KPMG Global Services Associate Consultant Interview Questions, Process, and Tips

Q1. Enterprise value to equity value
Ans. 
Enterprise value is the total value of a company, including debt and equity, while equity value is the value attributable to shareholders.
• Enterprise value includes debt, equity, and cash, while equity value only includes the value attributable to shareholders.

• Enterprise value is used to determine the total value of a company, while equity value is used to determine the value available to shareholders.

• Enterprise value i...read more
Answered by AI
Add your answer
Q2. Linking of BS, PL and CFS
Ans. 
The balance sheet (BS), income statement (PL), and cash flow statement (CFS) are interconnected financial statements that provide a comprehensive view of a company's financial health.
• The balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

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

• The cash flow statement shows the inflows and o...read more
Answered by AI
Add your answer
Q3. Impact on Financial statements if raised 10 million additionally
Ans. 
Raising 10 million will increase assets and equity on the balance sheet, but also increase liabilities if borrowed.
• Assets will increase by 10 million, reflecting the additional cash or investments received.

• Equity will increase by 10 million if the funds are raised through equity financing.

• Liabilities will increase by 10 million if the funds are raised through debt financing.

• Income statement will not be directly impacte...read more
Answered by AI
Add your answer
Q4. Financial ratios
Add your answer

Preparing a financial model

Q1. How would you approach a company's financial data analysis as an ACON to identify areas of improvement?
Ans. 
As an ACON, I would approach a company's financial data analysis by following these steps:
• 1. Gather all relevant financial data, including income statements, balance sheets, and cash flow statements.

• 2. Analyze the data to identify key financial metrics and trends, such as revenue growth, profit margins, and cash flow patterns.

• 3. Compare the company's financial performance to industry benchmarks and competitors to ident...read more
Answered by AI
Add your answer
Q2. Introduce yourself
Add your answer
Q3. Questions around Pass Through certificates and similar financial instruments
Add your answer

Business case, finance

Q1. Importance of Cashflow
Ans. 
Cashflow is crucial for a business as it ensures liquidity, financial stability, and ability to meet obligations.
• Cashflow helps in managing day-to-day expenses and operational costs.

• It allows for timely payment of bills, salaries, and other financial obligations.

• Positive cashflow indicates financial health and ability to invest in growth opportunities.

• Negative cashflow can lead to financial distress, inability to pay d
Answered by AI
Add your answer
Q2. What is NWC and how it is calculated.
Ans. 
NWC stands for Net Working Capital, it is calculated by subtracting current liabilities from current assets.
• NWC = Current Assets - Current Liabilities

• Current assets include cash, accounts receivable, and inventory

• Current liabilities include accounts payable and short-term debt

• A positive NWC indicates a company's ability to meet its short-term obligations

• A negative NWC may indicate potential liquidity issues
Answered by AI
Add your answer

Q1. What are business rule
Ans. 
Business rules are guidelines or constraints that dictate how a business operates and makes decisions.
• Business rules are specific, actionable statements that define the behavior or actions within an organization.

• They are used to guide decision-making processes and ensure consistency in operations.

• Examples include pricing policies, return policies, and eligibility criteria for promotions.
Answered by AI
Add your answer
Q2. Asked about the ACL
Add your answer

Basic logical & quantitative reasoning

Q1. General question on flow of entity process.
Add your answer
Q2. Said as required, no stress.
Add your answer