How do I prepare for a public accounting interview?
In addition to preparing to answer priority questions, use the following tips and resources to interview with confidence:
Reflect on your qualifications such as :a CPA license experience at a public accounting firm and specific areas of expertise. How Do You Record PP&E and Why Is This Important?
There are essentially four areas to consider when accounting for PP&E on the balance sheet: 1) the initial purchase, 2) depreciation, 3) additions (capital expenditures) and 4) dispositions.
In addition to these four, you may also have to consider revaluation (IFRS only, not US GAAP).
For many industries, PP&E is the main capital asset that generat.
How Does An Inventory Write-Down Affect The Three statements?
On the balance sheet, the asset account of inventory is reduced by the amount of the write-down, and so is shareholders’ equity.
The income statement recognizes an expense in either COGS or a separate line item for the amount of the write-down, reducing net income.
On the cash flow statement, the write-down is added back to operating cash flows as .
Under What Circumstances Does Goodwill Increase Or decrease?
When a company buys another business for more than the fair value of its net assets (its equity), goodwill is created.
Therefore, if goodwill increased, it’s because the company acquired another company.
Since goodwill is not usually amortized, it must be tested for impairment.
If goodwill is impaired it must be written down.
However, please note t.
Walk Me Through The Three Financial Statements.
The balance sheetshows, at a point in time, what a company owns (assets), what it owes (liabilities), and what is left over (shareholders’ equity).
The income statement illustrates the company’s revenues and expenses over a period, usually a quarter or year.
The cash flow statement shows the cash flows generated or used in operating, investing and .
What do experienced accountants look for in a job application?
Experienced accountants learn how to do their jobs more efficiently by using advanced tools or software features.
The applicant reveals whether they try to look for ways to continually improve their processes and how to use tools to accomplish this goal.
What to look for in an answer:.
What does an experienced accountant do?
Experienced accountants often have worked with multiple accounting applications or enterprise resource planning systems.
This question allows the applicant to show their familiarity with prominent accounting and business software packages.
What Does Having Negative Working Capital Mean?
Negative working capital is common in some industries, such as grocery retail and the restaurant business.
For a grocery store, customers pay upfront, inventory moves relatively quickly, but suppliers often give 30 days (or more) credit.
This means that the company receives cash from customers before it needs the cash to pay suppliers.
Negative wor.
What Immediately Happens on The Income Statement If Inventory Goes Up by $10?
Nothing.
This is a trick question.
The only immediate impact will be on the balance sheet and cash flow statement.
What Is Working Capital?
Working capitalis typically defined as current assets less current liabilities.
In banking, working capital is normally defined more narrowly as current assets (excluding cash) less current liabilities (excluding interest-bearing debt).
What’s The Difference Between Deferred Revenue and Accounts Receivable?
Deferred revenue represents cash received from customers for services or goods not yet provided.
Accounts receivable represents cash due from customers for goods/services already provided.
When Do You Capitalize Rather Than Expense A purchase?
If the purchase will be used in the ongoing operations of the business (generally for greater than one year), it is capitalized and depreciated/amortized.
However, there are some exceptions: land is not depreciated and goodwill is not usually amortized.
