100+ FactSet Interview Questions and Answers

Income statement, net profit, stock split, merger, takeover, depreciation, amortization, net worth, retaining earnings, book value per share, types of equity shares.

• Income statement shows a company's revenue and expenses over a period of time.

• Net profit is calculated by subtracting total expenses from total revenue.

• Stock split is when a company increases the number of shares outstanding by issuing more shares to current shareholders.

• Merger is when two companies combine to for...read more

Fixed income securities provide a fixed return while variable income securities provide a return that fluctuates based on market conditions.

• Fixed income securities provide a fixed rate of return, such as bonds or CDs

• Variable income securities provide a return that fluctuates based on market conditions, such as stocks or mutual funds

• Fixed income securities are generally considered less risky than variable income securities

• Investors may choose to diversify their portfolio with ...read more

Assets are resources owned by an individual or organization, while liabilities are debts or obligations owed to others.

• Assets can include cash, property, investments, and inventory.

• Liabilities can include loans, mortgages, and unpaid bills.

• Assets are typically viewed as positive, while liabilities are viewed as negative.

• The difference between assets and liabilities is known as net worth or equity.

Depreciation, tangible and intangible assets, balance sheet, and capital budgeting are called financial terms.

• Depreciation is the decrease in value of an asset over time.

• Tangible assets are physical assets like buildings and machinery, while intangible assets are non-physical assets like patents and trademarks.

• Balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

• Capital budgeting is the process of planning a...read more

Factset is a financial data and software company that provides research, analytics, and data solutions to investment professionals.

• Factset offers a wide range of financial data and analytics tools

• It provides real-time market data, news, and research reports

• Factset's software platforms help investment professionals in portfolio management, risk analysis, and quantitative research

• The company serves clients in the financial industry, including asset managers, investment banks, a...read more

Types of accounts and golden rules of accounts

• Types of accounts include assets, liabilities, equity, revenue, and expenses

• Golden rules of accounts are based on the accounting equation: Assets = Liabilities + Equity

• The golden rules are: Debit what comes in and credit what goes out, Debit the receiver and credit the giver, Debit all expenses and losses and credit all incomes and gains

Accumulated depreciation is the total amount of depreciation expense that has been recorded for an asset over its useful life.

• It is a contra-asset account that reduces the value of an asset on the balance sheet.

• It is calculated by subtracting the asset's salvage value from its original cost and dividing the result by the asset's useful life.

• It represents the total amount of wear and tear or obsolescence that an asset has undergone over time.

• It is important for calculating the...read more

Research Analysts require strong analytical, critical thinking, and communication skills.

• Strong analytical skills to collect and analyze data

• Critical thinking skills to interpret data and draw conclusions

• Excellent communication skills to present findings and recommendations

• Proficiency in statistical analysis software and tools

• Ability to work independently and as part of a team

• Attention to detail and accuracy

• Knowledge of research methodologies and techniques

• Flexibility and ada...read more

Semi-variable costs have both fixed and variable components, while variable costs change proportionally with output.

• Semi-variable costs have a fixed portion that remains constant regardless of output, and a variable portion that changes with output.

• Examples of semi-variable costs include utilities, phone bills, and maintenance costs.

• Variable costs change proportionally with output, such as direct materials and labor costs.

• Understanding the difference between these costs is im...read more

Provision is a charge against profits, while reserves are profits set aside for future use.

• Provision is an estimated expense, while reserves are a part of profits.

• Provision is a charge against profits, while reserves are a part of equity.

• Provision is a liability, while reserves are an asset.

• Examples of provisions include bad debts, warranties, and taxes, while examples of reserves include general reserves, contingency reserves, and capital reserves.

Depreciation reduces net income and increases cash flow.

• Depreciation is a non-cash expense that reduces net income.

• Since it is a non-cash expense, it is added back to net income in the cash flow statement.

• This results in an increase in cash flow from operating activities.

• For example, if a company has a net income of $100,000 and depreciation expense of $20,000, the cash flow from operating activities would be $120,000.

• Depreciation also affects cash flow from investing activit...read more

Marginal costs refer to the cost of producing one additional unit of a product, while additional costs refer to any extra costs incurred beyond the initial cost.

