60+ Research Analyst Interview Questions and Answers for Freshers

Assets are resources owned by an individual or organization, while liabilities are debts or obligations owed to others.

• Assets can include cash, property, investments, and inventory.

• Liabilities can include loans, mortgages, and unpaid bills.

• Assets are typically viewed as positive, while liabilities are viewed as negative.

• The difference between assets and liabilities is known as net worth or equity.

Yes, I am familiar with LinkedIn and know how to check prospects on the platform.

• I understand the importance of LinkedIn in professional networking and research.

• To check a prospect, I would search for their name or company in the search bar and review their profile for relevant information.

• I would also look for mutual connections or groups to gain additional insights.

• I am aware of LinkedIn's premium features for more advanced prospecting and lead generation.

• For example, I hav...read more

Factset is a financial data and software company that provides research, analytics, and data solutions to investment professionals.

• Factset offers a wide range of financial data and analytics tools

• It provides real-time market data, news, and research reports

• Factset's software platforms help investment professionals in portfolio management, risk analysis, and quantitative research

• The company serves clients in the financial industry, including asset managers, investment banks, a...read more

Accumulated depreciation is the total amount of depreciation expense that has been recorded for an asset over its useful life.

• It is a contra-asset account that reduces the value of an asset on the balance sheet.

• It is calculated by subtracting the asset's salvage value from its original cost and dividing the result by the asset's useful life.

• It represents the total amount of wear and tear or obsolescence that an asset has undergone over time.

• It is important for calculating the...read more

If USD1 equals INR1, it will impact the Indian economy by affecting exports, imports, inflation, and foreign investments.

• Exports will become expensive, making Indian goods less competitive in the global market.

• Imports will become cheaper, leading to increased demand for foreign goods.

• Inflation may rise due to increased demand for foreign goods and higher import costs for raw materials.

• Foreign investments may decrease as the Indian economy becomes less attractive due to the we...read more

Depreciation reduces net income and increases cash flow.

• Depreciation is a non-cash expense that reduces net income.

• Since it is a non-cash expense, it is added back to net income in the cash flow statement.

• This results in an increase in cash flow from operating activities.

• For example, if a company has a net income of $100,000 and depreciation expense of $20,000, the cash flow from operating activities would be $120,000.

• Depreciation also affects cash flow from investing activit...read more

Marginal costs refer to the cost of producing one additional unit of a product, while additional costs refer to any extra costs incurred beyond the initial cost.

• Marginal costs are the cost of producing one more unit of a product, while additional costs are any extra costs incurred beyond the initial cost.

• Marginal costs are variable costs that increase or decrease with the production of one more unit, while additional costs can be fixed or variable costs.

• For example, if a comp...read more

Accrued expenses are liabilities that have been incurred but not yet paid for.

• Accrued expenses are recorded on the balance sheet as a current liability.

• They represent expenses that have been recognized but not yet paid for.

• Examples of accrued expenses include salaries payable, interest payable, and utilities payable.

• Accrued expenses are typically recorded through adjusting entries at the end of an accounting period.

If cigarettes are banned by the government in India, it would have significant social, economic, and health implications.

• Reduction in smoking-related health issues and diseases

• Decrease in tobacco-related deaths

• Positive impact on public health and healthcare costs

• Potential increase in illicit tobacco trade

• Loss of revenue for the government

• Impact on tobacco farmers and related industries

• Changes in social behavior and cultural practices

Activities in Cash Flow Statement include operating, investing, and financing activities.

• Operating activities involve cash flows from day-to-day business operations, such as sales and expenses.

• Investing activities include cash flows from buying or selling long-term assets, like property or equipment.

• Financing activities involve cash flows related to raising or repaying capital, such as issuing stocks or paying dividends.

• Examples of operating activities: cash received from cus...read more

An equity stock holder is an individual or entity that owns shares of a company's stock.

• Equity stock holders have ownership in a company and are entitled to a portion of its profits.

• They can vote on important company decisions and attend shareholder meetings.

• Examples of equity stock holders include individual investors, mutual funds, and pension funds.

The golden rules of accounting are basic principles that guide the recording of financial transactions.

• The first golden rule is the Personal Account rule, which states that all personal accounts are debited for the receiver and credited for the giver.

