200+ Finance Executive Interview Questions and Answers

The company has certain rules to follow such as removing footwear outside, no cafeteria, limited tea/coffee time, and filling out a form to go out.

• Footwear must be removed outside the company and chappals are provided for the washroom

• No cafeteria available, employees must eat at their desks

• Form must be filled out to leave the organization for any reason

• Tea and coffee time is limited to 3-5:30 pm

• Strict timings for coming in, but no set timings to leave

• 2nd and 4th Saturday off

The late date for filing and payment of TDS varies depending on the type of payment and the quarter in which it is due.

• For TDS deducted on salaries, the due date for filing and payment is typically the 7th of the following month.

• For TDS deducted on non-salary payments, the due date for filing and payment is typically the 30th of the following month.

• For TDS deducted on rent payments, the due date for filing and payment is typically the 30th of the following quarter.

• Late filing...read more

The PV of Cash Inflow is the present value of the expected future cash inflows generated by assets, materials, land, etc.

• PV of Cash Inflow is calculated by discounting the expected future cash inflows to their present value using an appropriate discount rate.

• The discount rate used is typically the required rate of return or the cost of capital.

• The PV of Cash Inflow helps in determining the value or worth of assets, materials, land, etc., by considering the time value of money...read more

Unknown amount received in bank account, how to treat in books of account?

• Verify the source of the amount

• Check if it is a revenue or capital receipt

• Record the amount in the appropriate account

• If unsure, consult with an accountant or auditor

• If the amount is significant, consider reporting it to the tax authorities

Yes, I am familiar with Tally ERP9, Advance Excel, PPT, Google sheets, and Success Broker application.

• I have extensive experience using Tally ERP9 for financial management and accounting tasks.

• I am proficient in using Advance Excel for data analysis, financial modeling, and creating complex formulas.

• I have created professional presentations using PPT for financial reporting and analysis.

• I am skilled in using Google sheets for collaborative financial planning and data sharing....read more

The statement that best reviews the overall health of a company is the cash flow statement.

• Cash flow statement shows the inflow and outflow of cash in a company.

• It indicates the company's ability to generate cash and manage its expenses.

• Positive cash flow indicates a healthy company, while negative cash flow indicates financial trouble.

• It helps in making investment decisions and predicting future financial performance.

• For example, a company with a positive cash flow can inves...read more

Answers to various questions related to finance and accounting topics.

• Depreciation is the allocation of the cost of tangible assets over their useful life, amortization is the allocation of the cost of intangible assets, and depletion is the allocation of the cost of natural resources.

• Land is not depreciated because it is considered to have an indefinite useful life and its value typically appreciates over time.

• Revenue recognition under IND AS 115 for service sector involves ...read more

Depreciation is recorded as an expense to allocate the cost of an asset over its useful life. Prepaid expenses are assets paid for in advance.

• Depreciation is recorded by debiting Depreciation Expense and crediting Accumulated Depreciation.

• Prepaid expenses are initially recorded as assets on the balance sheet and then expensed over time as they are used.

• PO stands for Purchase Order, a document issued by a buyer to a seller indicating types, quantities, and agreed prices for pr...read more

Yes, I am proficient in operating both Google Sheets and Success Broker application.

• I have experience in creating and managing spreadsheets in Google Sheets.

• I am familiar with the various functions and formulas in Google Sheets.

• I have used Success Broker application for data analysis and reporting.

• I am comfortable with navigating and using the features of both applications.

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

Accounting is the process of recording, summarizing, and analyzing financial transactions and activities.

• Accounting involves the systematic recording of financial transactions.

• It includes the preparation of financial statements such as balance sheets, income statements, and cash flow statements.

• Accounting follows certain principles and rules, such as the Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).

• The basic accounting ...read more

The default credit term given on an invoice as per the MSME Act is 45 days.

• The MSME Act mandates a default credit term of 45 days for invoices.

• This means that the buyer is required to make payment within 45 days of receiving the invoice.

• The credit term may be extended by mutual agreement between the buyer and seller.

• If no specific credit term is mentioned in the invoice, the default term of 45 days applies.

• Non-compliance with the credit term may result in penalties as per the...read more

I will recommend interest rates to clients based on market trends, financial goals, and risk tolerance.

• Analyze current market trends and economic indicators to determine the optimal interest rate recommendation

• Consider the client's financial goals and risk tolerance when suggesting interest rates

• Provide clients with various interest rate options and explain the potential benefits and risks of each

• Regularly review and adjust interest rate recommendations based on changing mark...read more

Yes, I am flexible with shift timings and location boundaries.

• I am open to working different shift timings to accommodate business needs.

• I am willing to travel within reasonable location boundaries for work.

• I understand the importance of flexibility in the finance industry.

To pass a provision entry, debit the expense account and credit the provision account. To reverse, do the opposite.

• Debit the expense account and credit the provision account to pass a provision entry

• To reverse, credit the expense account and debit the provision account

• Provision entries are made for expected expenses that have not yet been incurred

• Examples of provision entries include provision for bad debts, provision for warranty expenses, etc.

