Management Trainee Finance Interview Questions and Answers

OTC process in accountancy refers to the process of recording and managing transactions that occur outside of an exchange.

• OTC stands for Over-The-Counter

• It involves transactions that are not traded on a formal exchange

• OTC transactions are negotiated directly between two parties

• Examples include currency swaps, forward contracts, and options

• OTC process requires proper documentation and risk management

Standard cost is calculated by adding up the direct materials, direct labor, and overhead costs for a product.

• Determine the direct materials cost by multiplying the quantity of materials used by the cost per unit of material.

• Calculate the direct labor cost by multiplying the number of labor hours by the labor rate per hour.

• Compute the overhead cost by adding up all indirect costs, such as rent, utilities, and depreciation, and dividing by the number of units produced.

• Add the ...read more

OTC Cycle refers to the process of buying and selling securities outside of formal exchanges.

• OTC stands for Over-The-Counter

• OTC Cycle involves direct negotiations between buyers and sellers

• OTC securities are not listed on formal exchanges like NYSE or NASDAQ

• OTC securities include stocks, bonds, and derivatives

• OTC trading is less regulated and more risky than exchange trading

IRR is a financial metric used to calculate the potential profitability of an investment.

• IRR stands for Internal Rate of Return

• It is used to determine the rate at which the net present value of cash flows from an investment equals zero

• It takes into account the time value of money and the initial investment

• IRR is calculated using a trial and error method or through financial software

• Example: If an investment requires an initial outlay of $10,000 and generates cash flows of $3,...read more