20+ Broadridge Financial Solutions Process Analyst Interview Questions and Answers

The different types of accounting include financial accounting, management accounting, tax accounting, and forensic accounting.

• Financial accounting focuses on recording and reporting financial transactions of a company.

• Management accounting involves providing financial information to help with decision-making and planning within an organization.

• Tax accounting deals with the preparation and filing of tax returns for individuals and businesses.

• Forensic accounting involves inves...read more

Cash flows and fund flows statements are both financial statements that provide information about the movement of money in a company, but they differ in their focus and purpose.

• Cash flows statement focuses on the cash inflows and outflows of a company during a specific period, showing the sources and uses of cash.

• Fund flows statement focuses on the movement of funds within a company, including cash, investments, and other assets and liabilities.

• Cash flows statement provides i...read more

Investment banking deals with high-value transactions for corporations and governments, while retail banking serves individual customers with basic financial services.

• Investment banking involves underwriting securities, mergers and acquisitions, and other complex financial transactions

• Retail banking offers services such as savings accounts, loans, and credit cards to individual customers

• Investment banking serves corporations and governments, while retail banking serves indivi...read more

Financial markets are platforms where buyers and sellers trade financial assets such as stocks, bonds, currencies, and commodities.

• Financial markets facilitate the flow of capital between investors and borrowers

• They provide a mechanism for price discovery and risk management

• Examples include stock exchanges, bond markets, foreign exchange markets, and commodity markets

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

• Accounts receivable is an asset on the balance sheet of a company.

• It represents the amount of money that customers owe the company for goods or services that have been delivered but not yet paid for.

• Companies often have specific terms for when accounts receivable must be paid, such as net 30 or net 60.

• Accounts receivable can be converted into cash through the pr...read more

A reconciliation statement is a financial statement that compares two sets of records to ensure they are in agreement.

• Reconciliation statement is used to identify discrepancies between two sets of records.

• It helps in ensuring accuracy and integrity of financial data.

• It is commonly used in accounting and finance to reconcile bank statements, accounts receivable, and accounts payable.

• Reconciliation statements are prepared by comparing the balances of different accounts or recor...read more

Debenture is a type of debt instrument issued by a company, convertible debentures can be converted into equity shares, while non-convertible debentures cannot be converted.

• Debenture is a type of long-term debt instrument issued by a company to raise funds.

• Convertible debentures can be converted into equity shares of the issuing company at a later date.

• Non-convertible debentures cannot be converted into equity shares and offer fixed interest rates to investors.

• Debentures are ...read more

Preference shares are a type of shares that have fixed dividends and priority over equity shares in terms of payment. Equity shares represent ownership in a company.

• Preference shares have fixed dividends that must be paid before any dividends can be paid to equity shareholders.

• Preference shareholders have priority over equity shareholders in terms of payment during liquidation of the company.

• Equity shares represent ownership in a company and do not have fixed dividends.

• Equity...read more

Trade Life Cycle refers to the stages involved in a trade from initiation to settlement.

• Trade initiation

• Trade execution

• Trade confirmation

• Clearing and settlement

• Trade reconciliation

Preference shares and equity shares are types of shares issued by a company to raise capital.

• Preference shares have fixed dividends and priority over equity shares in terms of payment.

• Equity shares represent ownership in the company and have voting rights.

• Preference shares are less risky compared to equity shares.

• Equity shares have the potential for higher returns but also higher risk.

• Example: Company A issues preference shares with a fixed dividend of 5% and equity shares wi...read more

Trading Account vs Demat Account

• A trading account is used to buy and sell securities in the stock market.

• A demat account is used to hold securities in electronic form.

• Trading account is used for active trading, while demat account is used for safekeeping of securities.

• Trading account requires a broker, while demat account requires a depository participant.

• Trading account allows buying and selling of shares, futures, options, etc., while demat account holds these securities in...read more

Derivatives are financial instruments whose value is derived from an underlying asset or benchmark.

• Derivatives can be classified into four main types: futures contracts, forward contracts, options contracts, and swaps.

• Futures contracts are agreements to buy or sell an asset at a predetermined price on a future date.

• Forward contracts are similar to futures contracts but are customized and traded over-the-counter.

• Options contracts give the holder the right, but not the obligati...read more

Financial markets are platforms where buyers and sellers trade financial assets.

• Primary market - new securities are issued

• Secondary market - existing securities are traded

• Money market - short-term debt securities

• Capital market - long-term debt and equity securities

• Derivatives market - financial contracts based on underlying assets

• Foreign exchange market - trading of currencies

• Commodity market - trading of physical goods

The Indian economy is currently facing challenges due to the COVID-19 pandemic and the resulting lockdowns.

• The GDP contracted by 7.7% in the financial year 2020-21.

• Unemployment rates have increased due to job losses in various sectors.

• The government has announced various stimulus packages to revive the economy.

• The agriculture sector has shown resilience and growth during the pandemic.

• The manufacturing and service sectors have been hit hard.

• The vaccination drive is expected to...read more

Share market is a platform where buying and selling of company stocks and securities takes place.

• Share market allows companies to raise capital by selling shares to investors

• Investors can buy and sell shares to make profits

• Prices of shares fluctuate based on supply and demand

• Examples: New York Stock Exchange (NYSE), NASDAQ, Bombay Stock Exchange (BSE)

Cash flow and fund flow are both financial statements that provide information about the movement of money in a business.

• Cash flow refers to the inflow and outflow of cash in a business over a specific period of time.

• Fund flow, on the other hand, focuses on the movement of funds within a business, including both cash and non-cash items.

• Cash flow statement shows the sources and uses of cash, while fund flow statement shows the changes in working capital.

• Cash flow statement hel...read more

Debt and equity are two main sources of financing for companies. Debt involves borrowing money that must be repaid with interest, while equity involves selling ownership stakes in the company.

• Debt is a form of financing where a company borrows money from lenders and agrees to repay the principal amount plus interest over a specified period of time.

• Equity is a form of financing where a company sells ownership stakes in the business to investors in exchange for capital. Investo...read more

There are several types of mutual funds, including equity funds, bond funds, money market funds, and balanced funds.

• Equity funds invest primarily in stocks

• Bond funds invest in fixed-income securities

• Money market funds invest in short-term, low-risk securities

• Balanced funds invest in a mix of stocks and bonds

Capital markets are financial markets where individuals and institutions trade financial securities.

• Capital markets facilitate the buying and selling of stocks, bonds, and other financial instruments.

• They provide a platform for companies and governments to raise capital by issuing securities.

• Investors can participate in capital markets to invest their money and earn returns.

• Capital markets include stock exchanges, bond markets, and derivatives markets.

• Examples of capital mark...read more

A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, managed by a professional fund manager.

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

• Investors buy shares of the mutual fund, which represent their ownership in the fund's holdings

• Professionally managed by fund managers who make investment decisions on behalf of the investors

• Offer diversification, liquidity, and professional mana...read more