Two way matching compares PO and invoice, while three way matching adds goods receipt to the comparison.

• Two way matching ensures that the goods or services ordered match the invoice received.

• Three way matching adds an additional step of verifying that the goods have been received as per the PO.

• Three way matching is more comprehensive and reduces the risk of overpayment or payment for goods not received.

• Two way matching is commonly used for low-value purchases, while three way...read more

Bank balance is shown in balance sheet under various heads such as cash and cash equivalents, loans and advances, investments, etc.

• Cash and cash equivalents

• Loans and advances

• Investments

• Other assets

• Deposits

• Borrowings

• Other liabilities

Excel formulas like VLOOKUP, INDEX and MATCH have practical applications in financial analysis and reporting.

• VLOOKUP can be used to retrieve data from a table based on a specific value, such as finding the price of a product based on its name.

• INDEX and MATCH can be used together to look up data based on multiple criteria, such as finding the sales of a particular product in a specific region.

• These formulas can be used to automate financial reporting tasks, such as generating ...read more

There are various technical codes used in SAP for different purposes.

• Technical codes are used in SAP for identifying various objects and processes.

• Some commonly used technical codes in SAP include transaction codes, program codes, table codes, and message codes.

• Transaction codes are used to navigate to specific screens or execute specific functions in SAP.

• Program codes are used to define and execute custom programs in SAP.

• Table codes are used to identify specific database tab...read more

Accrued income is shown under the asset side of the balance sheet, while accrued expenses are shown under the liability side.

• Accrued income is recorded as a current asset on the balance sheet, representing revenue that has been earned but not yet received.

• Accrued expenses are recorded as a current liability on the balance sheet, representing expenses that have been incurred but not yet paid.

• Accrued income increases the total assets of the company, while accrued expenses incre...read more

Setting off GST involves claiming input tax credits and adjusting them against the output tax liability.

• Set off GST by claiming input tax credits

• Adjust input tax credits against output tax liability

• File GST returns to reconcile input and output tax

• Ensure compliance with GST laws and regulations

Provision for doubtful debt is an estimation of the amount of bad debt that a company is likely to incur.

• Provision for doubtful debt is a contra account to accounts receivable.

• It is created by recording an adjusting entry at the end of each accounting period.

• The amount of the provision is based on historical data and management's judgment.

• It reduces the net value of accounts receivable on the balance sheet.

• If the actual bad debt expense is less than the provision, the excess ...read more

GST is a tax reform implemented in India in 2017. It aims to simplify the tax structure and boost the economy.

• GST stands for Goods and Services Tax

• It replaces multiple indirect taxes with a single tax

• It has helped in reducing tax evasion and increasing tax compliance

• It has led to the formalization of the economy and increased transparency

• It has made interstate trade easier and reduced logistics costs

• It has led to a reduction in prices of goods and services in the long run

• It h...read more

Tally and Zoho are both accounting software, but they have differences in terms of features, pricing, and user experience.

• Tally is a popular accounting software primarily used in India, while Zoho is a cloud-based accounting software used globally.

• Tally offers comprehensive accounting features like inventory management, payroll, and taxation, whereas Zoho focuses more on small and medium-sized businesses with features like invoicing, expense tracking, and bank reconciliation....read more

Yes, I have knowledge of reconciliation, audit, and vendor payment management.

• I have experience in reconciling financial statements to ensure accuracy and completeness.

• I am familiar with conducting audits to assess financial controls and compliance with regulations.

• I have managed vendor payments by verifying invoices, processing payments, and resolving discrepancies.

• I have utilized accounting software and tools to streamline reconciliation and payment processes.

Commercial vehicle loan segment involves financing for new commercial vehicles, while used commercial vehicle loan segment involves financing for pre-owned commercial vehicles.

• Commercial vehicle loan segment typically involves financing for new trucks, vans, buses, etc.

• Used commercial vehicle loan segment involves financing for pre-owned trucks, vans, buses, etc.

• Interest rates for used commercial vehicle loans may be higher than for new commercial vehicle loans.

• Lenders may re...read more

Sometimes situations may seem manageable at first but require more effort than anticipated.

• It's important to regularly reassess the situation and adjust your efforts accordingly.

• Seeking help or advice from colleagues or mentors can provide valuable insights and support.

• Prioritizing tasks and breaking them down into smaller, more manageable steps can help in tackling unexpected challenges.

Shri Ram is not a big bank in the finance industry.

• Shri Ram is not a well-known name in the finance industry

• Big banks in the finance industry include JPMorgan Chase, Bank of America, and Wells Fargo

• Shri Ram may be a finance company, but it is not considered a big bank

A bank is a financial institution that accepts deposits from the public and creates credit. Management in a bank refers to the administration and oversight of its operations.

• A bank is a financial institution that provides services such as accepting deposits, lending money, and facilitating transactions.

• Management in a bank involves overseeing day-to-day operations, setting strategic goals, and ensuring compliance with regulations.

