50+ Bezohminds Interview Questions and Answers

Golden rules of accounting are basic principles to be followed while recording financial transactions. Accrual journal entries record revenue or expenses when they are earned or incurred, regardless of when payment is received or made.

• The three golden rules of accounting are: debit the receiver, credit the giver; debit what comes in, credit what goes out; and debit all expenses and losses, credit all incomes and gains.

• Accrual journal entries record revenue or expenses when th...read more

High water mark, corporate actions, journal entries, forwards, options, and in the money options are all important concepts in hedge funds.

• High water mark refers to the highest peak in a hedge fund's net asset value (NAV) history.

• Corporate actions such as splits and spin-offs can affect the value of a hedge fund's holdings.

• Journal entries are used to record transactions in a hedge fund's accounting system.

• Forwards are contracts that allow investors to buy or sell an asset at ...read more

Journal entries for buying securities or accruing expenses involve debiting the relevant account and crediting cash or accounts payable.

• When buying securities, debit the securities account and credit cash

• When accruing expenses, debit the relevant expense account and credit accounts payable

• Journal entries should always balance with debits equaling credits

Mutual funds are investment vehicles that pool money from multiple investors to purchase securities.

• Mutual funds are managed by professional fund managers

• Investors can buy and sell mutual fund shares at the end of each trading day

• Examples of mutual funds include Vanguard 500 Index Fund, Fidelity Contrafund, and American Funds Growth Fund of America

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

• Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.

• Investors buy shares of the mutual fund, which represent a portion of the holdings of the fund.

• People invest in mutual funds to diversify their investment portfolio, reduce risk, and access professional management.

• Mu...read more

Corporate action refers to any event initiated by a publicly traded company that impacts its shareholders or securities.

• Types of corporate actions include dividends, stock splits, mergers and acquisitions, rights issues, and spin-offs.

• Dividends are payments made to shareholders from a company's profits.

• Stock splits involve dividing existing shares into multiple shares to lower the price per share.

• Mergers and acquisitions occur when two companies combine or one company buys an...read more

Derivatives are financial instruments whose value is derived from an underlying asset. Examples include forward contracts, futures contracts, options, and the Black-Scholes model.

• Derivatives are financial instruments that derive their value from an underlying asset, such as stocks, bonds, commodities, or currencies.

• An example of a derivative is a forward contract, which is an agreement between two parties to buy or sell an asset at a specified price on a future date.

• A forward...read more

NAV stands for Net Asset Value and is a measure of a fund's value. A hedge fund is an investment fund that uses various strategies to generate high returns.

• NAV is calculated by subtracting a fund's liabilities from its assets

• Hedge funds are typically only available to accredited investors due to their high-risk strategies

• Hedge funds can use leverage, short selling, and derivatives to generate returns

• Some hedge funds specialize in specific industries or markets, such as techno...read more

CDS are Credit Default Swaps, a type of financial derivative used to transfer credit risk from one party to another.

• CDS are contracts between two parties where one party agrees to compensate the other in case of a credit event, such as default or bankruptcy, of a third party.

• Companies underwrite CDS to hedge against the risk of default by a borrower or counterparty, or to speculate on the creditworthiness of a particular entity.

• CDS played a significant role in the 2008 financ...read more

I will handle client queries by actively listening, empathizing, and providing clear and concise solutions.

• Listen actively to understand the client's concern

• Empathize with the client's situation

• Provide clear and concise solutions

• Follow up to ensure client satisfaction

Derivative is a financial contract whose value is derived from an underlying asset. Spot refers to the current market price of an asset. Option is a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price. Forward is a contract that obligates the buyer and seller to trade an asset at a predetermined price and date in the future.

• Derivative is a contract whose value is derived from an underlying asset

• Spot refers to the c...read more

NAV stands for Net Asset Value. It is the value of a mutual fund's assets minus its liabilities.

• NAV is calculated by dividing the total value of a mutual fund's assets by the number of outstanding shares.

• NAV is calculated at the end of each trading day.

• NAV is used to determine the price at which investors can buy or sell shares in a mutual fund.

• NAV can be affected by changes in the value of the underlying assets, as well as by fees and expenses.

• For example, if a mutual fund h...read more

Shorting securities involves borrowing and selling securities in the hopes of buying them back at a lower price.

• Shorting is a bet that the price of a security will decrease.

• Shorting involves borrowing securities from a broker and selling them on the market.

• If the price of the security decreases, the short seller can buy it back at a lower price and return it to the broker, making a profit.

