M Power Micro Finance Interview Questions and Answers

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions.

• Involves recording financial transactions

• Summarizing financial information in financial statements

• Analyzing financial data to provide insights

• Reporting financial information to stakeholders

• Examples: preparing balance sheets, income statements, cash flow statements

Fundamental rules of accounting include the principles of consistency, conservatism, materiality, and others.

• The principle of consistency states that once an accounting method is chosen, it should be consistently applied.

• The principle of conservatism suggests that when in doubt, accountants should choose the option that is least likely to overstate assets and income.

• The principle of materiality states that only signifi...read more

Corporate action refers to events initiated by a publicly traded company that can affect its shareholders and securities.

• Corporate actions can include dividends, stock splits, mergers, acquisitions, spin-offs, and rights issues.

• These actions can impact the value of the company's stock and the rights of shareholders.

• Shareholders may need to take action or make decisions based on corporate actions announced by the compan...read more

Things that are separated or split into parts

• Mathematical operations like division

• Physical objects like a cake being divided into slices

• Groups of people or resources being divided for allocation

Ex date is the date on or after which a security is traded without a previously declared dividend or distribution.

• Ex date is the date on which a security begins trading without the dividend or distribution.

• Investors who purchase the security on or after the ex date will not receive the upcoming dividend or distribution.

• The ex date is typically set two business days before the record date.

• For example, if a company decla...read more

Record date is the date on which a company determines the shareholders eligible to receive dividends or other distributions.

• Record date is set by the company's board of directors.

• Shareholders must own the stock before the record date to receive the dividend.

• The record date is important for determining who is entitled to vote at shareholder meetings.

• Example: If a company sets a record date of June 1st, shareholders who ...read more

Pay date is the date on which an employee receives their salary or wages.

• Pay date is typically set by the employer and can vary depending on the company's payroll schedule.

• It is the day when the employee's bank account is credited with their salary.

• Pay date can be weekly, bi-weekly, monthly, etc. depending on the company's policies.

• It is an important date for employees as it marks the day they receive their hard-earned

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 are often done to achieve economies of scale, expand market share, or gain competitive advantage.

• Examples include Disney's acquisition of 21st Century Fo...read more

Bonus shares are additional shares given to existing shareholders by a company, usually as a reward for holding shares.

• Bonus shares are issued by a company to its existing shareholders free of charge.

• They are given out of the company's profits or reserves.

• Bonus shares do not result in any cash outflow for shareholders.

• They increase the total number of shares outstanding but do not change the overall value of the compan...read more