Moody's Analytics Interview Questions, Process, and Tips

Dual effect of transactions refers to the impact of a transaction on both sides of the balance sheet.

• Every transaction has two effects - a debit and a credit

• Debit refers to an increase in assets or a decrease in liabilities

• Credit refers to a decrease in assets or an increase in liabilities

• For example, when a company borrows money, it increases its cash balance (debit) and increases its liabilities (credit)

EBITDA is a measure of a company's financial performance and is calculated as revenue minus expenses, excluding taxes, interest, depreciation, and amortization.

• EBITDA is a financial metric used to evaluate a company's profitability and financial health.

• It is calculated by subtracting operating expenses from revenue and adding back depreciation and amortization expenses.

• EBITDA is often used by investors and analysts to ...read more

Structured finance refers to complex financial instruments that are created by pooling together various financial assets.

• Structured finance involves the creation of securities that are backed by a pool of assets such as mortgages, loans, or bonds.

• These securities are then sold to investors who receive payments based on the cash flows generated by the underlying assets.

• Structured finance can be used to manage risk, rais...read more