Acuity Knowledge Partners Interview Questions, Process, and Tips

Questions were related to Valuation and Industry research. General basic understanding of finance. Some questions related to Excel.

Q1. Rechecking all the concepts discussed in Round 1, and asked family background, Past experiences, about Internships etc.
Add your answer
Q2. What is IRR and how is it different from Xirr?
Ans. 
IRR stands for Internal Rate of Return, while XIRR is a function in Excel used to calculate the internal rate of return for a series of cash flows.
• IRR is a financial metric used to evaluate the profitability of an investment by calculating the rate of return that makes the net present value of all cash flows equal to zero.

• XIRR is a function in Excel that calculates the internal rate of return for a series of cash flows...read more
Answered by AI
Add your answer
Q3. Explain the Gordon Growth Method
Ans. 
The Gordon Growth Method is a way to value a stock based on the present value of future dividends, assuming a constant growth rate.
• Calculates the intrinsic value of a stock by discounting future dividends at a constant growth rate

• Formula: V = D / (r - g), where V is the intrinsic value, D is the expected dividend, r is the required rate of return, and g is the growth rate

• Assumes dividends will grow at a constant rate i...read more
Answered by AI
Add your answer
Q4. While picking up shares which ratio should be seen?
Ans. 
The price-to-earnings (P/E) ratio is commonly used to evaluate shares when picking up shares.
• Price-to-earnings (P/E) ratio is a key metric to assess the valuation of a company's shares.

• A low P/E ratio may indicate that a stock is undervalued, while a high P/E ratio may suggest overvaluation.

• Comparing the P/E ratio of a company to its industry peers can provide valuable insights.

• Investors should also consider other rati...read more
Answered by AI
Add your answer

Q1. Basics of accounts
Add your answer
Q2. Depreciation ,golden rule of accounting ,basics of finance
Add your answer

Q1. Some more accounting questions, and about diff between operating and finance lease
Add your answer
Q2. Explained cash flow, income statement balance sheet
Ans. 
Cash flow, income statement, and balance sheet are key financial statements used to assess a company's financial health.
• Cash flow statement shows the inflow and outflow of cash over a period of time.

• Income statement shows the company's revenues, expenses, and profits over a specific period.

• Balance sheet provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and e...read more
Answered by AI
Add your answer

Q1. Ratios analysis, financial statements,Gk, behavioural questions
Add your answer

Q1. About day to day work role at current company ?
Add your answer
Q2. Questions on ratio analysis ?
Add your answer

Q1. SALARY NEGOTIATION
Add your answer

Q1. Tell me about yourself
Add your answer
Q2. Which financial service product you have worked on?
Ans. 
I have worked on developing a mobile banking app for a major financial institution.
• Led cross-functional team to design and launch new features

• Conducted market research to identify customer needs and preferences

• Implemented security measures to protect user data

• Improved user experience through regular testing and feedback

• Collaborated with stakeholders to prioritize product roadmap
Answered by AI
Add your answer
Q3. How did you researched about this product?
Add your answer
Q4. How do you do hypothesis testing?
Ans. 
Hypothesis testing involves formulating a hypothesis, collecting data, analyzing the data, and drawing conclusions.
• Formulate a null hypothesis and an alternative hypothesis

• Collect relevant data to test the hypothesis

• Choose a statistical test based on the type of data and hypothesis being tested

• Set a significance level (alpha) to determine the threshold for rejecting the null hypothesis

• Analyze the data using the chosen ...read more
Answered by AI
Add your answer

Q1. What is AML ..
Ans. 
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 ...read more
Answered by AI
Add your answer
Q2. What is CDD EDD
Ans. 
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 E...read more
Answered by AI
Add your answer

Q1. If i give you 10 lakh rupee, help me to launder.
Ans. 
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.
Answered by AI
Add your answer
Q2. What is sanction
Ans. 
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 weap...read more
Answered by AI
Add your answer
Q3. Why Russia is sanctioned
Add your answer
Q4. Is ISRAEL a sanctioned country.
Ans. 
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.
Answered by AI
Add your answer