Citco Accountant Interview Questions and Answers

Q1. Difference Between forward and future contracts
Ans. 
Forward contracts are private agreements, while futures are standardized and traded on exchanges.
• Forward contracts are customized agreements between two parties, while futures are standardized contracts traded on exchanges.

• Futures contracts have daily settlement and margin requirements, whereas forward contracts settle at the end of the contract period.

• Example: A farmer may enter a forward contract to sell wheat at a s...read more
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Q2. Explain what are swaps
Ans. 
Swaps are financial derivatives where two parties exchange cash flows or liabilities to manage risk or speculate.
• Types of swaps include interest rate swaps, currency swaps, and commodity swaps.

• In an interest rate swap, one party pays a fixed interest rate while receiving a variable rate, and vice versa.

• Currency swaps involve exchanging principal and interest payments in different currencies, useful for hedging foreign ...read more
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Q1. What is accounting
Ans. 
Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business.
• Accounting involves recording financial transactions such as sales, purchases, and expenses.

• It includes summarizing the financial data into financial statements like balance sheets and income statements.

• Accounting also involves analyzing the financial information to provide insights for decision-making.

• Rep...read more
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Q2. What is journal
Ans. 
A journal is a detailed record of financial transactions in chronological order.
• A journal is used to record all financial transactions of a business.

• It includes the date, description, and amount of each transaction.

• Journals are typically organized by accounts, such as cash, accounts receivable, and accounts payable.

• The information recorded in a journal is later transferred to the general ledger for financial reporting.

• ...read more
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Q1. General HE questions such as previous work experience and expected salary
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Some technical questions regarding the role such as journal entries and definition of terms