Finance Trainee

Finance Trainee Interview Questions and Answers for Freshers

Updated 10 Aug 2024

Q1. How can internal control be implemented in a company?

Ans.

Internal control can be implemented in a company through various measures such as segregation of duties, regular audits, and implementing policies and procedures.

Segregation of duties to prevent fraud and errors
Regular audits to ensure compliance with policies and procedures
Implementing policies and procedures to guide employees on proper conduct and processes
Establishing a system of checks and balances to monitor and review financial transactions
Training employees on interna...read more

Q2. How to calculate Cash flow from Operating Activities?

Ans.

Cash flow from operating activities is calculated by adjusting net income for non-cash items and changes in working capital.

Start with net income from the income statement
Add back non-cash expenses like depreciation and amortization
Adjust for changes in working capital items like accounts receivable, accounts payable, and inventory
Subtract any non-operating gains or losses
Example: Cash flow from operating activities = Net income + Depreciation - Change in accounts receivable ...read more

Q3. What is unbilled revenue.

Ans.

Unbilled revenue is revenue that has been earned but not yet invoiced to the customer.

Unbilled revenue is also known as accrued revenue or deferred revenue.
It is common in industries where services are provided over a period of time, such as consulting or software development.
Unbilled revenue is recorded as a liability on the balance sheet until an invoice is issued.
Once an invoice is issued, the unbilled revenue is recognized as revenue on the income statement.
For example, a...read more

Q4. Budget and types of budget

Ans.

Budget is a financial plan that outlines expected income and expenses. Types include static, flexible, and rolling budgets.

Budget is a financial plan that helps organizations allocate resources and achieve their goals.
Static budget is a fixed budget that remains unchanged regardless of actual sales or production.
Flexible budget adjusts to changes in sales or production levels.
Rolling budget is a continuous budget that is updated regularly throughout the year.
Other types of bu...read more

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Q5. Types of Financial Statements.

Ans.

Financial statements are documents that provide information about a company's financial performance and position.

Income Statement: Shows a company's revenues and expenses over a specific period of time.
Balance Sheet: Provides a snapshot of a company's assets, liabilities, and equity at a specific point in time.
Cash Flow Statement: Details the cash inflows and outflows of a company during a specific period.
Statement of Changes in Equity: Shows the changes in equity of a compan...read more