Britannia Interview Questions and Answers

Accrued income and expenses are revenues and expenses that have been earned or incurred, but not yet received or paid.

• Accrued income is revenue that has been earned but not yet received. It is recorded as a debit to an asset account and a credit to a revenue account.

• Accrued expenses are expenses that have been incurred but not yet paid. They are recorded as a debit to an expense account and a credit to a liability account.

• Accrued income and expenses are typically adjusted at ...read more

Dividend is a distribution of a portion of a company's earnings to its shareholders.

• Dividends are typically paid in cash or additional shares of stock.

• Journal entry for cash dividend: Debit Retained Earnings, Credit Dividends Payable.

• Journal entry for stock dividend: Debit Retained Earnings, Credit Common Stock or Paid-in Capital.

• Dividends reduce the company's retained earnings and are recorded on the balance sheet.

• Dividends are usually declared by the company's board of dire...read more

A bond is a debt investment where an investor loans money to an entity which borrows the funds for a defined period at a fixed interest rate.

• Bonds are issued by governments, municipalities, corporations, and other entities to raise capital.

• Types of bonds include government bonds, corporate bonds, municipal bonds, and convertible bonds.

• Government bonds are issued by national governments and are considered low-risk investments.

• Corporate bonds are issued by companies to raise ca...read more

Asset classes refer to different types of investments that can be made, each with its own risk and return characteristics.

• The main asset classes are stocks, bonds, cash, and real estate

• Stocks represent ownership in a company and offer the potential for high returns but also high risk

• Bonds are debt securities that offer a fixed income stream but lower returns than stocks

• Cash includes savings accounts, money market funds, and other short-term investments with low risk and low r...read more

Options Greeks are a set of risk measures that help traders understand the sensitivity of an option's price to various factors.

• Options Greeks include Delta, Gamma, Theta, Vega, and Rho.

• Delta measures the change in the option price for a $1 change in the underlying asset price.

• Gamma measures the rate of change of Delta.

• Theta measures the change in the option price with the passage of time.

• Vega measures the sensitivity of the option price to changes in implied volatility.

• Rho me...read more

Options are contracts that give the holder the right to buy or sell an underlying asset at a predetermined price within a specified time period.

• Options can be used for hedging or speculation

• Call options give the holder the right to buy the underlying asset at a predetermined price

• Put options give the holder the right to sell the underlying asset at a predetermined price

• Options have an expiration date and strike price

• Options can be American or European style

Options are financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a specified price before or on a specified date.

• Options can be used for hedging, speculation, or generating income.

• There are two types of options: call options (which give the holder the right to buy an asset) and put options (which give the holder the right to sell an asset).

• Options have an expiration date and a strike price, which is the price at which the as...read more