10+ Financial Associate Interview Questions and Answers for Freshers

The first thing to consider while starting statutory audit is understanding the client's business and industry.

• Understand the client's business and industry

• Identify the key risks and controls

• Assess the materiality of the financial statements

• Plan the audit approach and procedures

• Consider any regulatory requirements or changes

• Review prior year's audit work

• Communicate with the client and their management team

Book closure process is the process of closing the register of shareholders to determine the list of shareholders eligible for dividends.

• Book closure process is done by companies to determine the list of shareholders eligible for dividends.

• During this process, the register of shareholders is closed for a specific period of time.

• Only those shareholders who are on the list at the end of the book closure period are eligible for dividends.

• Book closure dates are announced in advan...read more

Revenue recognition for cars sold with insurance and maintenance services.

• Revenue should be recognized separately for the car sale, insurance, and maintenance services.

• If the insurance and maintenance services are bundled with the car sale, revenue should be allocated based on their relative standalone selling prices.

• If the insurance and maintenance services are sold separately, revenue should be recognized when the services are provided.

• The revenue recognition method should ...read more

Financial activities involve managing money and investments, while commercial activities involve buying and selling goods and services.

• Financial activities include budgeting, investing, accounting, and financial reporting

• Commercial activities include marketing, sales, procurement, and supply chain management

• Examples of financial activities include managing a company's cash flow, investing in stocks or bonds, and creating financial statements

• Examples of commercial activities i...read more

Working capital is the difference between current assets and current liabilities on a balance sheet. Depreciation is the allocation of the cost of an asset over its useful life.

• Working capital is calculated as current assets minus current liabilities.

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

• Depreciation is the reduction in value of an asset over time, typically recorded as an expense on the incom...read more

To prepare financial models from scratch, follow these steps:

• Gather relevant financial data and information

• Identify the purpose and scope of the financial model

• Determine the key assumptions and variables

• Choose the appropriate modeling technique (e.g., discounted cash flow, sensitivity analysis)

• Build the model structure using spreadsheets or specialized software

• Input the data and formulas, ensuring accuracy and consistency

• Test and validate the model by comparing results with h...read more

GreyCampus is an online learning platform that offers professional certification courses and training programs.

• Offers courses in various fields such as project management, data science, cybersecurity, and digital marketing

• Provides live online classes and self-paced learning options

• Has partnerships with industry leaders like Microsoft, IBM, and Amazon Web Services

• Offers job placement assistance and career services to students

• Has a high success rate of students passing certific...read more

Departure from accounting standards refers to deviating from the established principles and guidelines in accounting practices.

• Departure from accounting standards can lead to inaccurate financial reporting.

• It can also result in legal and regulatory issues.

• Examples of departure from accounting standards include misrepresenting financial statements, failing to disclose important information, and manipulating financial data.

• Companies may depart from accounting standards to make ...read more

I'm sorry, I don't understand the question. Could you please rephrase it?

• Please clarify the question

• I'm not sure what you mean by 'locked sight'

• Could you provide more context or information?

Working capital is the difference between current assets and current liabilities.

• Working capital is the amount of money a company has available to fund its day-to-day operations.

• It is calculated by subtracting current liabilities from current assets.

• Current assets include cash, accounts receivable, and inventory, while current liabilities include accounts payable and short-term debt.

• A positive working capital indicates that a company has enough funds to cover its short-term o...read more

Emandate process is a paperless method of authorizing recurring payments from a bank account.

• Emandate process eliminates the need for physical mandates or standing instructions.

• It allows customers to authorize recurring payments through their bank's internet banking platform.

• Emandate process is commonly used for payment of bills, insurance premiums, loan repayments, etc.

• It is a secure and convenient way of making recurring payments.

• Examples of banks offering emandate services...read more

NACH (National Automated Clearing House) is an electronic payment system used for bulk transactions.

• NACH is used for various types of transactions such as salary payments, dividends, and loan repayments.

• It is a paperless and electronic mode of payment.

• NACH is operated by the National Payments Corporation of India (NPCI).

Accounts payable is the amount of money a company owes to its suppliers or vendors for goods or services purchased on credit.

• Accounts payable is a liability on the company's balance sheet.

• It represents the short-term debt that must be paid off within a specific period.

• Examples include invoices from suppliers for raw materials, utilities, or services.

• Managing accounts payable effectively is crucial for maintaining good relationships with suppliers and ensuring timely payments.

CARO 2020 is a set of auditing standards issued by the Institute of Chartered Accountants of India (ICAI) for companies in India.

• CARO 2020 applies to all companies except small companies and one-person companies.

• It requires auditors to report on various aspects of a company's operations, including related party transactions, internal financial controls, and compliance with laws and regulations.

• CARO 2020 also requires auditors to report on the adequacy and effectiveness of a c...read more

Analysis of business data involves examining financial and operational information to identify trends and make informed decisions.

• Collect and organize data from various sources

• Use statistical methods to identify patterns and trends

• Create visualizations to communicate findings

• Make recommendations based on analysis

• Continuously monitor and update analysis as new data becomes available

GRNI stands for Goods Received Not Invoiced, a financial term used to track goods that have been received by a company but not yet invoiced by the supplier.

• GRNI helps in tracking the liability of a company for goods received but not yet paid for.

• It is important for accurate financial reporting and inventory management.

• GRNI can indicate potential issues with the accounts payable process or discrepancies in inventory records.

• For example, if a company receives a shipment of good...read more