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10+ Startek Interview Questions and Answers

Updated 25 Feb 2025
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Q1. What are the accounting entries for the purchase and sale of a depreciating asset?

Ans.

Accounting entries for purchase and sale of a depreciating asset

  • Purchase: Debit the asset account and credit the cash/bank account

  • Purchase: Debit the depreciation expense account and credit the accumulated depreciation account

  • Sale: Debit the cash/bank account and credit the asset account

  • Sale: Debit the accumulated depreciation account, debit the gain/credit the loss on sale account, and credit the asset account

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Q2. What is the average number of tea cups consumed by an Indian in a day?

Ans.

The average number of tea cups consumed by an Indian in a day varies widely depending on individual preferences and habits.

  • Tea consumption in India is influenced by factors such as region, age, gender, and cultural practices.

  • Some Indians may consume multiple cups of tea throughout the day, while others may not drink tea at all.

  • In general, it is common for many Indians to have at least 1-2 cups of tea per day.

  • Tea is a popular beverage in India and is often consumed during brea...read more

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Q3. x company is selling product. what market should it targer?

Ans.

x company should target the market segment that has a high demand for their product and where they can differentiate themselves from competitors.

  • Identify the target demographic based on age, gender, income level, etc.

  • Analyze market trends and consumer behavior to determine potential demand.

  • Consider geographical locations where the product is likely to be popular.

  • Evaluate competitors' target markets to find gaps or opportunities.

  • Conduct market research and surveys to gather in...read more

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Q4. What are the three components of financial statements?

Ans.

The three components of financial statements are income statement, balance sheet, and cash flow statement.

  • Income statement shows the company's revenues and expenses over a period of time.

  • Balance sheet provides a snapshot of the company's assets, liabilities, and shareholders' equity at a specific point in time.

  • Cash flow statement reports the cash generated and used by the company during a specific period.

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Q5. What are the meanings of prepaid expenses and depreciation?

Ans.

Prepaid expenses are costs paid in advance but not yet incurred, while depreciation is the allocation of the cost of an asset over its useful life.

  • Prepaid expenses are assets representing costs that have been paid for but have not yet been used or consumed.

  • Depreciation is the systematic allocation of the cost of a tangible asset over its useful life.

  • Prepaid expenses are typically recorded as assets on the balance sheet until they are used or consumed.

  • Depreciation expense is r...read more

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Q6. How will you find out how many seats are there in wankhede stadium?

Ans.

The number of seats in Wankhede Stadium can be found through official stadium capacity records, online sources, or by contacting the stadium management.

  • Check official stadium capacity records

  • Search online for information on Wankhede Stadium seating capacity

  • Contact Wankhede Stadium management for accurate seat count

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Q7. Explain the 3 financial statements and how they are linked to each other

Ans.

The three financial statements are the income statement, balance sheet, and cash flow statement, each providing different insights into a company's financial performance.

  • Income statement shows a company's revenues and expenses over a period of time, resulting in net income or loss.

  • Balance sheet provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time.

  • Cash flow statement details the cash inflows and outflows from operating, i...read more

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Q8. What are the components of a cash flow statement?

Ans.

Components of a cash flow statement include operating activities, investing activities, and financing activities.

  • Operating activities: Includes cash flows from day-to-day business operations, such as sales and expenses.

  • Investing activities: Involves cash flows from the purchase and sale of long-term assets, like property or equipment.

  • Financing activities: Includes cash flows related to raising or repaying capital, such as issuing stock or paying dividends.

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Q9. What types of assets are subject to depreciation?

Ans.

Assets such as machinery, equipment, vehicles, buildings, and furniture are subject to depreciation.

  • Machinery

  • Equipment

  • Vehicles

  • Buildings

  • Furniture

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Q10. What are the three basic financial statements

Ans.

The three basic financial statements are the income statement, balance sheet, and cash flow statement.

  • Income statement: Shows a company's revenues and expenses over a specific period of time.

  • Balance sheet: Provides a snapshot of a company's financial position at a specific point in time, including assets, liabilities, and equity.

  • Cash flow statement: Reports the cash generated and used by a company during a specific period of time.

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Q11. what id DCF? What is WACC?

Ans.

DCF is a valuation method that estimates the future cash flows of a company and discounts them to their present value. WACC is the weighted average cost of capital.

  • DCF stands for Discounted Cash Flow

  • It is a valuation method used to estimate the value of an investment based on its future cash flows

  • It involves projecting future cash flows, determining a discount rate, and calculating the present value of those cash flows

  • WACC stands for Weighted Average Cost of Capital

  • It is the ...read more

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Q12. How are the three financial statements linked

Ans.

The three financial statements (income statement, balance sheet, and cash flow statement) are linked through the flow of information and transactions between them.

  • The net income from the income statement flows into the equity section of the balance sheet.

  • Changes in the balance sheet accounts are reflected in the cash flow statement.

  • The cash balance at the end of the period on the cash flow statement should equal the cash balance on the balance sheet.

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Q13. Difference between equity value and enterprise value

Ans.

Equity value is the value of a company's shareholders' equity, while enterprise value is the total value of a company including debt and equity.

  • Equity value only considers the value of a company's equity, which is calculated as the market capitalization minus net debt.

  • Enterprise value takes into account both the equity and debt of a company, and is calculated as market capitalization plus debt minus cash.

  • Equity value is what shareholders would receive if a company were to be ...read more

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Q14. Guesstimate- Coffee cups sold in America in a week

Ans.

Approximately 500 million coffee cups are sold in America in a week.

  • Consider the population of America and the percentage of coffee drinkers

  • Take into account the number of coffee shops and their average sales per day

  • Factor in the consumption habits of Americans, such as daily coffee intake

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Q15. Difference between cash based and accural based

Ans.

Cash basis recognizes revenue and expenses when cash is actually received or paid, while accrual basis recognizes revenue and expenses when they are incurred.

  • Cash basis only records transactions when cash is exchanged, regardless of when the revenue is earned or expenses incurred.

  • Accrual basis records revenue when it is earned and expenses when they are incurred, regardless of when cash is exchanged.

  • Cash basis is simpler and easier to understand, while accrual basis provides ...read more

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Q16. FCFF and use in Valuation

Ans.

FCFF is a measure of a company's financial performance and is used in valuation to determine the value of a firm's equity.

  • FCFF stands for Free Cash Flow to Firm, which represents the cash flow available to all providers of capital, both debt and equity.

  • It is calculated as Operating Cash Flow minus Capital Expenditures minus Taxes plus Depreciation & Amortization.

  • FCFF is used in valuation models such as Discounted Cash Flow (DCF) to estimate the intrinsic value of a company.

  • By...read more

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Interview Process at Startek

based on 36 interviews
4 Interview rounds
Aptitude Test Round
One-on-one Round
Technical Round
HR Round
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