• Marginal costs are the cost of producing one more unit of a product, while additional costs are any extra costs incurred beyond the initial cost.

• Marginal costs are variable costs that increase or decrease with the production of one more unit, while additional costs can be fixed or variable costs.

• For example, if a comp...read more

Accrued expenses are liabilities that have been incurred but not yet paid for.

• Accrued expenses are recorded on the balance sheet as a current liability.

• They represent expenses that have been recognized but not yet paid for.

• Examples of accrued expenses include salaries payable, interest payable, and utilities payable.

• Accrued expenses are typically recorded through adjusting entries at the end of an accounting period.

Provision is a liability that is uncertain in timing or amount, while reserve is a portion of profits set aside for specific purposes.

• Provision is a liability that is recognized in the financial statements when there is uncertainty about the timing or amount of an obligation.

• Reserve is a portion of profits that is set aside by a company for specific purposes, such as future investments, contingencies, or dividends.

• Provisions are made for known liabilities, such as bad debts, ...read more

An equity stock holder is an individual or entity that owns shares of a company's stock.

• Equity stock holders have ownership in a company and are entitled to a portion of its profits.

• They can vote on important company decisions and attend shareholder meetings.

• Examples of equity stock holders include individual investors, mutual funds, and pension funds.

Activities in Cash Flow Statement include operating, investing, and financing activities.

• Operating activities involve cash flows from day-to-day business operations, such as sales and expenses.

• Investing activities include cash flows from buying or selling long-term assets, like property or equipment.

• Financing activities involve cash flows related to raising or repaying capital, such as issuing stocks or paying dividends.

• Examples of operating activities: cash received from cus...read more

The golden rules of accounting are basic principles that guide the recording of financial transactions.

• The first golden rule is the Personal Account rule, which states that all personal accounts are debited for the receiver and credited for the giver.

• The second golden rule is the Real Account rule, which states that all real accounts are debited for what comes in and credited for what goes out.

• The third golden rule is the Nominal Account rule, which states that all nominal ac...read more

Balance sheet, income statement, and cash flow statement are three key financial statements used to assess the financial health of a company.

• Balance sheet provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

• Income statement shows a company's revenues, expenses, and profits over a specific period of time.

• Cash flow statement tracks the flow of cash in and out of a company, detailing operating, investing, and...read more

ESG stands for Environmental, Social, and Governance. It is a framework used to evaluate a company's sustainability and ethical practices.

• ESG factors are used by investors to assess a company's long-term financial performance and risk.

• Environmental factors include a company's impact on climate change, natural resource depletion, and pollution.

• Social factors include a company's impact on human rights, labor practices, and community relations.

• Governance factors include a compan...read more

Direct expenses are related to production while indirect expenses are not directly related to production.

• Direct expenses are incurred in the production process and can be easily traced to a product or service.

• Indirect expenses are not directly related to production and cannot be easily traced to a product or service.

• Direct expenses are variable costs while indirect expenses are fixed costs.

• Examples of direct expenses include raw materials, labor costs, and manufacturing overh...read more

Balance Sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time.

• It presents the assets, liabilities, and shareholders' equity of a company.

• Assets are resources owned by the company, such as cash, inventory, and property.

• Liabilities are the company's obligations, such as loans and accounts payable.

• Shareholders' equity represents the company's net worth, calculated as assets minus liabilities.

• The balance sheet follow...read more

Depreciation is the deduction of recorded cost of a fixed asset in a systematic manner.

• Depreciation is a method of allocating the cost of a fixed asset over its useful life.

• It is a non-cash expense that reduces the value of an asset over time.

• Depreciation can be calculated using various methods such as straight-line, declining balance, and sum-of-the-years' digits.

• For example, if a company purchases a machine for $10,000 with a useful life of 5 years, the annual depreciation ...read more

Retained earnings are the accumulated profits of a company that are reinvested into the business instead of being distributed to shareholders.

• Retained earnings represent the portion of net income that is retained by the company after dividends are paid out to shareholders.

• They are reported on the balance sheet under the equity section.

• Retained earnings can be used for various purposes such as funding growth, paying off debt, or acquiring assets.

• They can be positive or negativ...read more

GAAP stands for Generally Accepted Accounting Principles. It is a set of accounting standards and principles used in the preparation of financial statements.

