200+ Finance Executive Interview Questions and Answers

Revenue is income generated from the sale of goods or services, while capital expenses are investments in assets that provide long-term benefits.

• Revenue is the money a company earns from selling its products or services

• Capital expenses are investments in assets like buildings, equipment, or technology

• Revenue is typically recurring and essential for the day-to-day operations of a business

• Capital expenses are one-time investments that provide long-term benefits and are recorded...read more

I am familiar with various ERP systems such as SAP, Oracle, and Microsoft Dynamics.

• SAP

• Oracle

• Microsoft Dynamics

Reconciliation of bank involves comparing the bank statement with the company's records to ensure accuracy.

• Reconciliation is done to identify any discrepancies between the bank statement and the company's records.

• The process involves matching the transactions recorded in the company's books with those in the bank statement.

• Any differences are investigated and necessary adjustments are made.

• Common accounting entries in bank reconciliation include recording outstanding checks, ...read more

I am a quick learner and adapt to new things easily.

• I have a growth mindset and enjoy learning new things.

• I am open to feedback and willing to make changes.

• I have successfully adapted to new technologies and processes in my previous roles.

• I am proactive in seeking out new opportunities for learning and development.

Bank reconciliation is the process of comparing a company's bank statement with its own financial records to ensure accuracy.

• Bank reconciliation helps identify any discrepancies between a company's records and the bank's records.

• It involves comparing deposits, withdrawals, and other transactions on the bank statement with those in the company's accounting system.

• Any differences are noted and investigated to ensure accuracy and prevent fraud.

• Bank reconciliation is typically do...read more

Reports can be generated in Xero by navigating to the Reports tab and selecting the desired report.

• Navigate to the Reports tab

• Select the desired report

• Customize the report if necessary

• Export or print the report

Companies must file their income tax return by the 15th day of the 3rd month after the end of their fiscal year.

• Companies must file their income tax return by the 15th day of the 3rd month after the end of their fiscal year.

• For example, if a company's fiscal year ends on December 31st, the income tax return would be due on March 15th.

• Extensions may be available in certain circumstances, but the initial due date is typically the 15th day of the 3rd month after the fiscal year ...read more

MFN clause in tax treaties allows a country to grant the same tax treatment to one treaty partner as it does to any other country

• MFN clause ensures that a country cannot provide more favorable tax treatment to another country without extending the same treatment to all treaty partners

• It promotes fairness and prevents discrimination among treaty partners

• For example, if Country A has a tax treaty with Country B and later signs a new treaty with Country C that includes more favo...read more

NPV stands for Net Present Value, which is a financial metric used to determine the current value of future cash flows.

• NPV is calculated by subtracting the initial investment from the present value of expected future cash flows.

• It helps in determining whether a project or investment is profitable or not.

• A positive NPV indicates that the investment is profitable, while a negative NPV indicates that it is not.

• NPV takes into account the time value of money, which means that futu...read more

I have a strong understanding of accounting principles and financial analysis.

• Proficient in financial statement analysis and interpretation

• Experience in budgeting and forecasting

• Knowledge of GAAP and IFRS accounting standards

• Familiarity with financial software such as QuickBooks and SAP

• Ability to perform ratio analysis and financial modeling

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

The balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

• It provides a snapshot of a company's financial position.

• Assets are listed first, followed by liabilities and equity.

• The balance sheet equation is Assets = Liabilities + Equity.

• It helps investors and creditors evaluate a company's financial health.

• Examples of assets include cash, inventory, and property.

• Examples of liabilities include loans, accounts p...read more

Understanding time value of money, journal entries, and adjustment entries is crucial in finance.

• Time value of money refers to the concept that money available today is worth more than the same amount in the future due to its potential earning capacity.

• Journal entries are used to record financial transactions in the accounting system, with debits and credits balancing each other out.

• Adjustment entries are made at the end of an accounting period to ensure that the financial st...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

P2P types of PO refer to peer-to-peer purchase orders, while standard PO is a traditional purchase order used in business transactions.

• P2P types of PO involve direct transactions between individuals or businesses without the need for intermediaries

• Standard PO is a formal document issued by a buyer to a seller outlining the details of a purchase agreement

• Examples of P2P types of PO include online marketplaces like eBay or Etsy

• Examples of standard PO include purchase orders iss...read more

BRS stands for Bank Reconciliation Statement. Income tax due dates vary by country and type of taxpayer.

