30+ Assistant Manager Finance Interview Questions and Answers

Provision for doubtful debts is an estimated amount set aside to cover potential losses from customers who may not pay their debts.

• The accounting entry for provision for doubtful debts is a debit to the provision for doubtful debts account and a credit to the bad debt expense account.

• This is necessary because it helps to accurately reflect the true value of accounts receivable on the balance sheet.

• Without this provision, the accounts receivable balance would be overstated and...read more

Cash flow of a company with continued and discontinued operations is calculated by combining cash flows from both segments.

• Combine cash flows from both continued and discontinued operations to get total cash flow

• Consider any one-time gains or losses from discontinued operations separately

• Analyze the impact of discontinued operations on overall cash flow

• Ensure accurate reporting of cash flows from both segments in financial statements

Yes, I have experience of working on Oracle ERP system.

• I have worked on Oracle ERP system for 2 years in my previous job.

• I am proficient in using Oracle Financials and Oracle Procurement modules.

• I have experience in configuring and customizing Oracle ERP system to meet business requirements.

• I have also provided training to new users on how to use Oracle ERP system.

Capital market instruments are financial products used to raise funds from investors for long-term investment purposes.

• Equity shares

• Debentures

• Bonds

• Commercial paper

• Treasury bills

• Preference shares

• Mutual funds

• Exchange-traded funds (ETFs)

• Derivatives

• Options

• Futures

• Swaps

VaR stands for Value at Risk, a measure used to assess the potential loss in value of a portfolio over a specific time period.

• VaR is a statistical measure used to quantify the level of financial risk within a portfolio.

• Variables used in calculating VaR include the portfolio value, the time period, and the level of confidence.

• For example, a 95% VaR of $1 million over a one-week period means there is a 5% chance of losing more than $1 million in that week.

Securitisation is the process of converting illiquid assets into marketable securities. MRR is Minimum Reserve Requirement & MHP is Minimum Holding Period.

• Securitisation involves pooling of assets and issuing securities backed by those assets

• MRR is the minimum amount of reserves that banks are required to hold by the central bank

• MHP is the minimum period for which banks are required to hold certain assets before selling them

• Securitisation helps in raising funds and reducing r...read more

Smartworks is a provider of flexible office spaces and coworking solutions.

• Smartworks has over 5 million sq. ft. of office space across India.

• They offer a range of office solutions including private offices, virtual offices, and meeting rooms.

• Smartworks has clients from various industries including IT, e-commerce, and healthcare.

• They have won several awards for their innovative workspace solutions.

Delta measures the rate of change of an option's price with respect to the underlying asset's price, while gamma measures the rate of change of delta with respect to the underlying asset's price.

• Delta is the first derivative of the option price with respect to the underlying asset price, while gamma is the second derivative of the option price with respect to the underlying asset price.

• Delta tells us how much the option price will change for a $1 change in the underlying asse...read more

Ind AS 115 is a revenue recognition standard that outlines a 5-step model for recognizing revenue.

• Ind AS 115 is a converged standard that replaces the existing revenue recognition guidance in Ind AS 18 and IAS 18.

• The 5-step model of Ind AS 115 includes: identification of the contract, identification of performance obligations, determination of transaction price, allocation of transaction price to performance obligations, and recognition of revenue when performance obligations...read more

Internal controls are procedures and policies implemented by an organization to ensure the integrity of financial and accounting information.

• Identify and assess risks

• Develop policies and procedures

• Implement controls

• Monitor and review controls

• Examples of internal controls include segregation of duties, access controls, and regular audits

The technical report should detail the land cost, house cost, and overall amount.

• The technical report should include a breakdown of the land cost and house cost.

• The overall amount should be the sum of the land cost and house cost.

• The report should provide a detailed analysis of the factors that contribute to the land and house costs.

• The report should also include any relevant financial calculations, such as depreciation or amortization.

• The report should be presented in a clea...read more

I have no experience in cross-border trucking.

NPV stands for Net Present Value, which is a financial metric used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

• NPV helps in determining whether an investment will be profitable or not by taking into account the time value of money.

• It is calculated by discounting all cash flows (both inflows and outflows) to their present value using a discount rate.

• A positive NPV indicates that the investm...read more

The Golden Rule of accounting states that debit the receiver and credit the giver.

• The Golden Rule is a fundamental principle in accounting.

• It helps in maintaining the balance in the accounting equation.

• According to the rule, for every transaction, there must be a debit entry and a corresponding credit entry.

• Debit refers to the left side of an account, while credit refers to the right side.

• The rule ensures that the accounting equation (Assets = Liabilities + Equity) remains in...read more

Generally accepted accounting principles are a set of rules and standards that companies must follow when preparing financial statements.

• GAAP ensures consistency and transparency in financial reporting

• GAAP includes guidelines for revenue recognition, expense recognition, and asset valuation

• Examples of GAAP include the matching principle, historical cost principle, and full disclosure principle

IRR stands for Internal Rate of Return, a metric used to evaluate the profitability of an investment.

