30+ Senior Associate Analyst Interview Questions and Answers

Answers to questions related to finance and accounting.

• Interest received is shown in the operating activities section as inflow while interest paid is shown in the financing activities section as outflow.

• Journal entry for machine purchased by selling stocks: Debit Machinery account and Credit Stock account.

• NPV and IRR are both used to evaluate the profitability of an investment project. NPV calculates the present value of future cash flows while IRR calculates the rate of ret...read more

Factors bonds are fixed income securities representing debts, while NAV is the net asset value of a mutual fund. Derivative products include options which can be exercised at expiry.

• Factor bonds are fixed income securities issued by corporations or governments to raise capital.

• NAV (Net Asset Value) is the value of a mutual fund's assets minus its liabilities, divided by the number of shares outstanding.

• Derivative products, such as options, derive their value from an underlyin...read more

Basic shares refer to the total number of shares outstanding, while diluted shares include all potential shares that could be issued.

• Basic shares are the total number of shares outstanding, including common and preferred shares.

• Diluted shares include all potential shares that could be issued, such as stock options, convertible bonds, and warrants.

• Diluted shares are used to calculate earnings per share (EPS) to give a more accurate picture of a company's financial health.

• If a ...read more

The balance sheet, income statement, and cash flow statement are interconnected financial statements that provide a comprehensive view of a company's financial health.

• The balance sheet shows a company's assets, liabilities, and equity at a specific point in time, reflecting its financial position.

• The income statement reports revenues and expenses over a period, indicating profitability, which affects retained earnings on the balance sheet.

• The cash flow statement details cash ...read more

Treatment of dividend in Cash flow statement and journal entry for machine purchased by issuing shares.

• Dividends paid are deducted from net income in the cash flow statement under financing activities

• Dividends received are added to net income in the cash flow statement under investing activities

• Journal entry for machine purchased by issuing shares: Debit Machinery, Credit Share Capital

I am well informed about various analytical tools such as Excel, SQL, Tableau, and Python.

• Proficient in Excel for data analysis and visualization

• Skilled in SQL for data querying and manipulation

• Experienced in Tableau for creating interactive dashboards and reports

• Knowledgeable in Python for data cleaning and machine learning

• Familiar with statistical analysis tools such as SPSS and SAS

RCM healthcare focuses on optimizing revenue cycle management and medical billing processes for healthcare providers.

• RCM stands for Revenue Cycle Management, which encompasses the financial processes of healthcare providers.

• Medical billing is a key component of RCM, involving the submission and follow-up of claims with health insurance companies.

• Effective RCM can reduce claim denials and improve cash flow for healthcare organizations.

• For example, a hospital may implement RCM ...read more

Contract management involves the creation, execution, and analysis of contracts to maximize operational and financial performance.

• Involves drafting, negotiating, and finalizing contracts with stakeholders.

• Ensures compliance with legal and regulatory requirements, e.g., GDPR in data contracts.

• Includes monitoring contract performance and managing renewals or terminations.

• Utilizes contract management software for tracking and reporting, such as DocuSign or ContractWorks.

• Facilita...read more

Yes, I am comfortable working from the office as it fosters collaboration and enhances productivity.

• Collaboration: Working in the office allows for spontaneous discussions and brainstorming sessions with colleagues.

• Access to Resources: Being in the office provides immediate access to tools and resources that may not be available remotely.

• Team Dynamics: Face-to-face interactions help build stronger relationships and improve team dynamics.

• Structured Environment: The office envi...read more

Minority interest refers to the ownership stake in a company held by individuals or entities other than the controlling shareholders.

• Minority interest represents the portion of a subsidiary's equity that is not owned by the parent company.

• It is also known as non-controlling interest or outside equity.

• Minority interest is reported on the balance sheet as a separate line item.

• It reflects the share of profits or losses attributable to minority shareholders.

• It is calculated by mu...read more

Debit balance in AP refers to the amount owed by the company to its vendors or suppliers.

• Debit balance is the opposite of credit balance in accounts payable.

• It represents the amount that the company owes to its vendors or suppliers.

• Debit balance can occur due to delayed payments or overpayments.

• It is important to reconcile debit balances regularly to avoid any discrepancies.

• Examples of debit balance in AP include unpaid invoices, credit memos, and unapplied payments.

Demonstrations, environmental pollution, and social media are interconnected issues impacting society and public awareness.

• Demonstrations often raise awareness about environmental issues, e.g., climate strikes led by youth activists.

• Environmental pollution includes air, water, and soil contamination, affecting health and ecosystems, e.g., plastic pollution in oceans.

• Social media amplifies voices in demonstrations, allowing for real-time updates and mobilization, e.g., hashtag...read more

CTR stands for Click-Through Rate in Amazon ads, which measures the percentage of clicks on an ad compared to the number of times it was shown.

• CTR is calculated by dividing the number of clicks on an ad by the number of times the ad was shown, then multiplying by 100 to get a percentage.

• A high CTR indicates that the ad is relevant and engaging to the audience, while a low CTR may indicate that the ad needs to be optimized.

• For example, if an ad was shown 100 times and received...read more

Challenges in implementing eco-friendly vehicles in India include lack of infrastructure, high initial costs, and consumer awareness.