• The second golden rule is the Real Account rule, which states that all real accounts are debited for what comes in and credited for what goes out.

• The third golden rule is the Nominal Account rule, which states that all nominal ac...read more

5G offers faster speeds, lower latency, increased capacity, improved reliability, and support for more devices.

• Faster speeds compared to 4G, enabling quicker downloads and smoother streaming

• Lower latency for real-time communication and better gaming experiences

• Increased capacity to handle more connected devices in crowded areas

• Improved reliability for mission-critical applications like autonomous vehicles

• Support for emerging technologies like IoT and virtual reality

Financial statements are formal records of the financial activities and position of a business, person, or entity.

• 1. Balance Sheet: Shows assets, liabilities, and equity at a specific point in time. Example: A company with $500,000 in assets and $300,000 in liabilities.

• 2. Income Statement: Reports revenue, expenses, and profit over a period. Example: A company earns $1 million in revenue and incurs $800,000 in expenses, resulting in a $200,000 profit.

• 3. Cash Flow Statement: T...read more

Direct expenses are related to production while indirect expenses are not directly related to production.

• Direct expenses are incurred in the production process and can be easily traced to a product or service.

• Indirect expenses are not directly related to production and cannot be easily traced to a product or service.

• Direct expenses are variable costs while indirect expenses are fixed costs.

• Examples of direct expenses include raw materials, labor costs, and manufacturing overh...read more

Retained earnings are the accumulated profits of a company that are reinvested into the business instead of being distributed to shareholders.

• Retained earnings represent the portion of net income that is retained by the company after dividends are paid out to shareholders.

• They are reported on the balance sheet under the equity section.

• Retained earnings can be used for various purposes such as funding growth, paying off debt, or acquiring assets.

• They can be positive or negativ...read more

GAAP stands for Generally Accepted Accounting Principles. It is a set of accounting standards and principles used in the preparation of financial statements.

• GAAP is a set of guidelines and principles that govern the accounting and financial reporting practices of companies.

• The main goal of GAAP is to ensure consistency, comparability, and transparency in financial reporting.

• GAAP provides a framework for recording, summarizing, and presenting financial information.

• Some of the ...read more

IFRS stands for International Financial Reporting Standards.

• IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB).

• It provides a common framework for financial reporting across different countries.

• IFRS aims to enhance transparency, comparability, and reliability of financial statements.

• It is used by companies to prepare their financial statements in a consistent and standardized manner.

• IFRS covers various aspects of financial re...read more

Yes, I have utilized automated tools like BrandShield and Red Points to track counterfeit goods.

• Utilized BrandShield to monitor online marketplaces for counterfeit products

• Utilized Red Points to detect and remove counterfeit listings

• Generated reports on counterfeit activity using automated tools

We can fastly play the game by practicing regularly and developing strategic thinking. Cleverness comes from analyzing situations quickly and making smart decisions.

• Practice regularly to improve reaction time and familiarity with the game

• Develop strategic thinking to anticipate opponents' moves and plan ahead

• Analyze situations quickly to make informed decisions

• Adapt to changing circumstances and think outside the box

• Utilize resources efficiently to gain an advantage

Companies want to incorporate sustainability to improve their reputation, reduce costs, comply with regulations, and attract investors.

• Improves reputation and brand image

• Reduces costs through energy efficiency and waste reduction

• Complies with regulations and avoids fines

• Attracts socially responsible investors

• Mitigates risks associated with climate change and resource scarcity

The gross profit formula calculates the profit made after deducting the cost of goods sold from the total revenue.

• Gross profit = Total revenue - Cost of goods sold

• Total revenue includes all sales revenue generated by the company

• Cost of goods sold includes the direct costs associated with producing or purchasing the goods sold

• Gross profit is an indicator of a company's profitability before considering other expenses

• Example: If a company has total revenue of $100,000 and cost o...read more

Goodwill can be calculated using the acquisition method or the impairment method.

• Acquisition method involves subtracting the fair value of net assets acquired from the purchase price.

• Impairment method involves comparing the carrying value of goodwill to its implied fair value.

• Goodwill is only recognized in a business combination.

• Goodwill is tested for impairment annually or when there is a triggering event.

• Goodwill is not amortized but is subject to impairment testing.

