40+ E. C. Machines Interview Questions and Answers

Trade confirmation, settlement, reconciliation process and trade lifecycle. Calculation of deal price. Use of Omgeo Alert. CDS, spot, future, swaps.

• Trade confirmation is the process of verifying the details of a trade between two parties.

• Trade settlement is the process of exchanging cash and securities to complete a trade.

• Trade reconciliation is the process of comparing and resolving any discrepancies between the records of the two parties involved in a trade.

• Trade lifecycle ...read more

AML & KYC are regulatory processes to prevent money laundering and terrorist financing. PEP refers to politically exposed persons. Hedge funds are investment funds. AML has three layers: customer due diligence, transaction monitoring, and suspicious activity reporting. Screening involves checking individuals or entities against watchlists.

• AML stands for Anti-Money Laundering and KYC stands for Know Your Customer

• PEP refers to Politically Exposed Persons who are individuals wit...read more

The journal entry for subscription involves recording the receipt of funds from investors, while the journal entry for redemption involves recording the return of funds to investors.

• For subscription, debit the cash or bank account and credit the subscription revenue or capital account.

• For redemption, debit the redemption liability or capital account and credit the cash or bank account.

• Example for subscription: Debit Bank Account $10,000, Credit Subscription Revenue $10,000.

• Ex...read more

Performance fees are fees charged by investment managers based on the performance of the investment, while management fees are fixed fees charged for managing the investment.

• Performance fees are typically a percentage of the investment gains, and are only charged if the investment performs well.

• Management fees are charged regardless of the investment performance, and are typically a percentage of the total assets under management.

• Performance fees are meant to incentivize inve...read more

Private equity is a type of investment where funds are raised from investors to acquire and invest in private companies.

• Private equity firms typically buy a controlling stake in a company and then work to improve its operations and profitability before selling it for a profit.

• Private equity investments are typically made in companies that are not publicly traded.

• Private equity can be used to finance growth, acquisitions, or to restructure a company's operations.

• Examples of pr...read more

PE funds can be classified as buyout funds, growth equity funds, venture capital funds, etc. SUMIF adds cells based on a single condition, while SUMIFS adds cells based on multiple conditions. Waterfall model is a financial structure used in private equity deals. Team management involves leading and motivating a group of individuals to achieve a common goal.

• Types of PE funds include buyout funds, growth equity funds, venture capital funds, etc.

• Example: Buyout funds focus on a...read more

Corporate actions affect NAV production. Examples include stock splits, dividends, and mergers.

• Corporate actions can impact the value of a fund's assets and liabilities

• Stock splits can increase the number of shares outstanding and decrease the NAV per share

• Dividends can decrease the NAV per share

• Mergers can result in changes to the fund's holdings and NAV

• NAV production must be adjusted to reflect the impact of corporate actions

Position and cash reconciliation involves comparing the positions and cash balances to ensure accuracy.

• Position reconciliation involves comparing the securities held in the portfolio to the records of the custodian or broker.

• Cash reconciliation involves comparing the cash balances in the portfolio to the records of the custodian or bank.

• Position breaks occur when there are discrepancies in the securities held, but the cash balance is correct.

• Cash breaks occur when there are d...read more

I have led brainstorming sessions to generate new marketing campaign ideas for our product launch.

• Facilitated brainstorming sessions with cross-functional teams to generate creative ideas

• Encouraged team members to think outside the box and share their thoughts freely

• Used techniques like mind mapping and SWOT analysis to organize and prioritize ideas

• Implemented successful marketing campaigns based on the ideas generated during brainstorming sessions

High water mark and hurdle rate are terms used in finance, while journal entries for prepaid expenses and accruals are common accounting practices.

• High water mark is the highest value that an investment fund has reached, used to calculate performance fees.

• Hurdle rate is the minimum rate of return that a fund manager must achieve before earning performance fees.

• Journal entry for prepaid expenses involves debiting Prepaid Expense and crediting Cash or Accounts Payable.

• Journal e...read more

The 3 types of steps in KYC are Customer Identification Program (CIP), Customer Due Diligence (CDD), and Enhanced Due Diligence (EDD).

• Customer Identification Program (CIP) involves verifying the identity of the customer through documents like ID cards, passports, etc.

