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
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Q2. Linking of BS, PL and CFS
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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
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Q3. Impact on Financial statements if raised 10 million additionally
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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
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Q4. Financial ratios
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Preparing a financial model

Business case, finance

Q1. Importance of Cashflow
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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
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Q2. What is NWC and how it is calculated.
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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
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Q1. What are business rule
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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.
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Q2. Asked about the ACL
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Basic logical & quantitative reasoning

Q1. General question on flow of entity process.
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Q2. Said as required, no stress.
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Q1. It was more related with the previous work experience and the kind of role and the technology you will be required to work on
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Q1. General role explanation and requirement
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