10+ Planet Spark Interview Questions and Answers

Private equity NAV calculation using waterfall distribution method

• Calculate the NAV by summing up the value of all investments in the fund

• Deduct any outstanding fees or expenses from the total value

• Apply the waterfall distribution method to distribute profits among investors based on the agreed upon terms

• Example: If the fund has $100 million in investments and $10 million in fees, the NAV would be $90 million after deducting fees

American distribution method focuses on mass distribution and convenience, while European distribution method emphasizes quality and personalized service.

• American distribution method typically involves larger warehouses and distribution centers to cater to a larger market.

• European distribution method often includes smaller, more localized distribution centers to provide personalized service to customers.

• American distribution method relies heavily on online shopping and fast d...read more

Accrual and cash entries impact the balance sheet differently.

• Accrual entry records revenue or expenses that have been earned or incurred but not yet received or paid.

• Cash entry records the actual inflow or outflow of cash.

• Accrual entry affects the income statement and balance sheet, while cash entry only affects the balance sheet.

• Accrual entry increases or decreases both revenue and expenses on the income statement, which in turn affects the net income.

• Accrual entry also inc...read more

Management fee is calculated based on a percentage of assets under management. Journal entry involves debiting Management Fee Expense and crediting Cash or Accounts Payable.

• Calculate management fee as a percentage of assets under management

• Journal entry: Debit Management Fee Expense, Credit Cash or Accounts Payable

A master-feeder structure is a common investment structure in private equity funds. Blockers and feeders are two types of entities within this structure.

• A master-feeder structure is used to pool capital from different types of investors into a single investment vehicle.

• The master fund is the main investment vehicle that holds the assets and makes the investments.

• Feeder funds are separate entities that pool capital from specific types of investors, such as individuals or insti...read more

The 3 Golden Rules of Accounting are: 1. Personal Account - Debit the receiver, Credit the giver 2. Real Account - Debit what comes in, Credit what goes out 3. Nominal Account - Debit all expenses and losses, Credit all incomes and gains

• Personal Account: Debit - Receiver, Credit - Giver (e.g. Cash A/c Dr To Ram A/c)

• Real Account: Debit - What comes in, Credit - What goes out (e.g. Bank A/c Dr To Sales A/c)

• Nominal Account: Debit - Expenses/Losses, Credit - Incomes/Gains (e.g. R...read more

Accrual concept in accounting refers to recognizing revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual concept ensures that financial statements accurately reflect the financial position of a company.

• It involves recording revenues when they are earned and expenses when they are incurred, regardless of when cash is received or paid.

• For example, if a company provides services to a client in December but does not receive payment until Janu...read more

The footnotes section of an investment report provides information on the levels of investment.

• The footnotes section typically includes details on the types and amounts of investments made.

• It may provide information on the allocation of funds across different asset classes or sectors.

• Footnotes can also disclose any significant changes in investment strategies or portfolio composition.

• Examples of footnotes could include details on investments in specific companies, industries,...read more

The day to day activities of a fund accountant involve maintaining financial records, reconciling transactions, preparing financial statements, and providing support to investors and auditors.

• Maintaining accurate financial records for the private equity fund

• Reconciling transactions and ensuring accuracy of investment data

• Preparing financial statements, including balance sheets, income statements, and cash flow statements

• Calculating and distributing investor capital calls and ...read more

The golden rule of journal entries is to debit the receiver and credit the giver.

• Debit the receiver account

• Credit the giver account

• Maintain the accounting equation (Assets = Liabilities + Equity)

Management fee is calculated as a percentage of assets under management.

• Management fee is typically calculated as a percentage of the total assets under management.

• The percentage can vary depending on the agreement between the fund manager and the client.

• For example, if the management fee is 2% and the total assets under management are $1 million, the fee would be $20,000.

PPM and LPA are legal documents used in private equity funds.

• PPM stands for Private Placement Memorandum, which is a legal document that provides detailed information about a private equity fund to potential investors.

• LPA stands for Limited Partnership Agreement, which is a legal document that outlines the terms and conditions of the partnership between the general partner and limited partners in a private equity fund.

• PPM focuses on providing information about the fund's inve...read more

String is immutable, while StringBuilder is mutable and more efficient for concatenating multiple strings.

• String is immutable, meaning once created, it cannot be changed. StringBuilder is mutable and allows for modifications.

• String concatenation creates a new string object each time, while StringBuilder modifies the existing object.

• StringBuilder is more efficient for concatenating multiple strings due to its mutable nature.

• Example: String str = "Hello"; StringBuilder sb = new...read more

The role of a Senior Quality Assurance Engineer 2 involves ensuring high-quality software products and processes, and the expected CTC depends on the company and location.

• Ensuring high-quality software products through testing and quality assurance processes

• Identifying and documenting software defects and working with development teams to resolve them

• Creating and executing test plans, test cases, and test scripts

• Collaborating with cross-functional teams to ensure product qual...read more

Life estate is a type of property ownership where a person has the right to use and enjoy a property during their lifetime.

• The person with the life estate is called the life tenant

• The life tenant cannot sell or transfer the property to someone else

• After the life tenant passes away, the property goes to the remainderman

• Life estates are often used in estate planning to transfer property to heirs while still allowing the original owner to use the property during their lifetime