• GAAP is a set of guidelines and principles that govern the accounting and financial reporting practices of companies.

• The main goal of GAAP is to ensure consistency, comparability, and transparency in financial reporting.

• GAAP provides a framework for recording, summarizing, and presenting financial information.

• Some of the ...read more

IFRS stands for International Financial Reporting Standards.

• IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB).

• It provides a common framework for financial reporting across different countries.

• IFRS aims to enhance transparency, comparability, and reliability of financial statements.

• It is used by companies to prepare their financial statements in a consistent and standardized manner.

• IFRS covers various aspects of financial re...read more

Finance is the management of money and investments.

• Finance involves managing money, investments, and financial risks.

• It includes activities such as budgeting, investing, and financial analysis.

• Examples of finance include personal finance, corporate finance, and public finance.

Gross profit is the revenue earned after deducting the cost of goods sold.

• Gross profit = Revenue - Cost of goods sold

• It is a measure of a company's profitability

• It does not take into account other expenses such as operating expenses

• Example: A company sells a product for $100 and it costs $60 to produce. The gross profit is $40.

• Example: A company's revenue is $500,000 and its cost of goods sold is $300,000. The gross profit is $200,000.

A trading account is a type of financial account used to buy and sell securities, such as stocks, bonds, and derivatives.

• A trading account is used by investors and traders to execute trades in the financial markets.

• It allows individuals and institutions to buy and sell various types of securities.

• Trading accounts are typically offered by brokerage firms or financial institutions.

• They provide access to different markets, such as stock exchanges, commodities markets, and foreig...read more

A debenture is a type of debt instrument that is not secured by physical assets or collateral.

• Debentures are issued by companies or governments to raise capital.

• They are essentially a promise to repay the principal amount along with interest.

• Debentures can be either convertible or non-convertible.

• Convertible debentures can be converted into equity shares of the issuing company.

• Non-convertible debentures cannot be converted into equity shares.

• Debentures are typically considere...read more

ESG stands for Environmental, Social, and Governance. It is a set of criteria used to evaluate a company's sustainability and ethical impact.

• Environmental pillar focuses on a company's impact on the environment, such as carbon emissions, waste management, and resource conservation.

• Social pillar assesses how a company manages relationships with employees, customers, suppliers, and the communities in which it operates.

• Governance pillar examines the company's leadership, executi...read more

EPS stands for Earnings Per Share, which is the portion of a company's profit allocated to each outstanding share of common stock.

• EPS is a financial metric used to evaluate a company's profitability.

• It is calculated by dividing the company's net income by the number of outstanding shares.

• EPS can be used to compare the profitability of different companies or to track a company's performance over time.

• A higher EPS indicates that a company is more profitable and may be a good in...read more

The gross profit formula calculates the profit made after deducting the cost of goods sold from the total revenue.

• Gross profit = Total revenue - Cost of goods sold

• Total revenue includes all sales revenue generated by the company

• Cost of goods sold includes the direct costs associated with producing or purchasing the goods sold

• Gross profit is an indicator of a company's profitability before considering other expenses

• Example: If a company has total revenue of $100,000 and cost o...read more

Goodwill can be calculated using the acquisition method or the impairment method.

• Acquisition method involves subtracting the fair value of net assets acquired from the purchase price.

• Impairment method involves comparing the carrying value of goodwill to its implied fair value.

• Goodwill is only recognized in a business combination.

• Goodwill is tested for impairment annually or when there is a triggering event.

• Goodwill is not amortized but is subject to impairment testing.

Financial statements are documents that provide information about the financial performance and position of a company.

• The three main types of financial statements are the income statement, balance sheet, and cash flow statement.

• The income statement shows the company's revenues, expenses, and net income or loss over a specific period of time.

• The balance sheet presents the company's assets, liabilities, and shareholders' equity at a specific point in time.

• The cash flow statemen...read more

Bond interest rate is called yield.

• The bond interest rate is commonly referred to as yield.

• Yield represents the return on investment for bondholders.

• It is expressed as a percentage of the bond's face value.

• Yield can be fixed or variable depending on the type of bond.

• For example, a 5% yield means the bond pays 5% interest annually.

Derivatives are financial contracts that derive their value from 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.

• Derivatives can be used to manage risk or to take on additional risk for potential profit.

