100 Finance interview questions

100 Finance interview questions

Q: How would you choose to buy a particular stock?
Q: Why might a company choose debt over equity financing?
Q: Where is the market going?
Q: What major factors drive mergers and acquisitions?
Q: What is goodwill? How does it affect net income?
Q: What is working capital?
Q: What are deferred taxes?
Q:Can you describe a recent situation in which you accomplished an important objective in a brief period of time?
Q: How do you take challenges?
Q: Are you willing to work in shifts?
Q: What is the thing you like the most in the world? Why?
Q: What is the thing you dislike the most in the world? Why?
Q: What does success mean to you?
Q: How do you define failure?
Q: What is contingency liability?
Q: How do you value a company?
Q: You've been asked to reduce the budget by 8%. What criteria will you use in identifying the budget reductions?
Q: Who is a more senior creditor, a stockholder or a bondholder?
Q: What is the difference between accounts and finance?
Q: Explain fixed cost, variable cost and marginal cost?

Q: What is Break Even Point? What does it signify?
Q: What is the purpose of chargeback?
Q: What is MIS report and do you prepare it?
Q: Why are you leaving the organization you work for?
Q: How much time do you need to join the organization?
Q: Are you aggressive?
Q: What makes you a good manager?
Q: What motivates you the most?
Q: What skills and abilities do you have?
Q: Is there anything you want to ask?
Q:If you were hired for this job, what areas would you make an immediate impact?
Q:In what areas do you think you will need guidance?
Q:How will you approach learning this "new" job?
Q:How will you approach acquiring new skill sets?
Q:Describe the most difficult situation you have faced in your career and how you managed it.
Q:Describe some problems you encountered in your most recent position and ow you resolved them.
Q:What specific steps do you utilize in solving workplace problems?
Q: What experience have you had in fixed assets accounting?
Q: How can you create Budgets for daily pods?
Q: How to use special and pair value sets?
Q: What is consolidation?
Q: Why depreciation is not charged on land?
Q: Can u explain me the flow in General ledger?
Q: What is meant by group chart of accounts in sap fico ?
Q: Describe yourself.
Q: Tell me about your educational background?
Q: What do you know about the organization?
Q: How do you justify the job?
Q: Why do you want this job?
Q: What do you want to work with this organization?
Q: Where do you see yourself five years down the line?

Q: What are your strengths?
Q: What is our company’s stock price? How would you forecast the future stock price for next year?
Q: How important does Accounts receivable for small business and why?
Q: What are the goals of Accounts receivable?
Q: What are the powerful softwares that could be used for doing efficient Accounts receivable?
Q: What are the strategies to be followed for preparing Accounts receivable?
Q: How debtors play its role in Accounts receivable?
Q: Who is responsible for maintaining the Accounts receivable in an organization?
Q: How important is Accounts receivable to business?
Q: What do you mean by Accounts payable cycle?
Q: What is Trial Balance?
Q: What is difference between account payable and bills payable?
Q: How to account freight cost, handling charges,purchase tax at the time of raising a Purchase Order?
Q: What is Reconciliation Statement ?
Q: How do you answer this question "what is company code".
Q: Is it necessary to create Sundry creditors?
Q: What is the meaning of TDS? How it is charged?
Q: What is interest on Capital?
Q: What is Pool rate?
Q: What the procedures or process involved in the preparation for the audit?
Q: What is Web Audit?
Q: What are the different types of internal audit?
Q: What is the difference between an internal audit and the annual external audit?
Q: What is Internal Audit?
Q: What is meant by Single Audit process?
Q: Where is Audit Data Stored?
Q: What is meant by computer auditing?
Q: What are the reasons for getting audited?
Q: What do 'income assessed' and 'non-income assessed' mean?
Q: What is authorized share capital?
Q: What is paid up share capital?
Q: How much depreciation to be calculated for fixed assets older than 5 years?
Q: What is accumulated depreciation?
Q: What are the journal entries which get passed from asset purchasing to asset retirement?
Q: What is fictitious assets?
Q: What is the difference between the different depreciation methods?
Q: What are the activities present in payroll task?
Q: What is Payroll Disbursements Journal?
Q: What are the steps in Payroll Management?
Q: What is the software efficient for carrying out payroll tasks?
Q: What is the difference between paycheck and Payslip?
Q: How advantage is payroll for small business?
Q: What is Payroll Journal?

