20+ Finance Executive Interview Questions and Answers for Freshers

The journal entry for consultancy services instead of purchases

• Debit the Consultancy Expense account

• Credit the Accounts Payable or Cash account

• If the consultancy service is prepaid, debit the Prepaid Consultancy Expense account

• If the consultancy service is received but not yet paid, credit the Accrued Consultancy Expense account

Pvt. ltd, public, LLP, NPA, GST are different types of companies and taxes in India.

• Pvt. ltd company is a privately held company with limited liability.

• Public company is a company whose shares are traded publicly on stock exchanges.

• LLP stands for Limited Liability Partnership, which is a partnership in which partners have limited liability.

• NPA stands for Non-Performing Assets, which are loans that are not being repaid by borrowers.

• GST stands for Goods and Services Tax, which ...read more

There are several types of accounts in finance, including savings, checking, investment, and credit accounts.

• Savings accounts are used to store money and earn interest.

• Checking accounts are used for everyday transactions and often come with a debit card.

• Investment accounts are used to buy and sell stocks, bonds, and other securities.

• Credit accounts allow individuals to borrow money and make purchases on credit.

• Other types of accounts include retirement accounts, such as 401(k...read more

The rate of depreciation to be deducted depends on the asset's useful life and the chosen depreciation method.

• The rate of depreciation is determined by dividing the cost of the asset by its useful life.

• Different depreciation methods, such as straight-line, declining balance, or units of production, may result in different rates of depreciation.

• For example, if a company purchases a machine for $10,000 with a useful life of 5 years, the annual depreciation rate would be $2,000 ...read more

Motherson is a global automotive supplier with a focus on electrical distribution systems, automotive rearview mirrors, and polymer processing.

• Founded in 1975 in India

• Operates in 41 countries

• Employs over 135,000 people

• Supplies to major automotive companies such as BMW, Ford, and Volkswagen

• Acquired PKC Group, a Finnish wiring harness manufacturer, in 2017

Depreciation refers to the decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors.

• Depreciation is a non-cash expense that is recorded on the income statement.

• It is used to allocate the cost of an asset over its useful life.

• There are various methods of calculating depreciation, such as straight-line, declining balance, and sum-of-the-years'-digits.

• Depreciation is important for financial reporting and tax purposes.

• For example, a company...read more

The journal entry for purchases involves debiting the Purchases account and crediting the Accounts Payable or Cash account.

• Debit the Purchases account to record the cost of goods purchased

• Credit the Accounts Payable account if the purchase is made on credit

• Credit the Cash account if the purchase is made in cash

• If applicable, include additional accounts such as Sales Tax Payable or Discounts

• Example: Debit Purchases $10,000, Credit Accounts Payable $10,000

Our company has experienced steady growth over the past few years.

• We have consistently increased our revenue year over year.

• We have expanded our customer base and entered new markets.

• We have successfully launched new products and services.

• We have made strategic acquisitions to enhance our capabilities.

• We have improved operational efficiency and cost management.

• We have attracted top talent and built a strong team.

• We have gained recognition and industry awards for our performan...read more

GST stands for Goods and Services Tax. It is a comprehensive indirect tax levied on the supply of goods and services.

• GST is a single tax that replaced multiple indirect taxes in India.

• It was implemented on July 1, 2017, with the aim of simplifying the tax structure and eliminating cascading effects.

• GST is levied at every stage of the supply chain, from the manufacturer to the consumer.

• It has different tax rates for different goods and services, such as 0%, 5%, 12%, 18%, and 2...read more

The limit for 194C is Rs. 30,000 for a single payment and Rs. 1,00,000 in aggregate during a financial year.

• The limit for 194C is applicable for payments made to contractors and sub-contractors for carrying out any work.

• If the payment to a single contractor or sub-contractor exceeds Rs. 30,000 in a single transaction, TDS (Tax Deducted at Source) needs to be deducted at the rate of 1%.

• If the total payments made to a contractor or sub-contractor exceed Rs. 1,00,000 in a financ...read more

The golden rules in finance are principles that guide financial decision-making and management.

• Spend less than you earn

• Diversify your investments

• Save for emergencies

• Avoid unnecessary debt

• Plan for retirement

• Monitor and manage your credit score

The entry with GST refers to the recording of transactions involving the Goods and Services Tax.

