30+ Senior Executive - Finance Interview Questions and Answers

Provisions, contingent liabilities, and contingent assets are financial terms related to potential future events.

• Provisions are liabilities of uncertain timing or amount, such as warranty provisions or restructuring provisions.

• Contingent liabilities are potential liabilities that may arise depending on the outcome of a future event, such as pending lawsuits or guarantees on loans.

• Contingent assets are potential assets that may arise depending on the outcome of a future event,...read more

PPE refers to tangible assets used in production, cost is capitalized by including purchase price, installation costs, and necessary modifications, site restoration treatment involves returning a property to its original state.

• Property, Plant, and Equipment (PPE) are tangible assets used in production, such as buildings, machinery, and vehicles.

• The cost of PPE is capitalized by including the purchase price, installation costs, and any necessary modifications to make the asset...read more

Deferred revenue is revenue received in advance but not yet earned, unearned revenue is revenue received in advance and earned but not yet recognized, and unbilled revenue is revenue recognized but not yet billed.

• Deferred revenue is revenue received in advance but not yet earned, so it is recorded as a liability until it is earned.

• Unearned revenue is revenue received in advance and earned but not yet recognized, so it is recorded as a liability until it is recognized as reven...read more

India GDP is the total value of goods and services produced in India. Cost of equity is the return required by investors. Intrinsic value of shares is the true value of a company's stock.

• India GDP was $2.9 trillion in 2019

• Cost of equity is the return expected by investors for the risk they are taking

• Intrinsic value of shares is calculated using various methods such as discounted cash flow analysis and price-to-earnings ratio

• Intrinsic value represents the true value of a compa...read more

Under Ind AS 116, leases are recognized as right-of-use assets and lease liabilities on the balance sheet.

• Leases are classified as finance leases or operating leases based on specific criteria.

• For finance leases, the lessee recognizes a right-of-use asset and a lease liability on the balance sheet.

• For operating leases, the lessee recognizes a right-of-use asset and a corresponding liability on the balance sheet.

• Lease payments are apportioned between interest expense on the le...read more

Different sections of TDS include salary, interest on securities, dividends, etc. Rates vary based on the type of payment.

• Section 192: TDS on salary

• Section 194A: TDS on interest other than interest on securities

• Section 194B: TDS on winnings from lotteries, crossword puzzles, etc.

• Section 194C: TDS on payment to contractors and sub-contractors

• Section 194J: TDS on professional or technical services

• Rates vary from 1% to 30% depending on the section and type of payment

• For example,...read more

Balance sheet reconciliations involve comparing the balances in the general ledger to external sources to ensure accuracy.

• Start by gathering all relevant financial statements and supporting documents

• Compare the balances in the general ledger to external sources such as bank statements, invoices, and receipts

• Identify and investigate any discrepancies or differences

• Adjust the balances in the general ledger as needed to reconcile with external sources

• Document the reconciliation ...read more

GST stands for Goods and Services Tax, a tax levied on the supply of goods and services in India.

• GST is a comprehensive indirect tax that has replaced many indirect taxes in India.

• It is levied on the value-added to goods and services at each stage of the supply chain.

• GST on commission refers to the tax levied on the commission earned by a person or entity for providing services.

• The rate of GST on commission varies depending on the type of service provided.

• For example, the GST...read more

Left previous company due to lack of growth opportunities and seeking a more challenging role. Enjoyed collaborative working environment and supportive culture.

• Left previous company due to lack of growth opportunities

• Seeking a more challenging role

• Enjoyed collaborative working environment

• Appreciated supportive culture

Maintaining GRIR & SRIR involves regular monitoring, reconciling accounts, and addressing discrepancies promptly.

• Regularly monitor GRIR & SRIR accounts to identify discrepancies

• Reconcile accounts on a regular basis to ensure accuracy

• Address any discrepancies promptly to prevent further issues

• Ensure proper documentation and communication with relevant stakeholders

• Implement internal controls to prevent future discrepancies

Dealing with finance activities requires experience in financial analysis, budgeting, forecasting, and risk management.

• Financial analysis involves analyzing financial statements, identifying trends, and making recommendations for improvement.

• Budgeting involves creating and managing budgets, monitoring expenses, and ensuring compliance with financial regulations.

• Forecasting involves predicting future financial performance based on historical data and market trends.

• Risk managem...read more

GST filing is the process of submitting tax returns and related documents to the tax authorities.

• Register for a GST identification number (GSTIN)

• Maintain accurate records of all sales and purchases

• Prepare monthly or quarterly GST returns

• File the returns online through the GST portal

• Pay any tax liability or claim refunds as applicable

• Submit additional documents like invoices, credit notes, etc. if required

• Ensure compliance with GST rules and regulations

CAPM and DCF models are used in equity valuation.

• CAPM (Capital Asset Pricing Model) is used to determine the expected return on an investment based on its risk.

• DCF (Discounted Cash Flow) model is used to estimate the intrinsic value of a stock by discounting its future cash flows.

• CAPM considers the risk-free rate, market risk premium, and beta of the stock to calculate the expected return.

• DCF model calculates the present value of future cash flows by discounting them using an...read more

Processing miro and payment involves verifying invoices, recording transactions, and issuing payments.

• Verify the accuracy of the invoice details

• Record the transaction in the accounting system

• Obtain necessary approvals for payment

• Issue payment through the chosen payment method

• Maintain proper documentation for audit purposes

Current CTC is INR 15 lakhs per annum and expected CTC is INR 20 lakhs per annum.