• If the price of the security increases, the short seller will have to buy it back at a h...read more

Corporate actions are events initiated by a public company that impact its shareholders and securities.

• Dividends - distribution of profits to shareholders

• Stock splits - dividing existing shares into multiple shares

• Mergers and acquisitions - combining two companies into one

• Spin-offs - creating a new independent company from an existing one

• Rights issues - offering existing shareholders the right to buy additional shares at a discounted price

When trading in equity stock market, I check various factors such as company financials, market trends, news, and technical analysis.

• Company financials - revenue, profit margins, debt levels

• Market trends - overall market direction, sector performance

• News - company announcements, industry news

• Technical analysis - price movements, volume trends

Shorting a put option involves selling a put option with the expectation that the price of the underlying asset will rise.

• Shorting a put option is a bearish strategy

• The seller of the put option is obligated to buy the underlying asset at the strike price if the buyer decides to exercise the option

• Shorting a put option can be profitable if the price of the underlying asset rises or remains stable

• However, if the price of the underlying asset falls significantly, the seller of t...read more

Hedge funds are alternative investment vehicles that use pooled funds from accredited investors to generate high returns.

• Hedge funds are managed by professional fund managers.

• They use a variety of investment strategies, including leveraging, short-selling, and derivatives trading.

• Hedge funds are only available to accredited investors due to their high-risk nature.

• They are not regulated by the SEC like mutual funds.

• Examples of hedge funds include Bridgewater Associates, Renais...read more

Accrual accounting is a method of accounting that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Revenue and expenses are recognized when they are earned or incurred, not when cash is received or paid.

• Accrual accounting provides a more accurate picture of a company's financial position and performance.

• It follows the matching principle, where revenues are matched with the expenses that generated them.

• Examples include recognizing reve...read more

Stock split is a corporate action where a company increases the number of its outstanding shares by dividing each share into multiple shares.

• Stock split is done to make shares more affordable for investors and increase liquidity.

• There are different types of stock splits such as 2-for-1, 3-for-1, etc.

• Other types of corporate actions include mergers, acquisitions, spin-offs, and dividend payments.

• Corporate actions can affect the value of a company's stock and should be carefull...read more

OTC Derivatives are privately negotiated financial contracts between two parties, not traded on an exchange.

• OTC stands for Over-The-Counter

• OTC Derivatives are customized contracts between two parties

• They are not traded on an exchange

• They are used for hedging, speculation, and arbitrage

• Examples include swaps, options, and forwards

Price and yield have an inverse relationship. Binomial tree valuation model is a method to price options using a tree structure.

• Price and yield have an inverse relationship - as price increases, yield decreases.

• Binomial tree valuation model is a method to price options by creating a tree of possible price movements.

• The model calculates option prices at each node of the tree and works backwards to determine the option's present value.

• It is a flexible model that can handle vari...read more

Black and Scholes Model inputs include interest rate, stock price, volatility, time to expiration, and dividend yield. IRS stands for Interest Rate Swap and CDS stands for Credit Default Swap.

• Black and Scholes Model inputs: interest rate, stock price, volatility, time to expiration, dividend yield

• IRS (Interest Rate Swap) involves exchanging fixed interest rate payments for floating rate payments

• CDS (Credit Default Swap) is a financial derivative that allows investors to hedge...read more

The 3 golden rules of accounts are the basic principles of accounting that every accountant should follow.

• Rule 1: Debit the receiver, credit the giver - This means that when a business receives something, it should debit the account that receives it and credit the account that gave it.

• Rule 2: Debit what comes in, credit what goes out - This means that when a business receives something, it should debit the account that receives it and credit the account that gave it.

• Rule 3: D...read more

Answers to questions related to Associate Fund Accounting Manager position

• Types of breaks in reconciliation include cash breaks, position breaks, and transaction breaks

• Journal entries for prepaid expenses are recorded as assets, management fees are recorded as expenses, and dividends are recorded as income

• Corporate actions like spin-offs can affect NAV by changing the number of shares outstanding or the value of the underlying assets

• Position breaks can be caused by errors in ...read more

Futures are standardized contracts traded on exchanges, while forwards are customized contracts traded over-the-counter.

• Futures are traded on exchanges, while forwards are traded over-the-counter.

• Futures have standardized terms and are highly liquid, while forwards have customized terms and are less liquid.

• Futures are marked-to-market daily, while forwards are not.

• Examples of futures include S&P 500 futures, while examples of forwards include customized currency contracts.

I have experience in process improvement and optimization in my previous organization.