• Customer Due Diligence (CDD) involves assessing the risk associated with a customer by gathering information about their identity, address, and financial transactions.

• Enhanced Due Diligence (EDD) is conducted for...read more

Types of fees in mutual funds include management fees, administrative fees, and distribution fees.

• Management fees are charged for managing the fund's investments.

• Administrative fees cover the operational costs of running the fund.

• Distribution fees are paid to brokers and financial advisors for selling the fund to investors.

Different fees applied to mutual funds include expense ratio, front-end load, back-end load, and redemption fee.

• Expense ratio is an annual fee charged by the fund to cover operating expenses.

• Front-end load is a fee charged when purchasing the fund.

• Back-end load is a fee charged when selling the fund.

• Redemption fee is a fee charged when selling the fund within a certain time period.

• Other fees may include account maintenance fees, 12b-1 fees, and exchange fees.

Hedge funds are private investment funds for wealthy individuals and institutions, while mutual funds are open to the public.

• Hedge funds are less regulated and have more flexibility in their investment strategies.

• Hedge funds typically charge higher fees and have higher minimum investment requirements.

• Mutual funds are more accessible to the general public and are regulated by the SEC.

• Mutual funds are typically less risky and have lower fees than hedge funds.

• Examples of hedge f...read more

GP catch up refers to the process of a general practitioner reviewing and addressing any missed or overdue healthcare appointments or screenings with a patient.

• GP catch up involves scheduling appointments for patients who have missed regular check-ups or screenings.

• It ensures that patients receive necessary medical care and monitoring in a timely manner.

• Examples include catching up on vaccinations, cancer screenings, or chronic disease management appointments.

VLOOKUP should not be used when the data is not sorted or when you need to retrieve data from the left of the lookup column.

• Do not use VLOOKUP when the data is not sorted in ascending order.

• Do not use VLOOKUP when you need to retrieve data from the left of the lookup column.

• Instead, use INDEX MATCH function for non-sorted data or when retrieving data from the left.

Waterfall distribution is a method of distributing profits or funds to different levels of investors or stakeholders in a sequential manner.

• Profits or funds are first distributed to the highest level investors before moving down to lower level investors.

• This distribution method ensures that higher level investors receive their share of profits before lower level investors.

• Waterfall distribution is commonly used in private equity and real estate investments.

CDD stands for Customer Due Diligence, while EDD stands for Enhanced Due Diligence. CDD is a standard process to verify customer identity, while EDD is a more thorough investigation for higher risk customers.

• CDD is a basic process to verify customer identity and assess the risk level.

• EDD is a more in-depth investigation conducted for higher risk customers.

• CDD is mandatory for all customers, while EDD is typically reserved for high-risk customers or transactions.

• Examples: CDD ...read more

A hedge fund is a type of investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets.

• Hedge funds are typically only available to high net worth individuals and institutional investors.

• They use a variety of investment strategies, including leveraging and short selling, to generate high returns.

• Hedge funds are less regulated than other types of investment funds and are known for their high fees.

• Examples of hedge ...read more

I follow best coding practices such as writing clean, readable, and maintainable code.

• I always follow coding standards and guidelines set by the team or organization.

• I use meaningful variable and function names to improve code readability.

• I comment my code to explain complex logic or algorithms for better understanding.

• I regularly review my code with peers to ensure quality and adherence to best practices.

Reconciliation is the process of ensuring two sets of records are in agreement and accurate.

• Reconciliation involves comparing financial transactions or statements to ensure they match

• It helps identify discrepancies or errors that need to be resolved

• Examples include reconciling bank statements with accounting records or inventory counts with sales records

SUM IF is used to calculate the sum of a range based on a single condition, while SUM IFS is used to calculate the sum of a range based on multiple conditions.

• SUM IF is a function in Excel that adds up values in a range that meet a specified condition.

• SUM IFS is a function in Excel that adds up values in a range that meet multiple specified conditions.

• SUM IF can only evaluate one condition at a time.

• SUM IFS can evaluate multiple conditions simultaneously.

• SUM IF syntax: SUMIF(...read more

Future and forward contracts are agreements between two parties to buy or sell an asset at a specified price on a future date.

