Executive Account

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“Executive Accounts Frequently Asked Questions by expert members with experience in Executive Accounts. These questions and answers will help you strengthen your technical skills, prepare for the new job test and quickly revise the concepts”



83 Executive Account Questions And Answers

81⟩ Explain Accounting for VC money in financials?

It depends on the form in which the money comes in. If it was invested as equity (either Common or Preferred Stock), it shows up on the balance sheet as Paid in Capital. If it came in as debt (such as bridge loan, secured note, etc.) it shows up as debt that must be repaid by the company.

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82⟩ Explain what is cash flow and fund flow?

Cash flow and funds flow: cash flow means direct entry of cash in your business and exit of the same funds flow means entry of funds (cash funds or non cash funds) and their exit non cash funds may mean rise in current assets or fall in current liabilities which was not due to any cash movement

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