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TYPES OF DEBENTURES:

TYPES OF DEBENTURES:

There are many kind of debentures that are stated as follows. These can be included in memorandum of association

Secured Debentures: Debentures issued under a security is created in the company assets. The charge rate may be floating or fixed .The  floating charge rate direction includes all of assets that not includes to the creditors secured .

•   Unsecured Debentures: These debentures will not include securities or company assets A floating charge will be created on these kind of debentures.
  
  
•  Redeemable Debentures: Payed on the fixed date of the proper point either in fully paid or in Installments during the sprightliness clip of the time. Debentures are redeemed payment at either premium or par.
    
• Irredeemable Debentures: Debentures can also called as Conceptual debentures.These debentures payable when company is winding. or certain date of time.
  
  
•  Convertible Debentures:Debentures can also convert to normal equity shares. Can be convertible fully or partially.
  
  
•  Non-Convertible Debentures : There is no chance to debentures holders to change into normal shares . The most common debentures issues by the companies.
  
  
•  Specific Coupon Rate Debentures: Which is also called as coupon range debentures. The given order may either be unmoving or floating. The floating part grade is commonly tagged according to coupon rate.
  
  
•  Zero Coupon Rate Debentures:  Issues at specific coupon rate. It can be fixed or floating. Usually the interest are is near to bank rate.
  
  
•  Registered Debentures: Name, addresses and particulars of debentures holders included in the books of the company.
  
  
•  Bearer Debentures: These debentures holders will not maintain any record about the  debentures holders in the company books.

Stock Exchange Functions:

 Stock Exchange Functions:
A Stock Exchange is a place whether incorporated or not assisting, regulating and controlling to carry the particular transaction in buying, selling and dealing with the securities.

Raising Business Capital:
Some companies invest the surplus amounts in the form of securities and to earn capital gains.that helps to rise the capitals of the business

Encourages Savings:
It encourage the savings for investor to save funds that are invested in the shares (capital gains) Provides a mart for the trading of securities to individuals and organizations. Seeking to their action or overmuch finances through the purchase of securities.

Facilitating Economic or Company Growth:
It also facilitates to economic growth for expanding the product lines, distribution channels, market share and other necessary business assets.

Redistribution of Wealthiness:
Redistribute wealth by capital gains that are gained from their investments. Management records of circle a broad and diversified reach of owners, companies mostly lean to alter on their management standards and efficiency in dictate to cater the requirements of their shareholders and the writer tense rules for unrestricted corporations imposed by world inventory exchanges and the government.

Barometer of Economic Growth:
The rise or fall in price depend upon the demand and supply of the market hence it acts as the barometer of the economic growth.

Provide Physiological Location for Line of Securities:
Helps in purchasing and selling securities to the inverters as and when needed.

Establish Rules & Regulations of Trading of Shares:
Can create their own system of rules and regulations to regulate the stock market , all needed to follow those rules and regulations.

Fair Activities:
it restricts or prohibits  the unfair trade practices.

Effective Activity:
This agency that orders are executed and transactions are resettled in the fastest likely way in acquire mercantilism.

SPECULATORS AND TYPES:

The Main functions of  stock exchange is to allow to buy and sell the shares. It regulates with their own rules and controls to unfair trade practices.there are 4 kinds of speculators in BSE stock exchange.that are as follows:

Bulls:
He is also called as Tejiwala. Bulls always expects in rise in price of the securities.In initial stage they will purchase the shares at low price when the price rises he will sell the shares.He enjoys the gains with rise in prices.he is always an optimistic person.