• Future contracts are standardized and traded on exchanges, while forward contracts are customized and traded over-the-counter.

• Both contracts involve the obligation to buy or sell the underlying asset at a predetermined price in the future.

• These contracts are commonly used for hedging against price fluctuations in commodities, currencies, and financial ...read more

Equalisation is the process of making things equal or balanced.

• Equalisation is the act of ensuring fairness or balance in a particular situation.

• It can involve adjusting resources, opportunities, or treatment to achieve equality.

• For example, in education, equalisation may involve providing additional support to students from disadvantaged backgrounds.

• In finance, equalisation may refer to the process of distributing profits or losses among partners or shareholders.

• Equalisation...read more

Notice period is the amount of time an employee must give before leaving a job.

• Notice period is typically stated in the employment contract.

• It is a period of time during which the employee continues to work after resigning.

• Employers may require a notice period to allow for a smooth transition and find a replacement.

• Notice periods can vary from a few weeks to several months depending on the job and industry.

• Failure to adhere to the notice period may result in penalties or a ne...read more

Bug leakage is when bugs are found after the software is released to production. Bug release is when bugs are identified and fixed before the software is released.

• Bug leakage occurs when bugs are not identified during testing and are found by users after the software is released.

• Bug release is the process of identifying and fixing bugs before the software is released to production.

• Bug leakage can result in negative user experience and impact the reputation of the software.

• Bug...read more

The cash flow statement shows the inflows and outflows of cash in a company.

• It provides information on the operating, investing, and financing activities of the company.

• Operating activities include cash received from sales, payments to suppliers, and salaries paid to employees.

• Investing activities include cash spent on purchasing assets or investments and cash received from selling them.

• Financing activities include cash received from issuing stocks or bonds and cash paid for ...read more

Accrual basis records revenue when earned and expenses when incurred, while cash basis records revenue when received and expenses when paid.

• Accrual basis matches revenue and expenses to the time period they occur, regardless of when cash is exchanged.

• Cash basis only records transactions when cash is exchanged.

• Accrual basis provides a more accurate picture of a company's financial health.

• Cash basis is simpler and easier to understand.

• Example: Accrual basis records a sale when ...read more

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Derivatives can be used for hedging or speculation

• Examples include futures, options, swaps, and forwards

• Derivatives can be complex and carry high risk

• They are widely used in financial markets

The Companies Act contains various sections that govern the functioning of companies.

• The Companies Act typically includes sections related to incorporation, management, accounts, audit, and winding up of companies.

• For example, Section 2 of the Companies Act defines important terms used throughout the legislation.

• Section 149 deals with the appointment and qualification of directors.

• Section 185 restricts certain types of loans and investments by companies.

• Section 248 covers the...read more

PE stands for Private Equity, which involves investing in private companies. Hedge funds are investment funds that use various strategies to generate returns for their investors.

• PE involves investing in private companies with the goal of growing and eventually selling the investment for a profit

• Hedge funds use a variety of strategies such as long/short equity, event-driven, and macro to generate returns

• PE investors typically have a longer investment horizon compared to hedge ...read more

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

• Derivatives can be used for hedging, speculation, or arbitrage

• Common types of derivatives include options, futures, forwards, and swaps

• Derivatives allow investors to take on risk or hedge against risk in the financial markets

Private equity involves investing in privately held companies with the goal of generating high returns.

• Private equity firms raise capital from investors to acquire ownership stakes in private companies

• They aim to improve the performance of the acquired companies and eventually sell them for a profit

• Private equity investments are typically illiquid and have a longer investment horizon compared to public equity

• Examples of private equity firms include Blackstone Group, KKR, and ...read more

My current CTC is $60,000 per year.

• My current CTC is $60,000 per year

• CTC stands for Cost to Company

• It includes salary, bonuses, benefits, and any other perks provided by the employer

Expected CTC for a Fund Accountant role varies based on experience, location, and company size.

• Expected CTC can range from $50,000 to $100,000+ per year depending on factors like experience level, location, and company.

• Candidates with 1-3 years of experience may expect a CTC of $50,000 to $70,000, while those with 5+ years may aim for $80,000+.