• Derivatives can be complex and require specialized knowledge to understand and trade.

Nifty50 is the benchmark index of the National Stock Exchange (NSE) of India, comprising of 50 actively traded stocks.

• Nifty50 is a stock market index that tracks the performance of 50 large-cap Indian companies listed on the NSE.

• It is calculated using the free-float market capitalization weighted methodology.

• The index is reviewed twice a year and changes are made based on market capitalization and liquidity.

• Nifty50 is widely used by investors and traders as a barometer of the...read more

IPO stands for Initial Public Offering. It is the process by which a private company becomes a publicly-traded company by offering its shares to the public.

• IPO is a way for companies to raise capital by selling shares to the public.

• It allows private companies to become publicly traded on stock exchanges.

• During an IPO, shares are offered to institutional investors and individual investors.

• The company's valuation and share price are determined through the IPO process.

• Examples o...read more

Short term liabilities are debts or obligations that are due within a year or less.

• Short term loans

• Accounts payable

• Accrued expenses

• Current portion of long-term debt

• Unearned revenue

Bonds are secured debt instruments issued by corporations or governments, while debentures are unsecured debt instruments issued by corporations.

• Bonds are backed by specific assets of the issuer, while debentures are not secured by any specific collateral.

• Bonds typically have lower interest rates compared to debentures due to the higher level of security provided.

• Examples of bonds include government bonds, municipal bonds, and corporate bonds. Examples of debentures include u...read more

Depreciation is the decrease in value of tangible assets over time, while amortization is the decrease in value of intangible assets over time.

• Depreciation applies to tangible assets like buildings, machinery, and vehicles.

• Amortization applies to intangible assets like patents, copyrights, and trademarks.

• Depreciation is calculated based on the useful life of the asset.

• Amortization is calculated based on the estimated useful life of the intangible asset.

• Depreciation is recorde...read more

Provision for bad debts is an accounting practice of setting aside a portion of revenue to cover potential losses from customers who do not pay their debts.

• Provision for bad debts is a common practice in businesses that extend credit to customers.

• It is a way to account for potential losses from customers who may not pay their debts.

• The provision is usually a percentage of revenue or accounts receivable.

• The provision is adjusted periodically based on the company's experience w...read more

The golden rules of accounting are basic principles that guide the process of recording financial transactions.

• The three golden rules of accounting are: Debit what comes in, Credit what goes out, Debit the receiver, Credit the giver, Debit all expenses and losses, Credit all incomes and gains.

• These rules help ensure that financial transactions are accurately recorded and classified in the accounting system.

• For example, when a company receives cash from a customer, the transac...read more

Different types of bonds include government bonds, corporate bonds, municipal bonds, and convertible bonds.

• Government bonds are issued by national governments to finance their activities and are considered low-risk investments.

• Corporate bonds are issued by corporations to raise capital and typically offer higher yields than government bonds.

• Municipal bonds are issued by local governments to fund public projects and are exempt from federal taxes.

• Convertible bonds can be conver...read more

Preferred stock is a type of stock that pays fixed dividends, while debenture is a type of debt instrument with no collateral.

• Preferred stock represents ownership in a company, but usually does not come with voting rights.

• Preferred stockholders receive fixed dividends before common stockholders.

• Debentures are unsecured debt instruments issued by corporations or governments.

• Debenture holders are considered creditors of the company and have a higher claim on assets in case of b...read more

COVID-19 is a highly contagious respiratory illness caused by the novel coronavirus SARS-CoV-2.

• COVID-19 emerged in Wuhan, China in December 2019.

• It spreads primarily through respiratory droplets when an infected person coughs, sneezes, or talks.

• Symptoms include fever, cough, shortness of breath, fatigue, loss of taste or smell, and body aches.

• Severe cases can lead to pneumonia, acute respiratory distress syndrome (ARDS), organ failure, and death.

• Preventive measures include we...read more

Dividend is a portion of a company's profits distributed to its shareholders.

• Dividend is a payment made by a company to its shareholders as a reward for investing in the company.

• It is usually paid in cash, but can also be in the form of additional shares or other assets.

• The amount of dividend paid depends on the company's profits and the number of shares held by the shareholder.

