20+ Studio Modulus Interview Questions and Answers

Reverse Repo Rate and Repo Rate are monetary policy tools used by Reserve Bank of India to control inflation and liquidity in the economy.

• Repo Rate is the rate at which RBI lends money to commercial banks in case of shortage of funds.

• Reverse Repo Rate is the rate at which RBI borrows money from commercial banks.

• Both rates are used to control inflation and liquidity in the economy.

• If RBI wants to increase liquidity, it reduces Repo Rate and if it wants to decrease liquidity, i...read more

Financial system is a network of institutions, markets, and intermediaries that facilitate the flow of funds between savers and borrowers.

• Regulatory bodies include SEC, FDIC, CFTC, OCC, and Federal Reserve

• SEC regulates securities markets and protects investors

• FDIC insures deposits in banks and savings associations

• CFTC regulates futures and options markets

• OCC supervises and regulates national banks

• Federal Reserve regulates monetary policy and oversees the banking system

Pivot Table is a data summarization tool in MS Excel.

• It allows users to quickly summarize and analyze large amounts of data.

• Users can easily group and filter data based on different criteria.

• Pivot Tables can be used to create charts and graphs for visual representation of data.

• Example: A sales report can be summarized by product, region, and time period using Pivot Table.

• Example: A survey data can be analyzed by age group, gender, and location using Pivot Table.

H-Lookup and V-Lookup are functions in MS Excel used to search for specific data in a table.

• H-Lookup searches for data in a horizontal row and returns a corresponding value from a specified column.

• V-Lookup searches for data in a vertical column and returns a corresponding value from a specified row.

• Both functions require a reference table and a lookup value.

• They are commonly used in data analysis and management.

• Example: H-Lookup can be used to find the price of a specific ite...read more

Insurance is a contract between an individual and an insurance company to protect against financial loss.

• Insurance provides financial protection against unexpected events such as accidents, illnesses, and natural disasters.

• It helps individuals and businesses manage risk by transferring the risk to the insurance company.

• Insurance also provides peace of mind and can help individuals and businesses recover from financial losses.

• Examples of insurance include health insurance, car...read more

Determining the value of insurance for an individual

• Consider the individual's financial obligations and responsibilities

• Evaluate the individual's income and assets

• Assess the individual's risk tolerance and desired level of coverage

• Take into account the individual's age, health condition, and dependents

• Consider the potential costs of medical treatments, property damage, or liability claims

• Consult with insurance professionals or use online calculators for guidance

I would suggest a life insurance policy with a critical illness rider.

• A life insurance policy will provide financial security to the dependents in case of the policyholder's untimely demise.

• A critical illness rider will provide coverage for major illnesses like cancer, heart attack, etc.

• The policy should have a sufficient sum assured to cover the family's expenses and future needs.

• The premium should be affordable and the policy should have flexible payment options.

• The policyh...read more

Depreciation is the allocation of the cost of an asset over its useful life. GST is a consumption tax that is reflected in the final accounts.

• Depreciation is a non-cash expense that reduces the value of fixed assets over time.

• Depreciation is shown in the income statement as an expense and in the balance sheet as accumulated depreciation.

• GST (Goods and Services Tax) is a consumption tax levied on the supply of goods and services.

• GST is reflected in the final accounts as a liab...read more

Accounts receivable is the money owed to a company by its customers for goods or services sold on credit.

• Accounts receivable is an asset on the balance sheet.

• Cash basis accounting recognizes revenue when cash is received, while accrual basis accounting recognizes revenue when it is earned.

• Companies typically use accrual basis accounting for financial reporting purposes.

• Accounts receivable can be managed through aging reports and collection efforts.

• Example: A company sells $10...read more

Macro is a set of instructions that automate repetitive tasks in MS Word.

• Macros can be recorded or written in Visual Basic for Applications (VBA)

• They can be assigned to a button or keyboard shortcut for easy access

• Examples of tasks that can be automated with macros include formatting, inserting text, and running spell check

• Macros can save time and increase productivity for users who frequently perform the same tasks in Word

Debentures are long-term debt instruments issued by companies to raise funds from the public. Risk analysis involves evaluating potential risks associated with an investment. When advising a person on financial matters, factors like age, assets, risk tolerance, and financial goals must be considered.