• BRS is a statement prepared to reconcile the balance as per company's books with the balance as per bank statement.

• Income tax due dates differ by country and type of taxpayer, usually falling on specific dates throughout the year.

• For example, in the US, individual income tax returns are due by April 15th each year.

• In India, the due date for filing income tax returns for ind...read more

FHOG stands for First Home Owner Grant.

• FHOG is a government initiative to help first home buyers purchase or build their first home.

• The grant amount and eligibility criteria vary by state or territory.

• For example, in New South Wales, Australia, the FHOG is $10,000 for new homes up to $750,000.

• Applicants must meet certain criteria such as being a first home buyer and intending to live in the property.

You can recharge office by providing facilities that boost employee productivity and well-being.

• Install ergonomic furniture and equipment

• Provide healthy snacks and drinks

• Offer flexible work arrangements

• Create a comfortable and inspiring work environment

• Organize team-building activities and events

Yes, Ind AS accounting refers to the Indian Accounting Standards which are converged with the International Financial Reporting Standards (IFRS).

• Ind AS accounting is the set of accounting standards adopted by companies in India.

• It aims to bring transparency, comparability, and consistency in financial reporting.

• Ind AS accounting covers various aspects such as recognition, measurement, presentation, and disclosure of financial statements.

• It is applicable to all companies liste...read more

The golden principle of accounting is the principle of double entry.

• The principle of double entry states that for every debit entry, there must be a corresponding credit entry of equal amount.

• This principle ensures that the accounting equation (Assets = Liabilities + Equity) remains in balance.

• It helps in maintaining accurate and reliable financial records.

• Example: If a company purchases inventory for $1,000, there will be a debit entry of $1,000 in the inventory account and ...read more

CIBIL is a credit information company that maintains credit records of individuals and companies.

• CIBIL stands for Credit Information Bureau (India) Limited.

• It collects credit-related information from banks and financial institutions.

• This information is used to create credit reports and credit scores for individuals and companies.

• Credit scores range from 300 to 900, with higher scores indicating better creditworthiness.

• Lenders use CIBIL reports and scores to evaluate loan appl...read more

Taxes are mandatory financial charges imposed on individuals or businesses by the government to fund public services and projects.

• Types of taxes include income tax, sales tax, property tax, and corporate tax.

• Income tax is levied on the income of individuals and businesses.

• Sales tax is imposed on the sale of goods and services.

• Property tax is based on the value of real estate owned by individuals or businesses.

• Corporate tax is a tax on the profits of corporations.

• Other types o...read more

I have worked in the financial field for over 10 years, specializing in financial analysis and budgeting.

• Expertise in financial analysis and budgeting

• Experience in financial forecasting and modeling

• Proficient in financial reporting and analysis tools such as Excel and QuickBooks

• Knowledge of financial regulations and compliance

• Experience in managing financial operations and teams

The journal entry for bad debt involves debiting the bad debt expense account and crediting the accounts receivable account.

• Debit the bad debt expense account

• Credit the accounts receivable account

• Record the amount of the bad debt

• Reduce the accounts receivable balance

• Example: Bad debt expense $500, Accounts receivable $500

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

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• It is calculated by dividing the cost of the asset by its useful life.

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

• Examples of assets that can be depreciated include buildings, vehicles, machine...read more

The IT sector refers to the industry that involves the development, maintenance, and use of technology and computer systems.

• IT sector encompasses companies that provide hardware, software, and services related to technology

• Jobs in the IT sector include software developers, network administrators, cybersecurity analysts, and IT support specialists

• IT professionals are responsible for designing, implementing, and managing technology solutions to meet business needs

I collect money from lenders through various methods such as wire transfers, ACH payments, checks, and online payment portals.

• Set up automatic payments through ACH transfers

• Accept payments via wire transfers

• Receive checks by mail or in person

• Utilize online payment portals for easy and secure transactions

I'm sorry, I don't have the available data to provide the stock price of this firm.

• Check the company's website or financial news sources for the current stock price

• Use financial websites or apps to track the stock price in real-time

• Contact the company's investor relations department for the latest stock price information

A sales invoice is a document issued by a seller to a buyer, detailing the products or services sold and the amount due. GST is a consumption tax levied on the supply of goods and services.

