Total Solution Finance Executive Interview Questions and Answers

Basic accounting questions

Q1. What is Accrual?
Ans. 
Accrual is a method of accounting where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.
• Accrual accounting recognizes revenue when it is earned, not when it is received.

• Expenses are recognized when they are incurred, not when they are paid.

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

• Examples includ...read more
Answered by AI
Add your answer
Q2. What is general ledger?
Ans. 
General ledger is a complete record of financial transactions of a company, organized by accounts.
• It contains all debit and credit entries for each account in the company's chart of accounts.

• It is used to prepare financial statements like the balance sheet and income statement.

• Entries in the general ledger are usually recorded using double-entry accounting.

• Examples of general ledger accounts include cash, accounts rece
Answered by AI
Add your answer
Q3. What is GAP and principles of revenue recognition
Ans. 
GAP refers to Generally Accepted Accounting Principles and revenue recognition principles dictate when and how revenue should be recorded.
• GAP is a set of accounting standards used to ensure consistency in financial reporting.

• Revenue recognition principles determine the timing and amount of revenue that should be recorded.

• Revenue is typically recognized when it is earned and realized or realizable.

• Examples of revenue re...read more
Answered by AI
Add your answer

Q1. What are your long term goals?
Add your answer
Q2. Why do you want to start with Accounting?
Ans. 
I have a passion for numbers and problem-solving, and I believe accounting is the foundation of finance.
• I enjoy working with numbers and analyzing financial data.

• I have strong attention to detail and organizational skills, which are essential in accounting.

• I believe accounting is the language of business and provides a solid foundation for a career in finance.

• I am interested in helping businesses make informed financia...read more
Answered by AI
Add your answer

Q1. Basic information about accounting
Add your answer
Q2. Basic accounting,journal entries
Add your answer

Q1. Tell me about yourself
Ans. My basic information & family background
Answered Anonymously
Add your answer
Q2. Basic information nothing like interview
Add your answer

Q1. What is Planning?
Ans. 
Planning is the process of setting goals, determining actions to achieve those goals, and allocating resources effectively.
• Setting specific, measurable, achievable, relevant, and time-bound (SMART) goals

• Creating a detailed plan of action to achieve the goals

• Allocating resources such as time, money, and manpower efficiently

• Monitoring progress and making adjustments as needed

• Examples: Financial planning for a company's b...read more
Answered by AI
Add your answer
Q2. What to build financial model?
Ans. 
A financial model is built to forecast future financial performance of a company or project.
• Identify the purpose of the financial model (e.g. budgeting, valuation, forecasting)

• Gather historical financial data and relevant assumptions

• Create income statement, balance sheet, and cash flow statement projections

• Perform sensitivity analysis to assess the impact of different variables

• Validate the model by comparing actual res
Answered by AI
Add your answer

Q1. What is depreciation?
Ans. 
Depreciation is the allocation of the cost of a tangible asset over its useful life.
• Depreciation is a non-cash expense that reduces the value of an asset over time.

• It reflects the wear and tear, obsolescence, or decrease in value of an asset.

• Common methods of calculating depreciation include straight-line, double declining balance, and units of production.

• Example: A company purchases a machine for $10,000 with a useful...read more
Answered by AI
Add your answer
Q2. What is the concept of budgeting?
Ans. 
Budgeting is the process of creating a plan to manage income and expenses over a specific period of time.
• Budgeting involves setting financial goals and creating a detailed plan to achieve them.

• It helps in tracking income, expenses, and savings to ensure financial stability.

• Budgeting can be done on a personal level, for businesses, or for specific projects.

• Examples of budgeting tools include spreadsheets, budgeting apps
Answered by AI
Add your answer

Q1. Covered all basic Finance topics in this first round like Journal entries, Accounting Concepts, Leverages, Ratios, Capital Structire, Cost of Capital Etc.
Add your answer

Q1. He asked me About Company, Strengths and weaknesses, how can i handle pressure, Why should we hire you etc questions
Add your answer

Q1. Covered all Finance and HR questions including My Resume questions
Add your answer

Q1. Questions on Finance, Balance Sheet and P&L
Add your answer
Q2. How do you validate comanys financial position
Add your answer

Q1. Accounting standards
Add your answer
Q2. Direct tax and indirect tax
Add your answer

Q1. What is the difference between EV and Equity Value
Ans. 
EV includes both debt and equity while Equity Value only includes equity.
• EV = Equity Value + Debt - Cash

• Equity Value = Market Capitalization + Preferred Stock + Minority Interest - Cash

• EV is used to determine the total value of a company while Equity Value only represents the value of the shareholders' equity

• EV is often used in M&A transactions while Equity Value is used to determine a company's stock price
Answered by AI
Add your answer