• CTC may also include bonuses, benefits, and other perks in addition to base salary.

• Research industry standards and company profiles to...read more

Management fee is a fee charged by a financial institution for managing an investment portfolio.

• Management fee is typically a percentage of assets under management.

• It is charged by investment managers for their services in managing the portfolio.

• Management fees can vary depending on the type of investment and the financial institution.

• For example, a mutual fund may charge a management fee of 1-2% of assets under management.

Accrual is the process of recognizing revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual accounting matches revenues to the time period in which they are earned and expenses to the time period in which they are incurred.

• It helps in providing a more accurate picture of a company's financial position and performance.

• Examples include recognizing revenue when a service is provided, even if payment has not been received yet, or recording exp...read more

Waterfall is a project management methodology where tasks are completed sequentially in a linear fashion.

• Tasks are completed one after the other, with each phase dependent on the completion of the previous phase

• It is a traditional approach to project management

• Changes are difficult to implement once the project has started

• Common phases include requirements, design, implementation, testing, and maintenance

• Examples of industries using waterfall methodology include construction ...read more

KYC stands for Know Your Customer, a process used by financial institutions to verify the identity of their clients.

• KYC is a regulatory requirement to prevent money laundering and fraud.

• It involves collecting personal information and verifying it through documents like ID cards, passports, and utility bills.

• Financial institutions use KYC to assess the risk of doing business with a particular customer.

• KYC also helps in building trust and maintaining a good relationship with cl...read more

Effort estimation best practices involve breaking down tasks, considering past data, involving team members, and using multiple estimation techniques.

• Break down tasks into smaller components for more accurate estimation

• Consider past data and historical trends to inform estimates

• Involve team members in the estimation process for diverse perspectives

• Use multiple estimation techniques such as expert judgment, analogous estimation, and parametric estimation

• Regularly review and up...read more

A lathe machine is a tool used for shaping and cutting materials such as wood, metal, or plastic.

• Used for shaping and cutting materials

• Commonly used in woodworking and metalworking

• Can create symmetrical objects like bowls, spindles, and candlesticks

Cash flow statement shows the inflow and outflow of cash in a business over a specific period of time.

• Cash flow statement categorizes cash activities into operating, investing, and financing activities.

• Operating activities include cash received from sales, payments to suppliers, and employee salaries.

• Investing activities include cash spent on purchasing assets like equipment or investments.

• Financing activities include cash from issuing stock or borrowing money.

• The statement h...read more

One attribute of KYC is verifying the identity of customers to prevent fraud and money laundering.

• Verifying customer identity through documents like ID cards, passports, and utility bills

• Conducting risk assessments to determine the level of due diligence required

• Monitoring customer transactions for suspicious activity

• Keeping accurate records of customer information and interactions

CACS impact on NAV refers to how changes in the Cost Accounting and Control System affect the Net Asset Value of a fund.

• CACS can impact NAV by affecting the valuation of assets held in the fund.

• Changes in CACS can lead to adjustments in the calculation of NAV.

• Accuracy and consistency in CACS data are crucial for maintaining the integrity of NAV calculations.

Private equity is a form of investment where funds are raised from investors to acquire ownership stakes in companies.

• Private equity firms raise capital from institutional investors and high-net-worth individuals.

• The funds raised are used to acquire ownership stakes in private companies.

• Private equity firms aim to improve the performance of the acquired companies and eventually sell them for a profit.

• Investments in private equity are illiquid and typically have a long-term in...read more

A derivative is a financial instrument whose value is derived from an underlying asset or group of assets.

• Derivatives can be used for hedging, speculation, or arbitrage.

• Common types of derivatives include options, futures, forwards, and swaps.

• For example, a stock option derives its value from the underlying stock, allowing the holder to buy or sell the stock at a predetermined price.

• Derivatives are traded on exchanges or over-the-counter markets.

Factors impacting NAV include market movements, fund expenses, income distributions, and capital gains.

• Market movements: Changes in the value of securities held by the fund can directly impact NAV.

• Fund expenses: Fees and expenses incurred by the fund reduce NAV.

• Income distributions: Dividends and interest earned by the fund increase NAV.

• Capital gains: Profits from selling securities at a higher price than purchased increase NAV.