• Dividend can be paid regularly, such as quarterly or annually, or as a one-time special dividend.

• Di...read more

Share capital refers to the amount of money that a company raises by issuing shares to investors.

• Share capital represents the ownership of a company

• It is a long-term source of funding for a company

• Shareholders have voting rights and can receive dividends

• The amount of share capital can increase or decrease depending on the company's needs

• Examples of share capital include common stock and preferred stock

Research analysts are responsible for gathering, analyzing, and interpreting data to provide insights and recommendations for decision-making.

• Conducting research to gather data from various sources

• Analyzing data using statistical techniques and software

• Interpreting findings to provide insights and recommendations

• Preparing reports and presentations to communicate findings to stakeholders

• Staying updated on industry trends and developments

Financial statements are formal records of the financial activities and position of a business, organization, or individual.

• Financial statements include the balance sheet, income statement, cash flow statement, and statement of changes in equity.

• Balance sheet shows assets, liabilities, and equity at a specific point in time.

• Income statement shows revenues and expenses over a period of time.

• Cash flow statement shows the inflow and outflow of cash.

• Statement of changes in equity...read more

The banking sector earns income through various sources such as interest on loans, fees and commissions, and investments.

• Interest on loans is a major source of income for banks

• Fees and commissions charged for services such as account maintenance, ATM usage, and wire transfers also contribute to income

• Investments in stocks, bonds, and other financial instruments generate income for banks

• Foreign exchange transactions and trading activities also contribute to income

• Some banks al...read more

IPO stands for Initial Public Offering. It is the first time a company's stock is offered to the public.

• IPO is a way for companies to raise capital by selling shares of their stock to the public

• It is a process where a private company becomes a public company

• The company hires an investment bank to underwrite the IPO and help set the price of the shares

• Examples of successful IPOs include Facebook, Alibaba, and Uber

Depreciation methods include straight-line, declining balance, and sum-of-the-years' digits.

• Straight-line method charges an equal amount of depreciation each year.

• Declining balance method charges a higher percentage of depreciation in the early years of an asset's life.

• Sum-of-the-years' digits method charges more depreciation in the early years and less in the later years.

• Other methods include units of production and MACRS.

• Depreciation methods are used to allocate the cost of...read more

Net profit is the amount of money a company earns after deducting all expenses from its total revenue.

• Net profit is calculated by subtracting all expenses, including taxes and interest, from total revenue.

• It is a measure of a company's profitability and indicates how much money is left over after all expenses are paid.

• Net profit is important for investors as it shows how efficiently a company is using its resources to generate profits.

• For example, if a company has a total rev...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities.

• Mutual funds provide diversification, allowing investors to spread their risk across multiple securities.

• They are managed by professional fund managers who make investment decisions on behalf of the investors.

• Mutual funds offer liquidity, allowing investors to buy or sell their shares at the end of each trading day.

• They provide access to a wide range...read more

EPS stands for Earnings Per Share, a financial metric that indicates a company's profitability. PE ratio is Price-to-Earnings ratio, used to evaluate a company's stock price relative to its earnings.

• EPS is calculated by dividing a company's net income by the number of outstanding shares.

• A higher EPS indicates higher profitability for the company.

• PE ratio is calculated by dividing the current stock price by the EPS.

• A lower PE ratio may indicate that a stock is undervalued, whi...read more

I would rate my accounting knowledge as a 7 out of 10.

• I have a solid understanding of basic accounting principles and practices.

• I am able to prepare financial statements and analyze financial data.

• I have experience with accounting software such as QuickBooks and Excel.

• However, I may need to refresh my knowledge on more complex accounting topics such as tax laws and regulations.

Equity represents ownership in a company, while mutual funds pool money from multiple investors to invest in a diversified portfolio of securities.

• Equity is a type of security that represents ownership in a company, giving shareholders voting rights and a share of profits.

• Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

• Equity investments carry higher risk but also offer the...read more

A share is a unit of ownership in a company or corporation.

• A share represents a portion of a company's ownership.

• Shareholders are entitled to a portion of the company's profits and assets.

• Shares can be bought and sold on stock exchanges.

• The price of a share is determined by supply and demand.

• Companies can issue different types of shares with varying rights and privileges.

Ratio is a mathematical comparison of two or more quantities.

