Associate Manager Finance Interview Questions and Answers

Deferred Revenue is revenue received in advance while Unbilled is revenue yet to be invoiced.

• Deferred Revenue is recognized as revenue over time or upon completion of the service/product

• Unbilled revenue is recognized as revenue when the invoice is issued

• Deferred Revenue is a liability on the balance sheet while Unbilled revenue is an asset

• Examples of Deferred Revenue include subscription fees, maintenance contracts, and retainers

• Examples of Unbilled revenue include work in pr...read more

Identified inefficiency in inventory management system, implemented automated tracking system resulting in cost savings.

• Identified manual inventory tracking was leading to errors and inefficiencies

• Researched and recommended implementation of automated inventory management system

• Collaborated with IT department to customize system to company's needs

• Trained staff on new system and monitored results

• Resulted in 20% reduction in inventory holding costs

I utilize various methods like historical data analysis, trend analysis, and zero-based budgeting to forecast operating expenses effectively.

• Historical Data Analysis: Review past operating expenses to identify patterns and trends. For example, if utility costs have increased by 5% annually, project a similar increase.

• Trend Analysis: Analyze market trends and economic indicators that may impact expenses, such as inflation rates or changes in supplier pricing.

• Zero-Based Budgeti...read more

Current taxation rates vary by country and type, including income, corporate, and sales taxes.

• Income Tax: Varies by income level; e.g., in the U.S., rates range from 10% to 37%.

• Corporate Tax: In the U.S., the federal rate is 21%, while some countries have lower rates.

• Sales Tax: Varies by state; e.g., California has a base rate of 7.25%, but local rates can increase this.

• Value Added Tax (VAT): Common in Europe; e.g., the UK has a standard VAT rate of 20%.

The accounting cycle is a series of steps that a company follows to record and report its financial transactions.

• The cycle starts with identifying and analyzing transactions

• Then, the transactions are recorded in the journal

• The journal entries are then posted to the ledger

• An unadjusted trial balance is prepared to ensure the debits and credits are equal

• Adjusting entries are made to update accounts for accruals and deferrals

• An adjusted trial balance is prepared to ensure the ac...read more

I have worked on fields such as financial analysis, budgeting, forecasting, and financial reporting.

• Financial analysis: Conducted variance analysis, trend analysis, and financial modeling to support decision-making.

• Budgeting: Prepared annual budgets, monitored actual vs. budgeted performance, and identified areas for cost savings.

• Forecasting: Developed financial forecasts based on historical data and market trends to predict future performance.

• Financial reporting: Prepared mo...read more

Amortization is the process of spreading out the cost of an intangible asset over its useful life.

• Amortization is similar to depreciation, but is used for intangible assets like patents, copyrights, and trademarks.

• It helps allocate the cost of an intangible asset over its useful life, reflecting its gradual consumption or expiration.

• The amortization expense is recorded on the income statement and reduces the asset's carrying value on the balance sheet.

• Example: A company purch...read more