EPS stands for Earnings Per Share, which is the portion of a company's profit allocated to each outstanding share of common stock.

• EPS is a financial metric used to evaluate a company's profitability.

• It is calculated by dividing the company's net income by the number of outstanding shares.

• EPS can be used to compare the profitability of different companies or to track a company's performance over time.

• A higher EPS indicates that a company is more profitable and may be a good in...read more

Common threats to brand integrity include counterfeit products, negative publicity, data breaches, and lack of consistency in messaging.

• Counterfeit products can damage a brand's reputation and lead to loss of revenue.

• Negative publicity, such as scandals or controversies, can tarnish a brand's image and erode consumer trust.

• Data breaches can compromise customer information and result in a loss of trust and credibility.

• Lack of consistency in messaging across different platforms...read more

I am familiar with various research methods including qualitative, quantitative, experimental, and survey research.

• Qualitative research involves collecting non-numerical data such as interviews, observations, and focus groups.

• Quantitative research focuses on numerical data and statistical analysis to draw conclusions.

• Experimental research involves manipulating variables to test cause-and-effect relationships.

• Survey research uses questionnaires or interviews to gather data fro...read more

A rice production company can be valued using various methods such as discounted cash flow, comparable company analysis, and precedent transactions.

• Consider the company's historical financial performance and future growth prospects

• Evaluate the company's assets, liabilities, and cash flow

• Compare the company to similar publicly traded rice production companies

• Look at recent transactions in the rice production industry to determine a fair valuation

Bond interest rate is called yield.

• The bond interest rate is commonly referred to as yield.

• Yield represents the return on investment for bondholders.

• It is expressed as a percentage of the bond's face value.

• Yield can be fixed or variable depending on the type of bond.

• For example, a 5% yield means the bond pays 5% interest annually.

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Derivatives can be used for hedging or speculation.

• Examples of derivatives include futures, options, and swaps.

• Derivatives can be traded on exchanges or over-the-counter.

• Derivatives can be used to manage risk or to take on additional risk for potential profit.

• Derivatives can be complex and require specialized knowledge to understand and trade.

Ball swings due to the combination of air pressure and spin.

• Air pressure difference on either side of the ball creates a force that makes it swing.

• Spin on the ball creates a Magnus effect, which causes it to move in a curved path.

• The condition of the ball, such as its roughness, can also affect its swing.

• Swing bowling is a common tactic in cricket, used to deceive the batsman and take wickets.

The question is unclear and seems to be a combination of multiple questions.

• It would be helpful to clarify which question the interviewer wants you to answer.

• For hobbies, mention a few that you enjoy and how they help you relax or learn new skills.

• For family members, briefly mention your immediate family and any close relationships you have with extended family.

• For office rules, discuss the importance of following company policies and procedures to maintain a professional and...read more

ESG stands for Environmental, Social, and Governance. The pillars of ESG are the three key factors used to measure the sustainability and ethical impact of an investment in a company.

• Environmental: Focuses on a company's impact on the environment, such as carbon emissions, waste management, and resource conservation.

• Social: Considers how a company manages relationships with employees, suppliers, customers, and the communities in which it operates. This includes diversity and ...read more

Preferred stock is a type of stock that pays fixed dividends, while debenture is a type of debt instrument with no collateral.

• Preferred stock represents ownership in a company, but usually does not come with voting rights.

• Preferred stockholders receive fixed dividends before common stockholders.

• Debentures are unsecured debt instruments issued by corporations or governments.

• Debenture holders are considered creditors of the company and have a higher claim on assets in case of b...read more

I manage ethical dilemmas by carefully considering all perspectives, seeking advice from colleagues, and following established ethical guidelines.

• Consider all perspectives involved in the dilemma

• Seek advice from colleagues or mentors

• Refer to established ethical guidelines or codes of conduct

• Consult with a supervisor or ethics committee if necessary

The stages of drug approval include preclinical research, clinical trials, FDA review, and post-market surveillance.

• Preclinical research involves testing the drug on cells and animals to determine safety and efficacy.

• Clinical trials are conducted in phases to test the drug on humans for safety and effectiveness.

• FDA review involves the regulatory agency evaluating the data from clinical trials to determine if the drug is safe and effective for use.