• Implemented Lean Six Sigma methodologies to reduce waste and increase efficiency

• Conducted process mapping and analysis to identify bottlenecks and areas for improvement

• Collaborated with cross-functional teams to develop and implement process improvements

• Trained and coached team members on new processes and procedures

Reconciliation is the act of restoring harmony or resolving conflicts between individuals or groups.

• Reconciliation involves acknowledging past wrongs and working towards forgiveness and understanding.

• It often requires open communication, empathy, and a willingness to compromise.

• Examples include reconciling with a friend after a disagreement, or countries seeking reconciliation after a war.

• Reconciliation can also refer to financial processes, such as balancing accounts or reso...read more

Right issue procedure refers to the process by which a company offers existing shareholders the opportunity to purchase additional shares at a discounted price.

• Company announces the right issue, specifying the number of shares offered and the subscription price.

• Existing shareholders are given the option to purchase the additional shares in proportion to their existing holdings.

• Shareholders can either exercise their rights or sell them on the open market.

• The subscription perio...read more

Bonus issue procedure involves issuing additional shares to existing shareholders at no cost.

• Bonus issue is a way for companies to reward shareholders without affecting their cash reserves.

• Shareholders receive additional shares in proportion to their existing holdings.

• The procedure involves approval from the board of directors and shareholders.

• Companies may issue bonus shares to increase liquidity or improve market perception.

• Example: Company X announces a 1:1 bonus issue, me...read more

Options are financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a specific price within a specific time period.

• Options can be used for speculation, hedging, 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 ass...read more

Zero bonds are bonds that do not pay interest but are sold at a discount to their face value.

• Zero bonds are also known as discount bonds.

• They are issued at a discount to their face value and do not pay any interest.

• The benefit of zero bonds is that they offer a higher yield than traditional bonds.

• They are often used by corporations and governments to finance long-term projects.

• Investors can benefit from zero bonds by purchasing them at a discount and receiving the full face v...read more

Options are financial instruments that give the holder the right, but not the obligation, to buy or sell an asset at a specific price within a specific time frame.

• Options can be call options (the right to buy) or put options (the right to sell).

• Options have an expiration date and a strike price at which the asset can be bought or sold.

• Options are commonly used for hedging, speculation, and generating income.

• Example: A call option on a stock gives the holder the right to buy t...read more

Factors bonds are fixed income securities representing debts, while NAV is the net asset value of a mutual fund. Derivative products include options which can be exercised at expiry.

• Factor bonds are fixed income securities issued by corporations or governments to raise capital.

• NAV (Net Asset Value) is the value of a mutual fund's assets minus its liabilities, divided by the number of shares outstanding.

• Derivative products, such as options, derive their value from an underlyin...read more

Equity refers to ownership in a company. Derivatives are financial instruments derived from underlying assets. Bonds are debt securities.

• Equity represents ownership in a company and can be in the form of common stock or preferred stock.

• Derivatives are financial instruments that derive their value from underlying assets such as stocks, bonds, or commodities. Examples include futures, options, and swaps.

• Bonds are debt securities issued by companies or governments to raise capit...read more

Hedge funds are less regulated, have higher risk and returns, and are only available to accredited investors. Mutual funds are more regulated, have lower risk and returns, and are available to anyone.

• Hedge funds are only available to accredited investors, while mutual funds are available to anyone.

• Hedge funds have higher risk and returns, while mutual funds have lower risk and returns.

• Hedge funds are less regulated than mutual funds.

• Hedge funds often use complex investment st...read more

Global accounting mutual funds are diversified investment vehicles that invest in a variety of international securities.

• Global accounting mutual funds provide investors with exposure to a diversified portfolio of international securities.

• They offer the potential for higher returns and lower risk through diversification.

• Investors can choose from a variety of global accounting mutual funds, each with its own investment strategy and risk profile.

• Advantages of global accounting m...read more

Validation test cases in Selenium are used to verify that the application under test meets the specified requirements.

• Validation test cases are designed to check if the application is working as expected.

• They are used to ensure that the application meets the specified requirements.

• Validation test cases can be automated using Selenium.

• Examples of validation test cases include verifying that a login page accepts valid credentials and rejects invalid ones, or that a search funct...read more

Polymorphism is the ability of an object to take on many forms.

• Polymorphism allows objects of different classes to be treated as if they are of the same class.

• It is achieved through method overriding and method overloading.

• Examples include function overloading in C++ and Java's method overriding.

• Polymorphism helps in achieving loose coupling and flexibility in code design.

Bathochromic shift refers to the shift of absorption towards longer wavelengths in a molecule or compound.