• Sales invoice is a document provided by a seller to a buyer, containing details of the transaction such as items sold, quantity, price, and payment terms.

• GST (Goods and Services Tax) is a consumption tax levied on the supply of goods and services in many countries.

• GST helps in reducing the ...read more

The question appears to be gibberish and does not make sense.

• The question seems to be random characters without any clear meaning.

• It is likely a mistake or typo in the question.

• There is no context or relevance to the question in a finance executive interview.

General ledger is a complete record of financial transactions of a company, organized by accounts.

• It contains all debit and credit entries for each account in the company's chart of accounts.

• It is used to prepare financial statements like the balance sheet and income statement.

• Entries in the general ledger are usually recorded using double-entry accounting.

• Examples of general ledger accounts include cash, accounts receivable, accounts payable, and expenses.

SAP is a software company that provides enterprise resource planning (ERP) solutions.

• SAP stands for Systems, Applications, and Products in Data Processing.

• SAP offers a range of software solutions for various industries, including finance, manufacturing, and logistics.

• SAP's ERP software helps businesses manage their operations, including financials, procurement, inventory, and sales.

• SAP also offers cloud-based solutions, such as SAP S/4HANA Cloud and SAP SuccessFactors.

• SAP has...read more

Sales is the process of selling goods or services to customers in exchange for money.

• Sales involves identifying potential customers, persuading them to make a purchase, and closing the deal.

• It is crucial for generating revenue and sustaining a business.

• Sales can be done through various channels such as direct selling, online sales, or through intermediaries like distributors.

• Effective sales strategies involve understanding customer needs, building relationships, and providing...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

I'm sorry, I don't have access to that information.

• No data available

Variance analysis on overhead parts

• Variance analysis is a tool used to identify and explain differences between actual and expected results

• Overhead parts refer to indirect costs such as rent, utilities, and maintenance

• Variance analysis on overhead parts can help identify areas where costs can be reduced or optimized

• Examples of overhead variances include spending more on utilities than budgeted or using less maintenance than expected

Fictitious assets are intangible assets that do not have any physical existence but are recorded in the balance sheet.

• Fictitious assets are not real assets but are recorded in the balance sheet for accounting purposes.

• They are intangible assets that do not have any physical existence.

• Examples of fictitious assets include deferred revenue, goodwill, and patents.

• Fictitious assets are not used in day-to-day operations and cannot be sold or transferred.

• They are usually written of...read more

My expected CTC is based on my experience, skills, and the market rate for the position.

• My expected CTC is in line with industry standards for someone with my level of experience and expertise.

• I have researched the average salary range for Finance Executives in this region and have based my expectations on that.

• I am open to negotiation based on the overall compensation package offered by the company.

• I am looking for a competitive salary that reflects my qualifications and con...read more

Unearned revenue is the money received in advance for goods or services that are yet to be delivered or rendered.

• It is a liability on the balance sheet

• It is recognized as revenue only when the goods or services are delivered or rendered

• Examples include magazine subscriptions, prepaid rent, and advance payments for software licenses

• It is also known as deferred revenue or advance payments

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

Standard variable rate is the interest rate set by a financial institution that can fluctuate based on market conditions.

• Standard variable rate is the interest rate charged on a loan or mortgage that can go up or down depending on various factors.

• It is typically tied to a benchmark rate, such as the prime rate or LIBOR.

• Changes in the standard variable rate can impact the monthly payments of borrowers.

• Borrowers may choose a fixed rate loan instead of a variable rate loan to av...read more

Prepared expenses refer to the expenses that are planned and budgeted for in advance.

• Prepared expenses are those that are anticipated and accounted for in a budget.

• These expenses are typically recurring and can include items such as rent, salaries, and utilities.

• By preparing for these expenses in advance, companies can better manage their cash flow and avoid unexpected financial challenges.

• Prepared expenses can also include planned investments in equipment or infrastructure.

• E...read more

A strong management structure ensures clear communication, efficient decision-making, and effective delegation of tasks.

• Clear communication channels help in conveying goals and expectations effectively.

• Efficient decision-making processes ensure timely actions and adaptability to changes.

• Effective delegation of tasks ensures that responsibilities are distributed evenly and tasks are completed efficiently.

• Strong management structure fosters accountability and transparency withi...read more