• Current CTC: INR 15 lakhs per annum

• Expected CTC: INR 20 lakhs per annum

Bank reconciliation involves comparing the bank statement with the company's records to ensure accuracy.

• Obtain the bank statement and company records

• Compare the two to identify any discrepancies

• Adjust the company records to match the bank statement

• Prepare a reconciliation statement to document the process

• Examples of discrepancies include outstanding checks, deposits in transit, and bank errors

Capitalized assets are long-term assets that are recorded on a company's balance sheet and are depreciated over time.

• Capitalized assets are recorded as an asset on the balance sheet and are depreciated over their useful life.

• These assets are expected to provide benefits to the company for more than one year.

• Examples of capitalized assets include buildings, equipment, and vehicles.

• Capitalizing an asset allows a company to spread the cost of the asset over its useful life, rath...read more

Yes, I have knowledge about SAP

• I have worked with SAP in my previous roles

• I am familiar with SAP modules such as FI/CO, MM, and SD

• I have experience in implementing SAP solutions and managing SAP projects

• I am proficient in using SAP tools such as SAP BusinessObjects and SAP HANA

Requesting a loan from the bank via email

• Address the email to the appropriate department or loan officer

• Clearly state the purpose of the loan and the amount needed

• Provide details about your financial situation and ability to repay the loan

• Include any relevant documents or information to support your request

• Express gratitude for considering your application

Market beta is calculated by comparing the returns of a stock or portfolio to the returns of the overall market.

• Market beta measures the sensitivity of a stock or portfolio to market movements.

• It is calculated by regressing the returns of the stock or portfolio against the returns of a market index.

• The slope of the regression line represents the market beta.

• A beta of 1 indicates that the stock or portfolio moves in line with the market.

• A beta greater than 1 indicates higher v...read more

Private equity is a type of investment where funds are raised from investors to acquire ownership stakes in private companies.

• Private equity involves investing in privately-held companies that are not publicly traded on stock exchanges.

• Investors in private equity funds provide capital to the fund managers, who then use the funds to acquire ownership stakes in private companies.

• Private equity firms typically aim to improve the financial performance of the acquired companies an...read more

TDS (Tax Deducted at Source) is a procedure where tax is deducted by the payer at the time of making certain payments.

• TDS is applicable on various payments like salary, rent, interest, professional fees, etc.

• The payer deducts a certain percentage of the payment as tax and remits it to the government.

• The deducted tax is then reflected in the Form 26AS of the payee.

• The payee can claim credit for the TDS while filing their income tax return.

• Non-compliance with TDS provisions can...read more

Journal entry for acquisitions

• Debit the assets acquired account for the fair value of the assets acquired

• Credit the cash or liabilities assumed account for the fair value of the consideration given

• Record any goodwill or bargain purchase gain or loss

• Example: Debit Assets Acquired for $500,000, Credit Cash for $400,000 and Credit Liabilities Assumed for $100,000

I have over 10 years of experience in preparing financial statements for various organizations.

• Led a team in the preparation of annual financial statements in compliance with GAAP

• Reviewed and analyzed financial data to ensure accuracy and completeness

• Implemented new accounting standards and procedures to improve reporting efficiency

• Collaborated with auditors during the audit process to address any findings or discrepancies

Managing vendors involves establishing strong relationships, negotiating contracts, monitoring performance, and ensuring compliance.

• Establish clear communication channels with vendors

• Negotiate favorable terms and pricing

• Regularly review vendor performance and address any issues

• Ensure vendors comply with contract terms and regulations

• Consider implementing vendor management software for efficiency

Prepaid expenses are costs that have been paid in advance but have not yet been incurred.

• Prepaid expenses are considered assets on a company's balance sheet until they are used up or expire.

• Examples of prepaid expenses include prepaid rent, insurance premiums, and subscription services.

• As the prepaid expenses are used up, they are recorded as expenses on the income statement.

GST updates include changes in rates, return filing, and e-invoicing.

• GST Council has revised rates for various goods and services.

• New return filing system has been introduced to simplify the process.

• E-invoicing has been made mandatory for businesses with turnover above Rs. 50 crore.

• Late fee for non-filing of GSTR-3B has been waived for taxpayers with nil liability.

• GST revenue collection has been consistently above Rs. 1 lakh crore for the past few months.

Journal entry for purchase of equipment

• Debit the Equipment account for the cost of the equipment

• Credit the Cash account for the amount paid

• Include a brief description of the equipment in the journal entry

GST stands for Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.

• GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

• It has replaced multiple indirect taxes like VAT, service tax, excise duty, etc.

• GST has different slabs - 5%, 12%, 18%, and 28%, with some items being exempted or taxed at 0%.

• Input tax credit can be claimed on taxes paid on inputs used in the supply of goods...read more

TCS topic in invoice

• TCS (Tax Collected at Source) is a tax levied by the Indian government on certain transactions

• It is applicable on the sale of goods and services above a certain threshold

• The TCS amount is collected by the seller from the buyer and deposited with the government

• The TCS rate varies depending on the type of transaction and the parties involved

• TCS is mentioned on the invoice as a separate line item

SAP process refers to the various business processes managed using SAP software.

• SAP process encompasses all the business processes that are automated and managed using SAP software.

• Examples include procurement, inventory management, financial accounting, human resources management, etc.