InSync Analytics Interview Questions and Answers

Financial ratios test and MCQ test related to finance numericals

Q1. What is balance sheet, p&l and cash flow statement?
Ans. 
Balance sheet shows a company's assets, liabilities, and equity at a specific point in time. P&L shows a company's revenues, expenses, and profits over a period. Cash flow statement shows how cash flows in and out of a company.
• Balance sheet provides a snapshot of a company's financial position at a specific point in time.

• P&L (Profit and Loss) statement shows a company's revenues, expenses, and profits over a specific p...read more
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Q2. What is the negative item in the balance sheet?
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The negative item in the balance sheet is liabilities.
• Liabilities represent the company's debts or obligations that must be paid off in the future.

• Examples of liabilities include loans, accounts payable, and accrued expenses.

• Having high levels of liabilities relative to assets can indicate financial risk.
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Q1. Scenario Based Questions.
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Q2. Give Income statement format.
Ans. 
Income statement format includes revenue, expenses, and net income.
• Start with revenue at the top

• List all expenses below revenue

• Calculate net income by subtracting total expenses from revenue

• Include headings for each section such as 'Revenue', 'Expenses', and 'Net Income'

• Format should be: Revenue - Expenses = Net Income
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Q1. What is Vlookup?and if it's giving error then which symbol we use to remove the error?
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Vlookup is a function in Excel used to search for a value in a table and return a corresponding value from another column.
• Vlookup stands for 'Vertical Lookup'.

• It is commonly used in Excel to search for a value in the leftmost column of a table and return a value in the same row from a specified column.

• If Vlookup is giving an error, the symbol '#' is used to remove the error.

• For example, if the formula '=VLOOKUP(A2, B2:...read more
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Q2. Why should we select you over other candidates
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Simple apti round with two parts, one was mcq & the other was type the answer

Q1. Flow of income statement
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The flow of income statement refers to the sequence of steps involved in preparing and presenting an income statement.
• Start with revenue or sales at the top of the income statement

• Subtract cost of goods sold to calculate gross profit

• Deduct operating expenses to arrive at operating income

• Account for non-operating income and expenses

• Calculate net income by subtracting taxes and other adjustments

• Present the final net inco...read more
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Q2. What is Stocksplit?
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Stocksplit is a corporate action where a company divides its existing shares into multiple shares to decrease the price per share.
• Stocksplit increases the number of shares outstanding while decreasing the price per share.

• For example, in a 2-for-1 stock split, each shareholder receives an additional share for each share held, effectively halving the price per share.

• Stocksplits are usually done to make shares more afford...read more
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Q3. Enterprise value
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Financial modelling MCQ test

Q1. What is fcf and how to calculate fcf
Ans. 
FCF stands for Free Cash Flow, which is a measure of a company's financial performance and represents the cash that a company is able to generate after accounting for capital expenditures.
• FCF is calculated by subtracting capital expenditures from operating cash flow.

• Formula: FCF = Operating Cash Flow - Capital Expenditures

• Operating Cash Flow can be found in the company's cash flow statement.

• Capital Expenditures can be ...read more
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Q2. 3 statement interlinking
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Reasoning base questions

Q1. How is financial model build
Ans. 
Financial models are built by gathering historical financial data, making assumptions about future performance, and using various forecasting techniques.
• Gather historical financial data from income statements, balance sheets, and cash flow statements

• Make assumptions about future performance based on industry trends, company strategy, and economic conditions

• Use forecasting techniques such as discounted cash flow analysi...read more
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Q2. What is wacc and explain
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WACC stands for Weighted Average Cost of Capital, a calculation used to determine a company's cost of capital.
• WACC takes into account the cost of debt and equity in a company's capital structure

• It is calculated by multiplying the cost of each capital component by its proportional weight and summing the results

• WACC is used as a discount rate in valuation models such as discounted cash flow analysis

• A company's WACC is us...read more
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