ITC Infotech Finance Manager Interview Questions and Answers

Online assessment (Technical, English, Reasoning)

Q1. Difference between Balance sheet and trial balance
Ans. 
Balance sheet shows assets, liabilities, and equity at a specific point in time. Trial balance lists all ledger accounts with their balances.
• Balance sheet is a snapshot of a company's financial position at a specific point in time.

• Trial balance is a list of all ledger accounts with their balances to ensure debits equal credits.

• Balance sheet includes assets, liabilities, and equity sections.

• Trial balance is used to prep...read more
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Q2. Standard costing formula
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Standard costing formula calculates the expected cost of a product based on predetermined standards.
• Standard costing formula includes direct materials, direct labor, and overhead costs.

• It helps in comparing actual costs with standard costs to identify variances.

• Formula: Standard Cost = Standard Quantity of Inputs x Standard Price of Inputs
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Q3. Journal entries for Prepaid Accruals Depreciation with accumulated depreciation concept Provision for Bad debts DTA and DTL
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Explanation of journal entries for Prepaid, Accruals, Depreciation, Provision for Bad debts, DTA, and DTL.
• Prepaid expenses are initially recorded as assets and then expensed over time as they are used up.

• Accruals are expenses incurred but not yet paid or revenue earned but not yet received.

• Depreciation is the allocation of the cost of a fixed asset over its useful life, with accumulated depreciation representing the to...read more
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Q4. Case study on Ind AS 115
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Q5. Preparation of balance sheet and computation of various ratios
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Preparation of balance sheet involves listing assets, liabilities, and equity. Ratios are computed using financial data from the balance sheet.
• List all assets, liabilities, and equity on the balance sheet

• Calculate various financial ratios such as current ratio, debt to equity ratio, and return on equity

• Use formulae like Current Ratio = Current Assets / Current Liabilities

• Interpret the ratios to analyze the financial he
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Q6. Accounting principles
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Q1. What is DTA and DTL
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DTA stands for Deferred Tax Asset and DTL stands for Deferred Tax Liability.
• DTA is an asset recorded on a company's balance sheet that may be used to reduce taxable income in the future.

• DTL is a liability recorded on a company's balance sheet that represents taxes that have been accrued but not yet paid.

• DTA arises when a company has overpaid taxes or has tax deductions that exceed its taxable income.

• DTL arises when a c...read more
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Q2. Accounting entry for accumulated depreciation
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Accumulated depreciation is a contra asset account that represents the total depreciation expense taken on an asset since it was acquired.
• Accumulated depreciation is recorded on the balance sheet as a reduction from the gross amount of fixed assets to arrive at the net book value.

• The accounting entry for accumulated depreciation involves debiting the depreciation expense account and crediting the accumulated depreciati...read more
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Q3. Few resume based questions
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Q4. Standard costing formula
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Standard costing formula calculates the expected cost of a product based on predetermined standards.
• Standard costing formula = Standard cost of direct materials + Standard cost of direct labor + Standard manufacturing overhead cost

• Standard cost of direct materials = Standard quantity of materials x Standard price per unit

• Standard cost of direct labor = Standard hours of labor x Standard rate per hour

• Standard manufactur...read more
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Q5. Difference between budgeting and forecasting
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Budgeting involves setting financial goals and allocating resources, while forecasting predicts future financial outcomes based on past data and trends.
• Budgeting is a plan for how to allocate resources and achieve financial goals

• Forecasting predicts future financial outcomes based on past data and trends

• Budgeting is typically done on an annual basis, while forecasting can be done on a shorter or longer term basis

• Budget...read more
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Q6. Meaning of variance analysis
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Variance analysis is a technique used to identify and analyze the difference between planned financial outcomes and actual results.
• Variance analysis helps in understanding the reasons for deviations from budgeted or expected figures.

• It involves comparing actual financial performance with budgeted or standard performance.

• Common types of variances include price variance, quantity variance, and mix variance.

• Variance analy...read more
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Q1. Tell me about yourself.
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Q1. Golden rules of accounting
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The golden rules of accounting are basic principles that guide the process of recording financial transactions.
• The golden rule of accounting is that for every debit entry, there must be an equal credit entry.

• There are three types of accounts: personal, real, and nominal.

• Personal accounts deal with individuals or organizations, real accounts deal with assets and liabilities, and nominal accounts deal with income and exp...read more
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Q1. What is TDS under income tax
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TDS stands for Tax Deducted at Source, a system where tax is deducted by the payer at the time of making payment.
• TDS is deducted by the payer at the time of making certain payments like salary, rent, commission, etc.

• The deducted amount is then deposited with the government on behalf of the payee.

• TDS rates vary based on the type of payment and the payee's status.

• TDS ensures a regular inflow of taxes to the government an...read more
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Q1. Why do we hire you
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Q2. Self introduction and work experience
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Q1. How long you’ll stay with the company??
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Q2. What is your future plans??
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Q1. What is the difference between EV and Equity Value
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EV includes both debt and equity while Equity Value only includes equity.
• EV = Equity Value + Debt - Cash

• Equity Value = Market Capitalization + Preferred Stock + Minority Interest - Cash

• EV is used to determine the total value of a company while Equity Value only represents the value of the shareholders' equity

• EV is often used in M&A transactions while Equity Value is used to determine a company's stock price
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Q1. About revenue recognition
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Q2. Forecasting, Budgeting
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