• It is expressed as a fraction or a decimal.

• It is used to compare the size or magnitude of two or more values.

• It is commonly used in financial analysis, such as calculating the debt-to-equity ratio.

• It can also be used in scientific research, such as calculating the ratio of males to females in a study.

Bonds are financial instruments that represent a loan made by an investor to a borrower, typically a government or corporation.

• Bonds are debt securities that pay interest over a fixed period of time.

• They are used by governments and corporations to raise capital.

• Investors who purchase bonds are essentially lending money to the issuer in exchange for regular interest payments and the return of the principal amount at maturity.

• Bonds have a specified face value, coupon rate, and ...read more

Share and stock are both forms of ownership in a company, but there are some differences.

• Shares represent ownership in a specific company, while stocks can refer to ownership in multiple companies

• Shares can be bought and sold on stock exchanges, while stocks are traded on stock markets

• Shares may have different classes with varying voting rights, while stocks typically have equal voting rights

• Shares may pay dividends, while stocks may pay dividends or reinvest profits

• Shares ma...read more

Capital markets are where financial instruments such as stocks, bonds, and commodities are traded between investors and institutions.

• Capital markets are a platform for companies to raise capital by issuing stocks and bonds.

• Investors can buy and sell financial instruments in the capital markets.

• The capital markets are divided into primary and secondary markets.

• Examples of capital markets include the New York Stock Exchange (NYSE) and NASDAQ.

• Capital markets play a crucial role ...read more

Financial ratios are tools used to analyze a company's financial performance by comparing different financial metrics.

• Financial ratios are used to evaluate a company's liquidity, profitability, solvency, and efficiency.

• Examples of financial ratios include current ratio, debt-to-equity ratio, return on equity, and gross profit margin.

• Financial ratios are calculated by dividing one financial metric by another to provide insight into a company's financial health.

• Financial ratios...read more

EPS stands for Earnings Per Share and measures a company's profitability per outstanding share. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization and measures a company's operating performance.

• EPS is calculated by dividing a company's net income by the number of outstanding shares.

• EPS is an important metric for investors to assess a company's profitability on a per-share basis.

• Higher EPS indicates better profitability.

• EBITDA is a measure of a c...read more

Working capital is the difference between a company's current assets and current liabilities.

• Working capital is essential for a company's day-to-day operations.

• It indicates the company's liquidity and ability to meet short-term obligations.

• Formula: Working Capital = Current Assets - Current Liabilities

• Examples: Cash, accounts receivable, inventory are current assets. Accounts payable, short-term loans are current liabilities.

Private equity is a type of investment where funds are raised from institutional and high-net-worth investors to acquire equity ownership in companies.

• Private equity firms typically buy out existing companies or invest in growing businesses to help them expand.

• Investments are made with the goal of improving the company's performance and ultimately selling it for a profit.

• Private equity investors often take an active role in the management of the companies they invest in.

• Examp...read more

Financial statements are documents that provide information about a company's financial performance and position.

• Financial statements include the income statement, balance sheet, and cash flow statement.

• The income statement shows a company's revenues and expenses over a period of time.

• The balance sheet provides a snapshot of a company's assets, liabilities, and equity at a specific point in time.

• The cash flow statement shows how cash is generated and used by a company.

• Financi...read more

Accounting concepts and principles are the fundamental guidelines for preparing financial statements.

• Accounting concepts are basic assumptions, rules, and guidelines that underlie the preparation of financial statements.

• Accounting principles are specific rules and standards that companies should follow when preparing their financial statements.

• Examples of accounting concepts include going concern, consistency, and materiality.

• Examples of accounting principles include the reve...read more

Balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

• It provides a snapshot of a company's financial position.

• Assets are what the company owns, liabilities are what it owes, and shareholders' equity is the difference between the two.

• The balance sheet equation is: Assets = Liabilities + Shareholders' Equity.

• It helps investors and analysts assess the financial health and stability of a company.

• Ex...read more

Merger and acquisition is the process of combining two companies into one entity through various financial transactions.

• Merger involves two companies coming together to form a new company

• Acquisition involves one company buying another company

• Mergers and acquisitions can help companies expand their market share, diversify their products, or achieve cost savings through synergies

• Examples include Disney's acquisition of 21st Century Fox and the merger of Exxon and Mobil to form ...read more

NIM is the difference between interest income and interest expense on a bank's balance sheet. NII is the income generated by a bank's interest-earning assets.

