10+ Corporate Finance Interview Questions and Answers

Receiving Rs.50000 at the beginning of the year is a better deal.

• Receiving a lump sum amount at the beginning of the year allows for better investment opportunities.

• The time value of money principle suggests that money received earlier is worth more than the same amount received later.

• Rs.50000 received at the beginning of the year can be invested in a fixed deposit or mutual fund, earning interest throughout the year.

• Rs.5000 per month may not be enough to invest in a profitab...read more

Resolved a conflict between audit team and management regarding revenue recognition policy

• Audit team identified potential revenue recognition issues in the financial statements

• Management disagreed with the audit team's findings and argued that their policy was in compliance with accounting standards

• I facilitated a meeting between the two parties to discuss the issue and review the relevant accounting standards

• After careful review and discussion, we agreed to revise the revenu...read more

Income statement for a carpenter buying and selling wood

• Revenue from selling wood

• Cost of purchasing wood

• Labor costs for carpentry work

• Equipment and tool expenses

• Transportation costs for wood delivery

• Overhead expenses such as rent and utilities

• Taxes and other fees

• Net income or loss

No, the number of PORs is not a reason for my CGPA.

• My CGPA is based on my academic performance and not on my extracurricular activities.

• While PORs can enhance my resume, they do not directly impact my grades.

• I have managed to maintain a good CGPA despite being involved in fewer PORs.

• My focus has always been on academics and I have dedicated my time accordingly.

Covid-19 has significantly impacted finance functions.

• Remote work has become the norm, leading to increased reliance on digital tools and technology.

• Cash flow management has become more critical due to economic uncertainty.

• Budgets and forecasts have become more challenging due to the unpredictable nature of the pandemic.

• Supply chain disruptions have affected inventory management and procurement.

• Financial reporting and auditing have become more complex due to changes in accoun...read more

Mergers and acquisitions refer to the consolidation of companies or assets through various financial transactions.

• Mergers involve the combination of two or more companies to form a new entity.

• Acquisitions involve one company purchasing another company or its assets.

• M&A can be friendly or hostile, depending on the willingness of the parties involved.

• M&A can result in cost savings, increased market share, and improved profitability.

• Examples of notable M&A deals include Disney's...read more

Recent amendments in Corporate Tax

• The Tax Cuts and Jobs Act of 2017 brought significant changes to corporate tax rates

• The CARES Act of 2020 provided relief measures for businesses affected by the pandemic

• The Taxpayer Certainty and Disaster Tax Relief Act of 2020 extended certain tax provisions

• The Consolidated Appropriations Act of 2021 included tax-related provisions such as PPP loan forgiveness

• States have also made changes to their corporate tax laws

P/E ratio is a financial metric used to evaluate a company's stock price relative to its earnings per share.

• Calculated by dividing the market price per share by the earnings per share

• Helps investors determine if a stock is overvalued or undervalued

• A high P/E ratio may indicate that investors have high expectations for future growth

• A low P/E ratio may indicate that the company is undervalued

• Can vary widely between industries and companies

• Example: A company with a stock price o...read more

Yes, I am proficient in advanced Excel and IndAS.

• I have extensive experience in using Excel for financial analysis, modeling, and reporting.

• I am familiar with advanced Excel functions such as VLOOKUP, PivotTables, and Macros.

• I have also worked with IndAS (Indian Accounting Standards) and have a good understanding of its principles and requirements.

• I am able to prepare financial statements and reports in compliance with IndAS.

• I am constantly updating my skills and knowledge in...read more

My strength lies in my analytical skills, enabling me to make data-driven decisions and optimize financial strategies effectively.

• Strong analytical skills: I excel at interpreting complex financial data to identify trends and opportunities.

• Attention to detail: I ensure accuracy in financial modeling and reporting, which minimizes errors and enhances decision-making.

• Effective communication: I can convey complex financial concepts clearly to stakeholders, facilitating better co...read more