• Post-market surveillance invo...read more

Secondary research involves analyzing existing data and information collected by others for a different purpose.

• Secondary research involves using sources such as books, articles, reports, and websites to gather information.

• It is cost-effective and time-saving compared to primary research.

• Examples include analyzing census data, market research reports, and academic studies.

• Secondary research helps in gaining insights, validating findings, and identifying trends in a particular...read more

IPO stands for Initial Public Offering. It is the first time a company's stock is offered to the public.

• IPO is a way for companies to raise capital by selling shares of their stock to the public

• It is a process where a private company becomes a public company

• The company hires an investment bank to underwrite the IPO and help set the price of the shares

• Examples of successful IPOs include Facebook, Alibaba, and Uber

mm-Wave technology has limitations in terms of range and penetration through obstacles.

• mm-Wave signals have shorter range compared to lower frequency signals

• mm-Wave signals have difficulty penetrating through obstacles like walls and buildings

• mm-Wave technology is more susceptible to interference from weather conditions

• mm-Wave hardware is more expensive compared to lower frequency alternatives

Depreciation methods include straight-line, declining balance, and sum-of-the-years' digits.

• Straight-line method charges an equal amount of depreciation each year.

• Declining balance method charges a higher percentage of depreciation in the early years of an asset's life.

• Sum-of-the-years' digits method charges more depreciation in the early years and less in the later years.

• Other methods include units of production and MACRS.

• Depreciation methods are used to allocate the cost of...read more

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities.

• Mutual funds provide diversification, allowing investors to spread their risk across multiple securities.

• They are managed by professional fund managers who make investment decisions on behalf of the investors.

• Mutual funds offer liquidity, allowing investors to buy or sell their shares at the end of each trading day.

• They provide access to a wide range...read more

Equity represents ownership in a company, while mutual funds pool money from multiple investors to invest in a diversified portfolio of securities.

• Equity is a type of security that represents ownership in a company, giving shareholders voting rights and a share of profits.

• Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

• Equity investments carry higher risk but also offer the...read more

A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

• Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.

• Investors buy shares in the mutual fund and the value of their investment is determined by the performance of the underlying securities in the portfolio.

• Mutual funds offer investors the benefits of diversif...read more

Potato consumption varies across states in India.

• Potatoes are a staple food in many Indian households.

• States like West Bengal, Uttar Pradesh, and Bihar consume the most potatoes.

• In South India, rice is the primary staple food, so potato consumption is relatively lower.

• Potatoes are also used in various dishes like aloo gobi, aloo paratha, and samosas.

• Potato chips and French fries are popular snacks across the country.

Organic farming is a method of agriculture that relies on natural processes and avoids the use of synthetic chemicals and genetically modified organisms.

• Organic farming focuses on maintaining soil health and biodiversity.

• It uses techniques like crop rotation, composting, and biological pest control.

• Organic farmers avoid the use of synthetic fertilizers, pesticides, and antibiotics.

• Certification ensures that organic products meet specific standards.

• Examples of organic farming ...read more

TCFD, GRI, and SASB are frameworks used for reporting on climate-related financial disclosures, sustainability, and material ESG factors.

• TCFD stands for Task Force on Climate-related Financial Disclosures, providing recommendations for voluntary climate-related financial disclosures by companies.

• GRI refers to Global Reporting Initiative, offering a framework for sustainability reporting to help organizations understand and communicate their impacts on issues like climate chan...read more

B2B stands for business-to-business, referring to transactions between businesses rather than between a business and individual consumers.

• B2B involves selling products or services to other businesses rather than to consumers.

• Examples of B2B companies include manufacturers selling to wholesalers, or software companies selling to other businesses.

• B2B transactions often involve larger quantities and higher value compared to B2C transactions.

• B2B marketing strategies focus on buil...read more

Monoclonal antibodies are laboratory-produced molecules designed to mimic the immune system's ability to fight off harmful pathogens.

• Monoclonal antibodies are made by cloning a unique white blood cell to produce large quantities of identical antibodies.

• They are used in various medical treatments, such as cancer therapy, autoimmune diseases, and infectious diseases.

• Examples include drugs like trastuzumab (Herceptin) for breast cancer and infliximab (Remicade) for autoimmune di...read more