• NIM is a measure of a bank's net interest income as a percentage of its interest-earning assets.

• NII is the difference between interest income and interest expense on a bank's income statement.

• NIM is affected by changes in interest rates and the composition of a bank's balance sheet.

• NII is affected by the volume and mix o...read more

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

• The first golden rule is the principle of debit and credit.

• The second golden rule is the principle of consistency.

• The third golden rule is the principle of conservatism.

• The fourth golden rule is the principle of materiality.

• The fifth golden rule is the principle of relevance.

• The sixth golden rule is the principle of objectivity.

Depreciation is the allocation of the cost of a tangible asset over its useful life.

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

• It is used to spread out the cost of an asset over its useful life for accounting and tax purposes.

• Common methods of calculating depreciation include straight-line, double declining balance, and units of production.

• Examples of depreciable assets include buildings, machinery, vehicles, and equipment.

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.

• Derivatives allow investors to take on leverage and potentially increase returns.

Amortization is the process of spreading out the cost of an intangible asset over its useful life.

• Amortization is commonly used in accounting to allocate the cost of intangible assets such as patents, copyrights, and trademarks over their useful life.

• It is similar to depreciation, which is used for tangible assets like buildings and equipment.

• Amortization expenses are recorded on the income statement and reduce the value of the intangible asset on the balance sheet.

• The formul...read more

Find an odd occurring number among even occurring numbers.

• Use XOR operation to cancel out even occurring numbers and get the odd occurring number.

• Iterate through the array and XOR each element with the result variable.

• The final result will be the odd occurring number.

Bonds and stocks are two different types of investments with varying levels of risk and return potential.

• Bonds are considered safer investments compared to stocks as they offer fixed interest payments and return of principal at maturity.

• Stocks, on the other hand, represent ownership in a company and offer potential for higher returns but also come with higher risk.

• Investors often choose a mix of bonds and stocks in their portfolio to balance risk and return based on their fin...read more

Design a database schema for a supermarket with discounts and offers. Solve a puzzle to fill numbers in a blank grid.

• Create tables for customers, products, discounts, and offers

• Use foreign keys to link tables

• Include columns for discount type, amount, and validity period

• Use a trigger to update discounts and offers based on customer purchase history

• Puzzle solution: 9 8 7 6 5 4 3 2 1 0

Find pairs of numbers in array whose sum is least near to k

• Sort the array in ascending order

• Use two pointers approach to find the pair closest to k

• Keep track of the minimum difference between k and the sum of pairs

• Return all pairs with the minimum difference

Given a matrix of characters and a string, find the first index of string in matrix. String can be horizontally, vertically, diagonally present in any direction.

• Iterate through each character in the matrix and check if it matches the first character of the string.

• If it matches, check if the remaining characters of the string are present in the same direction.

• Repeat the above step for all possible directions.

• Return the index of the first character of the string if found, else ...read more

Find total number of k element with given avg in an array in minimum time complexity.

• Use sliding window technique to traverse the array in O(n) time complexity.

• Maintain a sum variable to keep track of the sum of elements in the window.

• If the sum of elements in the window is equal to k times the given avg, increment the count.

• Move the window by subtracting the first element and adding the next element in the array.

Answers to various questions related to finance and accounting.

• Financial statements include balance sheet, income statement, and cash flow statement.

• Shares represent ownership in a company, while debentures are a form of debt.

• Cash flow statement helps in analyzing the cash inflows and outflows of a company.

• Non-performing assets are loans or advances that are not generating income for the bank.

• Derivatives are financial instruments whose value is derived from an underlying asse...read more

Printing non-boundary elements of a binary tree

• Traverse the tree in any order (preorder, inorder, postorder)

• Check if the current node is not a boundary node (not the first or last node in its level)

• If it is not a boundary node, print its value

• Recursively traverse its left and right subtrees

Find the common element in all rows of a matrix.

• Iterate through each element of the first row and check if it exists in all other rows.

• If an element is found in all rows, return it.

• If no common element is found, return null or a message indicating the same.

Finding pairs in an array with a given sum.