• It is also known as a red shift.

• Occurs when there is a change in the electronic structure of a molecule, leading to a lower energy transition.

• Commonly observed in dyes and pigments.

• Can be influenced by factors such as solvent polarity and pH.

Journal entries are used to record financial transactions in a company's accounting system.

• There are several types of journal entries, including adjusting, reversing, and recurring entries.

• Adjusting entries are made at the end of an accounting period to update accounts that are not up-to-date.

• Reversing entries are made at the beginning of an accounting period to cancel out adjusting entries made in the previous period.

• Recurring entries are made on a regular basis, such as mon...read more

I have experience working with both buyers and sellers to navigate financial transactions.

• I have assisted buyers in obtaining financing for their purchases, including mortgages and personal loans.

• I have worked with sellers to facilitate the transfer of funds and ensure that all necessary paperwork is completed.

• I am familiar with the legal and financial aspects of buying and selling, including taxes, fees, and regulations.

• I have experience communicating with clients and financ...read more

Excel and Word are popular software applications developed by Microsoft for creating spreadsheets and documents.

• Excel is used for creating and managing spreadsheets, performing calculations, and data analysis.

• Word is used for creating and editing documents, such as letters, reports, and resumes.

• Both Excel and Word are part of Microsoft Office suite.

• Excel uses cells, rows, and columns to organize data, while Word uses pages, paragraphs, and sections.

Corporate actions are events initiated by a company that can affect its stock price and shareholders.

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

• These actions can impact the value of a company's stock and the ownership structure of the company.

• Shareholders may need to take action, such as voting on a merger or tendering their shares in a buyback.

• Corporate actions are closely monitored by investors and analysts...read more

Futures and options are financial contracts that allow investors to buy or sell an asset at a predetermined price and date.

• Futures are contracts to buy or sell an asset at a future date and a predetermined price.

• Options are contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price and date.

• Futures and options are commonly used for hedging or speculation in financial markets.

• Examples of assets that can be traded through f...read more

The golden rules of accounting are basic principles that guide the recording of financial transactions.

• The first golden rule is the Debit-credit rule, which states that for every transaction, there must be at least two accounts involved, with one account debited and another credited.

• The second golden rule is the Real account rule, which states that real accounts (assets, liabilities, and equity) are debited for what comes in and credited for what goes out.

• The third golden rul...read more

Yes, I have extensive experience in using Selenium for automated testing.

• I have used Selenium WebDriver to automate web application testing

• I am proficient in writing test scripts using Java and Python

• I have experience in using Selenium Grid for parallel testing

• I have worked with various testing frameworks like TestNG and JUnit

• I have used Selenium to test web applications on different browsers and platforms

A framework is a set of guidelines, standards, and tools used to develop software applications.

• It provides a structure for organizing code and facilitates development.

• Frameworks can be front-end, back-end, or full-stack.

• Examples include React, Angular, Django, and Ruby on Rails.

Profit and loss can be calculated by subtracting the total expenses from the total revenue.

• Calculate total revenue by adding up all the income sources

• Calculate total expenses by adding up all the costs

• Subtract total expenses from total revenue to get profit or loss

• If the result is positive, it's a profit. If negative, it's a loss

Put is a verb that means to place something in a particular position or location.

• It can also mean to bring something into a particular state or condition.

• Examples: put the book on the shelf, put the baby to sleep, put on a coat.

• It can also be used in idiomatic expressions such as put up with (tolerate) or put off (postpone).

Net Asset Value (NAV) is the value of a fund's assets minus its liabilities, divided by the number of shares outstanding.

• NAV is calculated by subtracting the fund's liabilities from its assets.

• The result is then divided by the number of shares outstanding to determine the NAV per share.

• NAV is used to determine the price at which investors can buy or sell shares of the fund.

• It is an important metric for investors to assess the performance and value of a fund.

A call is a communication made through a telephone or other device to convey a message or information.

• A call can be made through a landline phone, mobile phone, or computer.

• Calls can be voice calls, video calls, or conference calls.

• Calls can be made for personal or professional purposes.

• Calls can be recorded for future reference or legal purposes.

Oops concept in C# refers to Object-Oriented Programming principles like inheritance, encapsulation, polymorphism, and abstraction.

• Inheritance allows a class to inherit properties and behavior from another class. Example: class B : A

• Encapsulation is the bundling of data with the methods that operate on that data. Example: private int age;

• Polymorphism allows methods to behave differently based on the object they are called on. Example: virtual void Display()

• Abstraction hides t...read more