10+ Eviden Associate Interview Questions and Answers

The various stages in the trade cycle life are expansion, peak, contraction, and trough.

• Expansion: Period of economic growth, increased production, and rising employment.

• Peak: The highest point of economic activity before a downturn.

• Contraction: Economic decline, decreased production, and rising unemployment.

• Trough: The lowest point of economic activity before a recovery.

• Example: During the expansion phase, businesses experience increased demand and profitability.

• Example: The...read more

Investment banking involves providing financial services to corporations, governments, and other institutions.

• Investment banking involves underwriting securities, providing financial advisory services, and facilitating mergers and acquisitions.

• Capital markets are where securities such as stocks and bonds are bought and sold.

• Derivatives are financial instruments that derive their value from an underlying asset or benchmark.

• The golden rule of accounting is that debits must equa...read more

The types of capital markets include primary markets and secondary markets.

• Primary markets are where new securities are issued and sold for the first time, such as initial public offerings (IPOs).

• Secondary markets are where existing securities are traded among investors, such as stock exchanges.

• Other types of capital markets include money markets, bond markets, and derivatives markets.

• Money markets deal with short-term debt securities and instruments.

• Bond markets involve the ...read more

Mutual fund is a type of investment vehicle that pools money from multiple investors to invest in various securities.

• Mutual funds are managed by professional fund managers

• Investors buy shares in the mutual fund and the value of the shares is based on the performance of the underlying securities

• Types of mutual funds include equity funds, bond funds, and money market funds

• Derivatives are financial instruments that derive their value from an underlying asset or security

• Types of ...read more

Answers to questions related to finance and accounting.

• Derivative is a financial instrument whose value is derived from an underlying asset.

• Money market is a market for short-term borrowing and lending of funds.

• Weaknesses can vary from person to person, but it's important to be self-aware and work on improving them.

• Bad debt entry is on the debit side of the balance sheet.

• Introduction should include name, education, work experience, and relevant skills.

Capital market is a market for buying and selling long-term securities. Derivative market is a market for financial instruments derived from underlying assets. Golden rule of accounting is to debit the receiver and credit the giver.

• Capital market deals with long-term securities like stocks, bonds, and debentures.

• Derivative market deals with financial instruments like futures, options, and swaps.

• Golden rule of accounting is a fundamental principle that states that for every de...read more

Equity funding refers to the process of raising capital by selling shares of ownership in a company.

• Equity funding is a common method for startups and growing companies to raise funds.

• Investors purchase shares of the company in exchange for capital.

• Equity funding allows companies to access external capital without incurring debt.

• It provides investors with an ownership stake in the company and potential returns on their investment.

• Examples of equity funding include venture cap...read more

A derivative is a financial contract whose value is based on the performance of an underlying asset or security.

• Derivatives can be used for hedging or speculation.

• Examples of derivatives include futures, options, and swaps.

• Derivatives can be traded on exchanges or over-the-counter.

• Money market refers to a market where short-term financial instruments are traded.

• Examples of money market instruments include treasury bills, commercial paper, and certificates of deposit.

• SEBI (Sec...read more

Interest payment is the cost of borrowing money from a bank, while principal is the amount borrowed.

• Interest payment is the amount of money paid by a borrower to a lender for the use of money borrowed.

• Principal is the original amount of money borrowed from a lender.

• For example, if a person borrows $10,000 from a bank at an interest rate of 5%, the interest payment would be $500 per year and the principal would be $10,000.

• Interest payments can be fixed or variable depending on...read more

A share is riskier than a mutual fund.

• Shares are more volatile and subject to market fluctuations

• Mutual funds are diversified and managed by professionals

• Shares require more research and monitoring

• Examples: Apple stock vs. S&P 500 index fund

Cost ratios can be classified into three types: operating, financial, and combined.

• Operating cost ratio measures the efficiency of a company's operations.

• Financial cost ratio measures the company's ability to meet its financial obligations.

• Combined cost ratio is a combination of operating and financial cost ratios.

• Examples of cost ratios include gross profit margin, return on assets, debt-to-equity ratio, and interest coverage ratio.

Cost accounting is the process of recording, classifying, analyzing, summarizing, and allocating costs associated with a business operation.

• It helps in determining the cost of production

• It helps in identifying areas where cost can be reduced

• It helps in setting prices for products and services

• It helps in budgeting and forecasting

• Examples include job costing, process costing, and activity-based costing

Capital market is a financial market where individuals and institutions trade financial securities.

• Capital market facilitates the buying and selling of long-term debt and equity instruments.

• It includes stock markets and bond markets.

• Investors can buy/sell stocks, bonds, and other financial instruments in the capital market.

• Companies raise capital by issuing stocks or bonds in the capital market.

• Examples of capital markets include NYSE, NASDAQ, and London Stock Exchange.

Money market refers to a segment of the financial market where short-term borrowing and lending takes place.

• Money market deals with short-term debt securities such as treasury bills, commercial papers, and certificates of deposit.

• It is a low-risk investment option with low returns.

• Money market funds are mutual funds that invest in money market instruments.

• Money market plays a crucial role in the economy by providing liquidity to financial institutions.

Investment banking is a financial service that helps companies and governments raise capital by underwriting and selling securities.

• Investment banks act as intermediaries between issuers of securities and investors.

• They provide advice on mergers and acquisitions, and help companies go public through initial public offerings (IPOs).

• Investment banks also engage in trading and market-making activities, and provide research and analysis on various industries and companies.

• Example...read more

Custodian banking involves holding and safeguarding financial assets on behalf of clients.

• Custodian banks provide services such as safekeeping of assets, settlement of trades, and corporate actions processing.

• They also offer reporting and record-keeping services to clients.

• Examples of custodian banks include State Street, BNY Mellon, and J.P. Morgan.

• Custodian banking is important for institutional investors such as pension funds, mutual funds, and hedge funds.

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.

• For example, a stock option derives its value from the underlying stock, while a currency forward derives its value from the exchange rate.

Golden rules of accounts are basic principles that guide the recording of financial transactions.

• Debit what comes in, credit what goes out

• Debit the receiver, credit the giver

• Debit expenses and losses, credit income and gains