• Iterate through the array and for each element, check if the difference between the given sum and the element exists in the array.

• Use a hash table to store the elements of the array and their indices for faster lookup.

• If there are multiple pairs with the same sum, return any one of them.

• If no pair is found, return null or an empty array.

To find intersecting point of two linked lists, use two pointers and traverse both lists simultaneously.

• Use two pointers, one for each linked list, and traverse both lists simultaneously

• If one pointer reaches the end of a list, redirect it to the head of the other list

• When both pointers point to the same node, that is the intersecting point

Print the spiral order of a binary tree and matrix.

• For binary tree, use level order traversal and alternate direction for each level.

• For matrix, use four pointers to traverse in spiral order.

• Example for binary tree: 1 -> 2 -> 3 -> 4 -> 5 -> 6 -> 7 -> 8 -> 9

• Example for matrix: 1 2 3 4 -> 8 7 6 5 -> 9 10 11 12 -> 16 15 14 13

Given an array and target, find the index pair of elements the sum becomes target.

• Use a hash table to store the difference between target and current element

• Check if the difference exists in the hash table

• Return the indices of the current element and the difference

Private equity funds are investment vehicles that pool capital from investors to acquire and invest in companies.

• General private equity funds are not focused on a specific industry or sector

• Fund register is a document that contains information about a private equity fund, including its investment strategy, fees, and terms

• GP (General Partner) is the manager of the private equity fund, responsible for making investment decisions and managing the fund's operations

• LP (Limited Par...read more

The 5 financial statements are income statement, balance sheet, cash flow statement, shareholders' equity statement, and currency translation and exchange.

• Income statement shows a company's revenues and expenses over a period of time.

• Balance sheet provides a snapshot of a company's financial position at a specific point in time.

• Cash flow statement shows how cash is generated and used by a company.

• Shareholders' equity statement shows the changes in equity of shareholders over ...read more

Find median of two sorted arrays in O(logM + logN) time complexity.

• Use binary search to find the partition point in both arrays.

• Calculate the left and right elements of the partition in both arrays.

• If the left elements are smaller than the right elements, we have found the median.

• If not, adjust the partition point accordingly and repeat the process.

• If the total number of elements is odd, median is the max of left elements.

• If the total number of elements is even, median is the...read more

Share capital is shown on the liability side of the Balance Sheet because it represents the funds raised from shareholders, which are owed back to them.

• Share capital represents the amount of money that shareholders have invested in the company.

• It is considered a liability because the company has an obligation to repay this amount to shareholders if the company is liquidated.

• Share capital is typically shown under the 'Shareholders' Equity' section of the Balance Sheet.

• It is im...read more

Call, bind, and apply are methods in JavaScript used to manipulate the context of a function.

• Call method is used to call a function with a specified 'this' value and arguments provided individually.

• Bind method is used to create a new function that, when called, has a specified 'this' value and arguments provided upfront.

• Apply method is similar to call method, but arguments are passed as an array.

RSI is calculated based on the average gain and loss over a specified period of time.

• RSI is calculated using the formula: RSI = 100 - (100 / (1 + RS)), where RS = Average Gain / Average Loss

• Typically, RSI is calculated over a 14-day period, but this can be adjusted based on the trader's preference

• RSI values range from 0 to 100, with readings above 70 indicating overbought conditions and readings below 30 indicating oversold conditions

Primary markets are where new securities are issued for the first time, while secondary markets are where existing securities are bought and sold.

• Primary markets involve the issuance of new securities by companies or governments to raise capital.

• Secondary markets involve the buying and selling of existing securities among investors.

• Primary markets provide capital to companies, while secondary markets provide liquidity to investors.

• Examples of primary markets include initial p...read more

EPS stands for Earnings Per Share. It is a financial metric that measures the profitability of a company.

• EPS is calculated by dividing the company's net income by the total number of outstanding shares.

• It is an important metric for investors as it helps them understand how much profit the company is making per share.

• EPS can be calculated for a specific period of time, such as a quarter or a year.

• For example, if a company has a net income of $1 million and 100,000 outstanding ...read more

Python code to read from and write to a file

• Use 'open()' function to open a file in read or write mode

• Use 'read()' method to read the contents of the file

• Use 'write()' method to write data to the file