• Banks are regulated by government authorities ...read more

Email on a situation where GR is not done for the invoice

• Explain the importance of Goods Receipt (GR) in the invoicing process

• Describe a scenario where GR was missed or not completed

• Discuss the impact of not having GR on the payment process and inventory management

• Propose solutions to ensure timely and accurate GR in the future

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

Yes, I can prepare financial statements on my own.

• I have extensive experience in preparing financial statements.

• I am proficient in using accounting software and tools.

• I have a strong understanding of financial reporting standards and regulations.

• I can analyze financial data and present it accurately in the statements.

• I have successfully prepared financial statements in my previous roles.

• I am detail-oriented and ensure the statements are error-free.

PO processing for Beverages Products involves managing purchase orders for ingredients, packaging materials, and finished goods in the beverage industry.

• Understanding the procurement process for beverages products

• Managing purchase orders for ingredients such as fruits, flavors, and sweeteners

• Coordinating with suppliers for timely delivery of packaging materials like bottles and labels

• Ensuring accurate quantities and specifications for finished goods like bottled beverages

• Main...read more

Y-codes are custom codes used in SAP for finance-related transactions.

• Y-codes are created by companies to meet their specific business needs.

• They are used to track financial transactions that are not covered by standard SAP codes.

• Y-codes can be used for various purposes such as tracking expenses, revenue, or assets.

• Examples of Y-codes include YEXP for expenses, YREV for revenue, and YAST for assets.

• Y-codes can be customized to include additional fields for more detailed track...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

Accounts receivable involves managing outstanding invoices and payments from customers, while accounts payable involves managing payments to suppliers and vendors.

• Accounts receivable involves invoicing customers for goods or services provided

• Accounts receivable also includes tracking and following up on outstanding payments from customers

• Accounts payable involves managing payments to suppliers and vendors for goods or services received

• Accounts payable also includes ensuring t...read more

Revenue recognition as per IndAS 115

• Identify the contract with the customer

• Identify the performance obligations in the contract

• Determine the transaction price

• Allocate the transaction price to the performance obligations

• Recognize revenue when (or as) the entity satisfies a performance obligation

I expect to bring my expertise in financial analysis and strategy to drive growth and profitability for the company.

• I have a track record of identifying cost-saving opportunities and implementing effective financial controls.

• I am skilled in financial modeling and forecasting, which can help the company make informed decisions about investments and expansion.

• I am also experienced in developing and executing strategic plans that align with the company's goals and objectives.

• By ...read more

Reconciliation between GSTR 2B and books of accounts

• Compare the data in GSTR 2B with the data in the books of accounts

• Identify and rectify any discrepancies

• Ensure that all invoices and transactions are accounted for in both GSTR 2B and books of accounts

• Reconcile on a regular basis to avoid any errors or penalties

• Use software tools to simplify the process

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

The financial account is a component of a country's balance of payments that records transactions involving financial assets and liabilities.

• It tracks the flow of funds between a country and the rest of the world.

• It includes transactions such as foreign direct investment, portfolio investment, and loans.

• The financial account is divided into subcategories like direct investment, portfolio investment, and other investment.

• Direct investment involves the acquisition of a controll...read more

Simple interest is calculated on the principal amount only, while compound interest is calculated on both the principal and the accumulated interest.

• Simple interest is a fixed percentage of the principal amount.

• Compound interest is calculated on the principal and the accumulated interest.

• Simple interest is used for short-term loans and investments.

• Compound interest is used for long-term loans and investments.

• Examples of simple interest include savings accounts and short-term ...read more

My goal for future planning is to continuously learn and grow in my career while maintaining a healthy work-life balance.

• Continuously improve my skills and knowledge through training and development opportunities

• Set achievable career goals and work towards them

• Prioritize self-care and maintain a healthy work-life balance

• Stay up-to-date with industry trends and advancements

• Build strong professional relationships and network

• Contribute to the success of my organization

Sales and purchase invoices are documents used in financial transactions, while bank statements show transactions with a bank. AR stands for accounts receivable and AP stands for accounts payable.

• Sales and purchase invoices are documents used to record sales and purchases in a business.

• Bank statements show all transactions made with a bank account, including deposits, withdrawals, and fees.

• AR (accounts receivable) represents money owed to a company by its customers for goods ...read more

Two way matching compares invoice and purchase order, while three way matching adds receipt of goods to the comparison.

• Two way matching ensures that the invoice matches the purchase order in terms of quantity, price, and terms.

• Three way matching adds the receipt of goods to the comparison to ensure that the goods have been received and match the invoice and purchase order.

• Two way matching is commonly used for low-value purchases, while three way matching is used for high-valu...read more

LMI stands for Lenders Mortgage Insurance, required when a borrower has a deposit of less than 20% of the property value.

• LMI is a type of insurance that protects the lender in case the borrower defaults on their mortgage.

• It is typically required when the borrower has a deposit of less than 20% of the property value.

• The cost of LMI is usually added to the borrower's loan amount.

• LMI does not provide any protection or benefit to the borrower.