• IRR is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

• It is used to compare the profitability of different investments or projects.

• A higher IRR indicates a more profitable investment.

• IRR is often used in capital budgeting to determine whether a project is worth pursuing.

• For example, if a project has an IRR of ...read more

The question is asking if the candidate has handled the profile before.

• Yes, I have handled similar profiles in my previous roles

• No, this would be a new experience for me

• I have experience in handling financial profiles but not specifically as an Assistant Manager

Yes, I am familiar with GST (Goods and Services Tax) which is a value-added tax levied on most goods and services sold for domestic consumption.

• GST is a consumption tax that is imposed on the supply of goods and services in India.

• It has replaced multiple indirect taxes like VAT, service tax, etc.

• GST has different slabs - 5%, 12%, 18%, and 28% - based on the type of goods or services.

• It aims to simplify the tax structure, reduce tax evasion, and boost economic growth.

Internal controls can be managed by establishing policies and procedures, segregating duties, monitoring activities, and conducting regular audits.

• Establish clear policies and procedures for financial transactions

• Segregate duties to prevent fraud and errors

• Monitor activities regularly to ensure compliance with policies and procedures

• Conduct regular audits to identify weaknesses and improve controls

• Train employees on internal controls and their responsibilities

• Use technology t...read more

Yes, I am willing to relocate to a new city for this opportunity.

• I am open to new experiences and challenges

• I have relocated before for work and am familiar with the process

• I am excited about the prospect of exploring a new city and culture

Variable costs change with production levels while fixed costs remain constant.

• Variable costs fluctuate based on production volume (e.g. raw materials, labor)

• Fixed costs remain the same regardless of production levels (e.g. rent, salaries)

• Variable costs are directly related to the level of output, while fixed costs are independent of output

• Understanding the distinction between variable and fixed costs is crucial for budgeting and decision-making in business

Ind AS stands for Indian Accounting Standards which are converged with International Financial Reporting Standards (IFRS).

• Ind AS are a set of accounting standards notified by the Ministry of Corporate Affairs (MCA) in India.

• They are based on IFRS and are mandatory for certain companies to follow.

• Ind AS aim to bring transparency, comparability, and consistency in financial reporting.

• They cover various aspects of accounting such as revenue recognition, financial instruments, le...read more

Yes, I have experience handling ERP systems in my previous roles.

• Managed ERP system for financial data analysis and reporting

• Implemented upgrades and enhancements to ERP system

• Trained team members on how to use ERP system effectively

Delta and gamma are terms used in finance to measure the sensitivity of an option's price to changes in the price of the underlying asset.

• Delta measures the rate of change of the option price with respect to changes in the price of the underlying asset. It ranges from -1 to 1 for call options and 0 to -1 for put options.

• Gamma measures the rate of change of delta with respect to changes in the price of the underlying asset. It shows how delta will change as the underlying asse...read more

Experience in handling related party transactions (RPT) is essential for Assistant Manager Finance role.

• Experience in identifying, monitoring, and disclosing related party transactions.

• Knowledge of regulatory requirements and accounting standards related to RPT.

• Ability to ensure arm's length transactions and prevent conflicts of interest.

• Experience in preparing RPT disclosures in financial statements.

• Examples: Reviewing contracts with related parties, analyzing transactions f...read more

Accrued liability refers to an expense that has been incurred but not yet paid or recorded.

• Accrued liability is a financial obligation that a company has incurred but has not yet paid.

• It is recorded as a liability on the company's balance sheet.

• Examples of accrued liabilities include salaries payable, interest payable, and taxes payable.

• Accrued liabilities are typically recognized through accrual accounting, matching expenses with the period in which they are incurred.

• They ar...read more

Accrued expenses are expenses that have been incurred but not yet paid or recorded.

• Accrued expenses are recognized as liabilities on the balance sheet.

• They represent expenses that have been incurred in one accounting period but will be paid in a future period.

• Examples of accrued expenses include salaries payable, interest payable, and utilities payable.

• Accrued expenses are typically recorded through adjusting entries at the end of an accounting period.

Yes, I am open for WFO (Work From Office)

• I am comfortable working from the office

• I understand the importance of being present in the office for certain tasks

• I am willing to adhere to the company's policies regarding WFO

ICD stands for International Classification of Diseases, used for coding diseases and medical procedures.

• ICD is a standardized system used for classifying diseases, injuries, and medical procedures.

• It is used for statistical and billing purposes in healthcare settings.

• ICD codes are alphanumeric codes that represent specific diagnoses or medical procedures.

• Familiarity with ICD coding can be beneficial for accurate documentation and reimbursement in healthcare finance.

• For examp...read more

The process of accounts payable involves recording and tracking all incoming invoices and payments to vendors.

• Receive invoices from vendors

• Verify accuracy of invoices

• Record invoices in accounting system

• Obtain approval for payment

• Schedule payments to vendors

• Reconcile payments with invoices

• Maintain vendor relationships