CBRE - RE Accountant Interview Prep
Walk me through the 3 financial statements - answer The balance sheet shows a
company's assets, its liabilities, and shareholders' equity. The income statement
outlines the company's revenues and expenses. The cash flow statement shows the
cash flows from operating, investing, and financing activities.
What is Cash Accounting? - answer Recognizes revenues and expenses when the
money exchanges hands.
What is Accrual Accounting? - answer Recognizes revenues and expenses when the
transaction happens and the services are complete.
What is an Invoice and how is it tracked? - answer A document that maintains a record
between a buyer and a seller much like a receipt.
What statement would you use to value the overall health of a company? - answer The
Cash Flow Statement provides a true picture of how much cash the company is
generating.
What is Working Capital? - answerMeasures a company's liquidity. current assets -
current liabilities. more narrowly defined as current assets (excluding cash) less current
liabilities (excluding interest bearing debt).
If cash collected from customers is not yet recorded as revenue, what happens to it? -
answerIt usually goes into "Deferred Revenue" on the balance sheet as a liability if the
revenue has not been earned yet.
What is the difference between Deferred Revenue and Accounts Receivable? -
answerDeferred revenue represents cash received from customers for services or
goods not yet provided. Accounts receivable represents cash owing from customers for
goods/services already provided.
How do you record PP&E and why is it so important? - answerThere are essentially four
areas to consider when accounting for PP&E on the balance sheet: initial purchase,
depreciation, additions (capital expenditures), and dispositions. In addition to these four,
you may also have to consider revaluation. For many businesses, PP&E is the main
capital asset that generates revenue, profitability, and cash flow.
Walk me through the 3 financial statements - answer The balance sheet shows a
company's assets, its liabilities, and shareholders' equity. The income statement
outlines the company's revenues and expenses. The cash flow statement shows the
cash flows from operating, investing, and financing activities.
What is Cash Accounting? - answer Recognizes revenues and expenses when the
money exchanges hands.
What is Accrual Accounting? - answer Recognizes revenues and expenses when the
transaction happens and the services are complete.
What is an Invoice and how is it tracked? - answer A document that maintains a record
between a buyer and a seller much like a receipt.
What statement would you use to value the overall health of a company? - answer The
Cash Flow Statement provides a true picture of how much cash the company is
generating.
What is Working Capital? - answerMeasures a company's liquidity. current assets -
current liabilities. more narrowly defined as current assets (excluding cash) less current
liabilities (excluding interest bearing debt).
If cash collected from customers is not yet recorded as revenue, what happens to it? -
answerIt usually goes into "Deferred Revenue" on the balance sheet as a liability if the
revenue has not been earned yet.
What is the difference between Deferred Revenue and Accounts Receivable? -
answerDeferred revenue represents cash received from customers for services or
goods not yet provided. Accounts receivable represents cash owing from customers for
goods/services already provided.
How do you record PP&E and why is it so important? - answerThere are essentially four
areas to consider when accounting for PP&E on the balance sheet: initial purchase,
depreciation, additions (capital expenditures), and dispositions. In addition to these four,
you may also have to consider revaluation. For many businesses, PP&E is the main
capital asset that generates revenue, profitability, and cash flow.