Bears:
He is also called as Mandiwala. He will sell the shares at the present prices if he thinks the share value will goes down in future. He enjoys the gains with drop in prices. He is pessimistic.

Stags:
He applies shares of new companies for premium allotment, selects the companies only that are having more demand. He will sell those share at gains.

Lame Ducks:
When speculator bulls or bears finds out difficult to provide shares to his clients at promised prices then he will struggle like a lame duck..

TYPES OF PREFERENCE SHARES:

TYPES OF PREFERENCE SHARES:
There are many varieties of preference shares , there 5 types of preference shares are as follows:


Cumulative Preference Shares:
If the a company fails to pay the dividends in a fact twelvemonth, then the holders of these share holders will pay in the future date with the carry forwards of dividends to that date.

Non-Cumulative Preference Shares:
The dividends are payed when the company is in profits. If no profits no dividends are to be paid.

Redeemable Preference Shares:
They hold fast payment schedule where the redemption can be at at payment or par value .

Convertible Preference Shares:
These inter crossed shares provide the choice of converting itself to normal shares at nominative measure and cost.

Participating Preference Shares:
The shareholders get higher dividends, If the profits exceed in certain level in the preference share polices.

Mutual Funds & Types

Mutual Funds & Types

A mutual funds are those funds that are invested in wide range of shares across the particular shares. this is done in order to diversify the risk across all the securities because all the securities will not move on the same direction.

Open-Ended Funds
Open ended funds are those funds that allows subscription or repurchase on continuous basis. they will be no maturity period
the schemes includes liquidity. those funds can buy or sell units at NAV (Net Asset Value).

Close Ended funds
Close ended funds are those funds that allows subscription or to buy sell on stipulated period i.e 5-7 years. this kind of schemes announces NAV on every weekly.

Balanced Funds
 This funds includes the combination of growth and income funds.this is suitable for the investor for who are looking for the moderate growth.

Money Market or Liquid Fund
This mutual funds are invested under the shot term period money markets like treasury bills,government securities, certificates of deposit and inter-bank call money, commercial paper, etc. the main aim is to provide the liquidity.

Gilt Fund
These funds invest only in government securities that includes no risk. The NAV may change in this  funds based on the  fluctuate in interest rates.

Index Funds
Invests under the particular index of BSE stock exchange ( nifty 50 ).

TYPES OF SHARES:

TYPES OF SHARES:

 

The articles of association of the society will define the rights  and duties accrue exclusive to members who are shareholders in a companion. Where a organization has a distribute to shares and debentures to rise the capital.

Ordinary Shares or Equity Shares:

• Equity Shares is also called as ordinary shares.
• Ordinary shares are those share which does not carry any kind of voting rights.
•  They enjoy higher rate of dividend when the company is earning more profits.
  

Preference Shares:

•  They enjoy advantageous of voting rights,
•  Dividend is distributed in fixed rate..
• Preference share holders dividends will enjoy a distribute which is desirable as to dividend than ordinarily entitles or ordinary shares.
• There are 5 kinds of Preference shares, find types of preference shares here
  

Redeemable Shares
Redeemable shares are those shares organization is entitled to buy again from its members. Where shares are cancels the shares companionship generally cancels them. However, a funds apportion is a percentage which is preserved on redemption by the troupe and can later be issues again.

Bonus Shares
Bonus shares are those shares issued to equilibrium to their existing shareholders, issues as fully  or partly not to paid them. These shares are issue d when company are earning good amount of profits.

ACCOUNTS-SUBJECT

Accounting Cycle

Accounting Cycle

The process of steps that are included from collection of transactions to the end of the financial statements. The steps as follows:

1) Data collection from the transactions happen

2) Posting in to journals

3) Posting in to Ledger

4) Preparing the trail balance with out adjustments

5) Adjustments to the trail balance prepared

6) Organizing the books of final accounts

7) Closing the books of accounts

8) Posting the post closing trail balance to verify the books of accounts

This steps also knows as bookkeeping cycle