Sample Questions and Sample Answers

Q:� What are the major line items of a cash flow statement?� Walk me through.

A:� The cash flow statement starts with revenues and expenses. It als includes Current Assets and Current Liabilities. It includes major items like incoming sales, loans, labour, materiasl, purchased capital, loan repaid, and taxes

Q:� Why have you been not working for a long time now?

A:� After my job was completed, I made a personal decision not to accept the first job offer that would come along. I found out in the latter months that something positive would always come out of the negative, IF you try hard, and focus on what you really like.� I wanted to think through every offer and decide what is best for me, and what I really want.” Identify the companies you have in mind.

Q.� Why should deferred taxes be accounted for?

A:� As one recognizes deferred tax liabilities in its books,� a company should make sure that the tax liability for the year in question should be reflected in that year’s financial documents. This should not carry over to its profits in te successding years. This brings investors to gaining understanding of exactly how much of a company’s profits for a certin period are from its operations (instead of from fiscal savings).