10+ Acuity Knowledge Partners Interview Questions and Answers for Freshers

Global financial markets are currently volatile due to various factors such as geopolitical tensions, trade wars, and economic uncertainties.

• Geopolitical tensions, such as the conflict between the US and Iran, have led to market fluctuations.

• Trade wars, particularly between the US and China, have created uncertainty and impacted investor confidence.

• Economic uncertainties, including Brexit and slowing global growth, have also contributed to market volatility.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. DCF stands for Discounted Cash Flow. Investment banks and private equity firms differ in their focus and activities.

• EBITDA is a measure of a company's profitability before accounting for interest, taxes, depreciation, and amortization expenses.

• DCF is a valuation method used to estimate the value of an investment based on its expected future cash flows.

• Investment banks primarily provide financia...read more

Operating, investing, and financing activities are three categories used in financial reporting to classify the cash flows of a business.

• Operating activities involve the day-to-day operations of the business, such as sales, production, and expenses.

• Investing activities include the purchase and sale of long-term assets, such as property, equipment, and investments.

• Financing activities involve raising capital through debt or equity, as well as repaying debt and distributing div...read more

Alpha in financial markets is a measure of an investment's performance compared to a benchmark index.

• Alpha is used to assess the skill of a portfolio manager in generating returns above the market return.

• A positive alpha indicates outperformance, while a negative alpha indicates underperformance.

• Alpha is often used in conjunction with beta, which measures the volatility of an investment compared to the market.

Liquity, activity, and solvency ratios are financial metrics used to assess a company's financial health and performance.

• Liquity ratios measure a company's ability to meet short-term obligations using its liquid assets. Examples include current ratio and quick ratio.

• Activity ratios assess how efficiently a company is using its assets to generate revenue. Examples include inventory turnover ratio and accounts receivable turnover ratio.

• Solvency ratios evaluate a company's abili...read more

Improving decreasing working capital involves managing inventory, accounts receivable, and accounts payable effectively.

• Optimize inventory levels to reduce excess stock and free up cash

• Implement efficient accounts receivable processes to shorten payment cycles

• Negotiate longer payment terms with suppliers to improve cash flow

• Monitor and analyze cash flow regularly to identify areas for improvement

I would never participate in any illegal activities, including money laundering.

• Politely decline the offer and explain that you do not engage in illegal activities.

• Report the incident to the appropriate authorities if necessary.

• Maintain ethical standards and integrity in all professional dealings.

Yes, Israel is considered a sanctioned country by some countries and organizations.

• Israel is not sanctioned by all countries, but some countries and organizations do have sanctions in place.

• Sanctions may include restrictions on trade, financial transactions, and travel.

• Examples of countries that have imposed sanctions on Israel include Iran and some Arab League countries.

GDP measures the value of goods and services produced within a country, while GNP measures the value produced by a country's residents, regardless of location.

• GDP only includes production within a country's borders, while GNP includes production by a country's citizens regardless of location.

• GDP is used to measure a country's economic output, while GNP is used to measure a country's economic strength.

• For example, if a Japanese company produces goods in the US, the value of th...read more

AML stands for Anti-Money Laundering, a set of regulations and procedures designed to prevent the illegal generation of income.

• AML refers to the laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.

• Financial institutions are required to have AML programs in place to detect and report suspicious activities.

• Examples of AML measures include customer due diligence, transaction monitoring, and reporting of su...read more

CDD stands for Customer Due Diligence and EDD stands for Enhanced Due Diligence. They are processes used by financial institutions to assess and manage risk associated with their customers.

• CDD is a standard process of verifying the identity of customers and assessing their risk level.

• EDD is a more in-depth process that involves additional scrutiny for high-risk customers.

• CDD is typically done for all customers, while EDD is reserved for customers who pose a higher risk.

• Exampl...read more

Sanction refers to a penalty or measure imposed on individuals, entities, or countries for violating laws or regulations.

• Sanctions can include financial penalties, trade restrictions, travel bans, and asset freezes.

• They are often imposed by governments or international organizations to enforce compliance with laws or policies.

• Examples of sanctions include the United Nations sanctions on North Korea for its nuclear weapons program, and the US sanctions on Iran for its human ri...read more