• Lack of charging stations for electric vehicles

• High initial costs of eco-friendly vehicles compared to traditional vehicles

• Limited consumer awareness and demand for eco-friendly vehicles

• Lack of government incentives and policies to promote eco-friendly vehicles

• Infrastructure challenges such as poor road conditions and traffic congestion

Strategies in hedge funds involve various techniques to maximize returns and manage risks.

• Long/short equity: Investing in undervalued stocks while shorting overvalued ones.

• Global macro: Making bets on macroeconomic trends across different markets.

• Event-driven: Capitalizing on corporate events like mergers, acquisitions, or bankruptcies.

• Quantitative: Using mathematical models to identify trading opportunities.

• Arbitrage: Exploiting price discrepancies between related assets or ...read more

The American travel market is more focused on domestic travel and road trips, while the European travel market emphasizes international travel and public transportation.

• American travel market is more focused on domestic travel and road trips

• European travel market emphasizes international travel and public transportation

• Americans tend to travel within their own country more often, visiting national parks, beaches, and cities like New York and Los Angeles

• Europeans often travel ...read more

I address my weaknesses through self-awareness, continuous learning, and seeking feedback to improve my skills and performance.

• Self-awareness: I regularly reflect on my performance to identify areas for improvement, such as time management.

• Continuous learning: I take online courses to enhance my skills, like mastering data analysis tools.

• Seeking feedback: I ask colleagues for constructive criticism to understand how I can better contribute to team projects.

• Setting goals: I cr...read more

Non PO invoices are not associated with a purchase order, while PO invoices are tied to a specific purchase order.

• Non PO invoices are typically used for one-time purchases or services.

• PO invoices are used for recurring purchases or services.

• Non PO invoices require additional approval processes.

• PO invoices are automatically approved if they match the purchase order.

• Examples of Non PO invoices include office supplies, travel expenses, and consulting fees.

• Examples of PO invoices...read more

The finance structure of a company refers to how the company's financial resources are organized and managed. The trial balance is a statement that lists all the general ledger accounts and their balances at a specific point in time.

• Finance structure of a company includes how funds are raised, invested, and managed.

• Trial balance is a statement that lists all general ledger accounts and their balances.

• Trial balance helps in ensuring that debits equal credits in the accounting ...read more

A revolving credit facility is a flexible loan option allowing borrowers to withdraw, repay, and borrow again up to a credit limit.

• It operates similarly to a credit card, where you can borrow funds as needed.

• Interest is charged only on the amount borrowed, not the total credit limit.

• Commonly used by businesses for managing cash flow and short-term financing.

• Examples include lines of credit from banks or credit unions.

• Borrowers can access funds repeatedly as long as they stay ...read more

Optimising campaigns involves analyzing data, testing different strategies, and making adjustments to improve performance.

• Analyze campaign data to identify trends and patterns

• Test different messaging, visuals, and targeting strategies

• Monitor key performance indicators (KPIs) such as click-through rates and conversion rates

• Make data-driven decisions to optimize campaign performance

• Adjust budgets and targeting based on performance data

• Utilize A/B testing to compare different ca...read more

CVR in Amazon ads stands for Conversion Rate, which is the percentage of ad clicks that result in a desired action, such as a purchase.

• CVR is calculated by dividing the number of conversions by the number of ad clicks and multiplying by 100.

• A high CVR indicates that the ad is effective in driving conversions.

• Monitoring CVR is important for optimizing ad campaigns and maximizing ROI.

The current ratio measures a company's ability to pay short-term obligations with its short-term assets.

• Formula: Current Ratio = Current Assets / Current Liabilities

• A ratio above 1 indicates more assets than liabilities, suggesting good short-term financial health.

• Example: If a company has $200,000 in current assets and $100,000 in current liabilities, the current ratio is 2.0.

• A current ratio below 1 may indicate potential liquidity issues.

• It is commonly used by investors and...read more

CPC stands for Cost Per Click, a metric used in online advertising to measure the cost of each click on an advertisement.

• CPC is calculated by dividing the total cost of a campaign by the number of clicks it receives.

• It is an important metric in online advertising as it helps advertisers understand the effectiveness of their campaigns.

• For example, if a campaign costs $100 and receives 50 clicks, the CPC would be $2 ($100 / 50 clicks).

US GAAP and IAS GAAP differ in principles, measurement, and reporting standards for financial statements.

• US GAAP is rule-based, while IAS GAAP (IFRS) is principle-based.

• Revenue recognition criteria differ; US GAAP has specific guidelines, whereas IFRS is more flexible.

• Under US GAAP, LIFO (Last In, First Out) is allowed for inventory, but IFRS prohibits it.

• US GAAP requires extraordinary items to be reported separately; IFRS does not recognize extraordinary items.

• Financial stat...read more

Lists are mutable while tuples are immutable in Python.

• Lists are denoted by square brackets [] while tuples are denoted by parentheses ().

• Elements in a list can be changed, added, or removed, while elements in a tuple cannot be changed once assigned.

• Lists are typically used for collections of similar items that need to be modified, while tuples are used for fixed collections of items.

• Example: list_example = [1, 2, 3] and tuple_example = (4, 5, 6)

Repetition of questions in interviews can indicate consistency in evaluation criteria.

• Consistency: Asking the same questions ensures that all candidates are evaluated on the same criteria.

• Assessment of Growth: It allows interviewers to assess how candidates have improved or changed their responses.

• Clarification: Repeating questions can help clarify previous answers that may have been vague or unclear.

• Comparison: It aids in comparing candidates' responses directly, making it e...read more