. What is Accounting golden rules

Ans.

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

Are these interview questions helpful?

Q5. What is depreciation and amortization

Ans.

Depreciation and amortization are accounting methods used to allocate the cost of tangible and intangible assets over their useful lives.

Depreciation is the allocation of the cost of tangible assets (such as buildings, machinery, vehicles) over their useful lives.
Amortization is the allocation of the cost of intangible assets (such as patents, copyrights, trademarks) over their useful lives.
Both depreciation and amortization are non-cash expenses that reduce the reported inco...read more