Important Interview Questions for Finance & Accounts Job Interview

In this post we are going to tell you Important Interview Questions for Finance & Accounts Job Interview . This is an exhaustive list and you can select questions as per the job profile you are going for Interview

Important Interview Questions for Finance & Accounts Job Interview :

1. What is arbitrage ?

2. How would you evaluate the financial strength of an organization from its balance sheet ?

3. Do you subscribe to the view that for a new enterprise depreciation should be provided on the basis of written down value (wdv) of assets to maintain uniformity with depreciation rules as per income tax act ?

4. What is debt-equity ratio ? Explain the significance. Is it advisable for an organization to have higher debt or equity if, an enterprise is putting up a totally new project ?

5. How would you evaluate investments in respect of capital intensive projects of say,  1000 to  1500 crores ?

6. What is operating leverage and what is financial leverage ?

7. Does a higher net profit always represent a surplus cash flow ?

8. How do you distinguish between capital employed and net worth ? How are these calculated ?

9. Your company has an equity paid up capital of  100 crores and the free reserves of  50 crores as on 31.03.2008. The loan outstanding as on that date was  70 crores. The company has to borrow  100 crores as part of capital investment programme. As the chief finance officer of the company, please advise the board on the statutory provisions of borrowing in this regard.

10. What is “demat” ? How does dematerializing the shares benefit the company issuing shares and the investor ?

11. What are intangible assets ?

12. What do you understand by IRR and “payback” period ?

13. What is the meaning of free cash flow ?

14. What do you understand by tax- deductible interest and tax shield on interest payment ?

15. Your company has placed an award of contract for supply of machinery from UK. As per the terms of payment, a letter of credit (L/C) is to be opened. Discuss how you will open a L/C.

16. Your company has a provident fund trust. As secretary of the trust, how will you invest the trust funds and in which securities adhering to statutory provisions ?

17. How is the taxable income of a company derived from its accounts ? Mention the major items of reconciliation.

18. How would you treat the following items in the accounts ?

A. Subsidy received from the central government on installation of anti-pollution equipment.

B. Subsidy received from the government for setting up a factory in a backward area.

C. Liability for excise duty in respect of goods manufactured but not yet cleared from the bonded warehouse.

19. What do you understand by the term credit rating and what are its advantages ?

20. What do you understand by the term “corporate governance” ?

21. What do you understand by public financial institution, all-India financial Institution and non-banking finance company ?

22. Distinguish between FPO and IPO ?

23. How to pledge ?

24. What is non-performing asset (NPA) ? What are the implications of NPAs to the borrower and the lender ?

25. What are the various risks a lender will have to take in respect of short- term, medium term and long-term lending ?

26. What are the various parameters a lender will look at before deciding to fund a project ?

27. What parameters should be kept in view to determine the period of a term loan while funding a project ?

28. What is the difference between bond and debenture ?

29. What do you understand by disinvestment ?

30. What is spread ?

31. What is margin money ?

32. What is working capital ?

33. What is commercial paper ? Why companies use them ?

34. How is working capital requirement assessed ?

35. What are the conditions for a company to raise equity funds from the capital market ?

36. What is the internal control system give examples of internal control System.

37. What are the various methods of funding working capital ?

38. What is a letter of comfort and how is it different from a letter of Guarantee ?

39. In an import contract for which payment is by letter of credit, if the goods imported turn out to be damaged, can the payment under letter of credit be stopped ? If not, what are the recourses available to the importer ?

40. Under a letter of credit, if the documents are received and the opener has no funds available in the account, is the opening bank obliged to remit ?

41. Can Indian mutual funds invest in shares and other securities abroad ?

42. What is a debt recovery tribunal ?

43. Is it mandatory for non-banking financial companies to have registration with RBI ?

44. What is a universal bank ?

45. What is a debt- trap ?

46. What is a “standby letter of credit” ?

47. What are ECS and EFT in banking terminology ?

48. What is an e-cheque ?

49. What is meant by payable at par facility provided by a bank to its clients ?

50. What do we mean by treasury management in a company ?

51. What do we mean by wealth management for individuals ?

52. What is asset securitization ?

53. What in MIS Reporting ?

54. What do you look at when a Financial Statement is given to judge the creditability of the company ?

55. Explain journal entries and accounting processes.

56. Explain ratios analysis

57. What controls may be incorporated in accounts payable

58. What is Net worth of a company ?

59. What is fair value of an asset ?

60. Explain debtors. How do you deal with them in books ?

61. What is Diluted EPS, How it is Calculated, Which companies required to disclose diluted EPS ?

62. What are the assumptions while doing Actuarial Valuation for Gratuity ?

63. What is process to avail loan ?

64. What are Qualified Institutional Placements ?


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