• GST is a value-added tax levied on the supply of goods and services in many countries.

• When recording an entry with GST, the tax amount is typically added to the cost of the goods or services.

• The entry should include the GST amount, the tax code, and the relevant accounts for recording the transaction.

• For example, if a company purchases goods for $100 with a GST rate of 10%, the ent...read more

VLOOKUP is a function in Excel used to search for a specific value in a table and return a corresponding value.

• VLOOKUP stands for Vertical Lookup

• It is used to search for a specific value in the first column of a table and return a corresponding value in the same row from a specified column

• It requires four arguments: lookup value, table array, column index number, and range lookup (exact match or approximate match)

• It is commonly used for tasks such as matching data from differ...read more

Multiple credit cards refer to having more than one credit card from different issuers.

• Having multiple credit cards can help with diversifying rewards and benefits.

• It can also provide a backup in case one card is not accepted or compromised.

• Managing multiple credit cards requires keeping track of different due dates and balances.

• Some people use multiple credit cards to take advantage of different promotional offers or sign-up bonuses.

Selling cards involves understanding customer needs, showcasing product features, and closing the sale.

• Understand customer needs and preferences

• Highlight key features and benefits of the cards

• Address any concerns or objections the customer may have

• Close the sale by offering incentives or promotions

• Provide excellent customer service throughout the process

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• No data available

TDS 194C refers to Tax Deducted at Source under section 194C of the Income Tax Act.

• TDS 194C is applicable to payments made to contractors and sub-contractors for carrying out any work.

• The rate of TDS under section 194C is 1% for individuals and Hindu Undivided Families (HUF) and 2% for others.

• The threshold limit for TDS deduction under section 194C is Rs. 30,000 for single payment and Rs. 1,00,000 for aggregate payments in a financial year.

• The payer is required to deduct TDS ...read more

TDS 194I is a section of the Indian Income Tax Act that deals with the deduction of tax at source on rental income.

• TDS 194I applies to individuals or entities making rental payments above a specified threshold.

• The person making the payment is required to deduct a certain percentage as tax and remit it to the government.

• The current rate of TDS under section 194I is 10% for rent of land, building, or furniture and 2% for rent of plant and machinery.

• TDS 194I also applies to leas...read more

TDS 194J refers to the tax deduction at source on professional or technical services.

• TDS 194J is a provision under the Indian Income Tax Act.

• It requires the deduction of tax at source on payments made for professional or technical services.

• The rate of TDS for 194J is generally 10%.

• The person making the payment is responsible for deducting the tax and depositing it with the government.

• The recipient of the payment can claim credit for the TDS while filing their income tax retur...read more

Ind AS 116 is a new lease accounting standard that replaces the existing Ind AS 17.

• Ind AS 116 requires lessees to recognize most leases on their balance sheets as assets and liabilities.

• It eliminates the classification of leases as either operating leases or finance leases.

• Lessees must now recognize a right-of-use asset and a lease liability for almost all leases.

• The standard also introduces new disclosure requirements for leases.

• Examples of leases that will be affected inclu...read more

Theranos - a company that deceived investors and endangered patients with faulty blood testing technology.

• Theranos misled investors and patients about the accuracy and reliability of their blood testing technology.

• The company's founder, Elizabeth Holmes, was charged with massive fraud for deceiving investors and patients.

• Theranos faced multiple lawsuits and regulatory investigations for their unethical practices.

• Investors lost billions of dollars due to the company's fraudule...read more

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Derivatives can be used for hedging or speculation.

• Examples of derivatives include futures, options, and swaps.

• Derivatives can be traded on exchanges or over-the-counter.

• Derivatives can be complex and carry significant risk.

• Derivatives played a role in the 2008 financial crisis.

TDS stands for Tax Deducted at Source and TCS stands for Tax Collected at Source.

• TDS is the tax deducted by the payer while making payment to the payee.

• TCS is the tax collected by the seller from the buyer at the time of sale of specified goods.

• TDS is applicable on various incomes like salary, interest, commission, etc.

• TCS is applicable on certain transactions like sale of scrap, minerals, etc.

GST stands for Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.

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

• There are three types of GST in India: CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax).

• CGST is collected by the Central Government, SGST is collected by the State Government, and IGST is collected by t...read more