Muthoot Finance Junior Audit Executive Interview Questions and Answers

KYC stands for Know Your Customer.

• KYC is a process used by financial institutions to verify the identity of their customers.

• It involves collecting and verifying customer information to prevent fraud, money laundering, and other illegal activities.

• KYC requirements may include providing identification documents, proof of address, and other relevant information.

• Financial institutions are legally obligated to perform KYC p...read more

There are several types of accounts in finance, including savings, checking, investment, and credit accounts.

• Savings accounts are used to store money and earn interest.

• Checking accounts are used for everyday transactions and often come with a debit card.

• Investment accounts are used to buy and sell stocks, bonds, and other securities.

• Credit accounts allow individuals to borrow money and make purchases on credit.

• Other ty...read more

Bank reconciliation is the process of comparing a company's bank statement with its own financial records to ensure accuracy.

• Bank reconciliation helps identify any discrepancies between a company's records and the bank's records.

• It involves comparing deposits, withdrawals, and other transactions on the bank statement with those in the company's accounting system.

• Any differences are noted and investigated to ensure accu...read more

Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• It is calculated by dividing the cost of the asset by its useful life.

• There are different methods of calculating depreciation, such as straight-line, declining balance, and sum-of-the-years-digits.

• Examples of assets th...read more

Simple interest is calculated on the principal amount only, while compound interest is calculated on both the principal and the accumulated interest.

• Simple interest is a fixed percentage of the principal amount.

• Compound interest is calculated on the principal and the accumulated interest.

• Simple interest is used for short-term loans and investments.

• Compound interest is used for long-term loans and investments.

• Examples o...read more