• Debentures are a form of corporate bonds that pay fixed interest rates to investors.

• Risk analysis involves assessing the likelihood of potential risks and their impact on investme...read more

Depreciation is the allocation of the cost of an asset over its useful life in the books of accounts.

• Depreciation is a non-cash expense that reflects the decrease in value of an asset over time.

• It is treated as an operating expense on the income statement, reducing the company's net income.

• Depreciation is recorded on the balance sheet to reduce the carrying amount of the asset.

• There are different methods of calculating depreciation such as straight-line, double declining bala...read more

Endowment policy provides both insurance and savings, while term insurance only provides insurance coverage.

• Endowment policy pays out a lump sum at the end of the policy term, while term insurance pays out only in case of death during the policy term.

• Endowment policy premiums are higher than term insurance premiums due to the savings component.

• Endowment policy is suitable for those who want both insurance and savings, while term insurance is suitable for those who only want i...read more

Journal entry for investment in businesses with $20,000 cash and $80,000 bank loan.

• Debit the investment account for $100,000 ($20,000 cash + $80,000 bank loan)

• Credit the cash account for $20,000

• Credit the bank loan account for $80,000

Accrual income and accrual expense are recognized when they are incurred, regardless of when cash is exchanged.

• Accrual income is income that has been earned but not yet received, while accrual expense is an expense that has been incurred but not yet paid.

• Accrual income and expense are recorded in the financial statements in the period in which they are earned or incurred, regardless of when the cash is actually received or paid.

• Accrual accounting matches revenues with expense...read more

Accounts receivables are amounts owed to a company by customers for goods or services provided, while accounts payable are amounts owed by a company to suppliers for goods or services received.

• Accounts receivables represent money owed to a company by customers, typically shown as an asset on the balance sheet.

• Accounts payable represent money owed by a company to suppliers or vendors, typically shown as a liability on the balance sheet.

• Accounts receivables are usually collecte...read more

Rent agreements are usually short-term, while lease agreements are long-term contracts.

• Rent agreements are typically month-to-month or for a fixed term, while lease agreements are usually for a longer period, such as one year or more.

• Rent agreements are more flexible and can be easily terminated with notice, while lease agreements are more binding and may have penalties for early termination.

• Rent agreements are common for residential properties, while lease agreements are com...read more

Needs analysis is the process of determining the needs and requirements of a client or project before making recommendations or decisions.

• Needs analysis involves gathering information about the client's goals, objectives, and constraints.

• It helps in identifying the gap between the current state and the desired state.

• Mutual funds pool money from multiple investors to invest in a diversified portfolio of securities.

• ETFs are similar to mutual funds but trade on stock exchanges l...read more

FV stands for Future Value and PV stands for Present Value.

• FV is the value of an asset or investment at a specified date in the future, based on the expected growth rate.

• PV is the current value of a future sum of money or stream of cash flows, discounted at a specific rate.

• FV and PV are commonly used in finance and accounting to calculate the value of investments, loans, and annuities.

• For example, if you invest $100 today at a 5% annual interest rate, the FV after one year wo...read more

Accounting methods refer to the rules and procedures used by companies to prepare financial statements.

• Accounting methods determine how revenue and expenses are recognized in financial statements.

• There are two main accounting methods: cash basis and accrual basis.

• Cash basis accounting records revenue and expenses when cash is actually received or paid.

• Accrual basis accounting records revenue when it is earned and expenses when they are incurred, regardless of when cash is exc...read more

International accounting refers to the accounting standards and practices used in multiple countries to facilitate global business transactions.

• Involves understanding and applying different accounting standards and regulations across countries

• Requires knowledge of currency exchange rates and international tax laws

• Helps companies compare financial performance across borders and comply with international reporting requirements

• Examples include IFRS (International Financial Repor...read more

Capital gain is the profit that results from a sale of a capital asset, such as stocks, bonds, or real estate.

• Capital gain is the difference between the purchase price and the selling price of a capital asset.

• It is considered a taxable event by the IRS in the United States.

• Short-term capital gains are taxed at a higher rate than long-term capital gains.

• Examples of capital assets include stocks, bonds, real estate, and precious metals.