Finance Interview Questions and Answers |Financial Analyst |Accounting|Basic FAQ| #Finance

you you what is Finance financing means asking any financial institution bank Credit union

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance company or another person to lend you money that you promise to repay at some point in the future none;">Finance is a simple task of providing the necessary funds money required by the business of entities like companies firms individuals and others on the terms that are most favorable to achieve their economic objectives

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is concerned with cash it is so since every business transaction involves cash directly or indirectly none;">Finance is the study of money and Assets coupled with the management and use of those Assets to build wealth the activity of Finance is

the application of a set of techniques that individuals and organizations entities used to manage their financial affairs the Finance function encompasses a variety of

functions activities and processes it compasses financing functions budgetary functions risk and return management Cash Flow management cash management financial management risk and governance and many more associated functions features of

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance acquisition allocation and utilization of funds financial management channelizing funds maximization of shareholders wealth can you explain working Capital

working Capital is a common measure of a company’s Liquidity efficiency and overall health because it includes cash inventory accounts receivable accounts payable the portion of Debt due within one year and other short-term accounts a

company’s working Capital reflects the results of a host of company activities including inventory management Debt management Revenue collection and payments to suppliers explain working Capital turnover ratio it is also

referred to as net sales to working Capital it indicates the company’s effectiveness and using its work in Capital the working Capital turnover ratio is calculated as follows annual sales divided by the average amount of working

Capital during the same 12-month period can you explain solvency in Finance or business solvency is the degree to which the current Assets

of an individual or entity exceed the current Liabilities of that individual or entity it can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth this is best measured using the nem liquid balance

and LB formula in this formula solvency is calculated by adding cash and cash equivalents to short-term Investments then subtracting notes payable can you explain composite cost of Capital it is also known as weighted average cost of Capital which

is a measurable unit for it it also tells about the component costs of common stock preferred stock and Debt each of these components is given weightage on the basis of the Associated interest rate and other gains and losses with it it shows the cost of each additional

Capital as against the average cost of total Capital raised a high composite cost of Capital indicates that a company has high borrowing costs a low composite cost of Capital signifies low borrowing costs what is strategic

financial management strategic financial management mentioned two specific planning of the usage and management of a company’s financial resources to attain its objectives as a business concern and return maximum value to shareholders it involves precisely defining a company’s business

objectives identifying and quantifying its resources devising a plan for utilizing Finances and other resources to achieve its goals and establishing procedures for

collecting and analyzing data making financial decisions and tracking and analyzing variants between budgeted and actual results to identify problems and take appropriate corrective actions can you explain financial Accounting financial Accounting financial

accountancy is field of Accounting that treats money as a means of measuring economic performance instead of as a factor of production it encompasses the entire system of monitoring and control of money as it flows in and out of an organization as Assets and

Liabilities and Revenues and expenses financial accountancy is governed by both local and international Accounting standards generally accepted Accounting principles GAAP is the standard framework of guidelines for financial

Accounting used in any given jurisdiction it includes the standards conventions and rules that accountants follow in recording and summarizing it and the preparation of Financial Statements definition reporting of the financial position and performance of a firm

through Financial Statements issued to external users on a periodic basis can you explain financial management financial management is a final activity in any organization it is the process of planning organizing controlling and monitoring financial resources with a view to achieve

organizational goals and objectives it is an ideal practice for controlling the financial activities of an organization such as procurement of funds utilization of funds Accounting payments Risk Assessment and every other thing related to money can you explain

financial control financial control is a critically important activity to help the business ensure that the business is meeting its objectives financial control addresses questions such as our Assets being used efficiently are the business’s Assets secure do

management act in the best interest of shareholders and in accordance with business rules can you explain public Finance public

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is a part of study of economics it borders on the fields of government and political science public none;">Finance is the study of the financial activities of governments and public authorities public Finance describes

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance as related to sovereign states and sub-national entities like States provinces and related public entities for example municipal corporations or agencies it describes and

analyzes the expenditures of governments and the techniques used by governments to Finance these expend it is concerned with the identification of required expenditure of a

public sector entity and sources of Revenue and the Budgeting process public Finance analysis helps us to understand why certain services

have come to be supplied by government and why governments have come to rely on particular types of Taxes can you explain corporate Finance corporate

Finance is the task of providing the funds for a corporation’s activities by raising and administering funds corporate

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance aims at studying the funding of Assets from various sources like market general public or various financial institutions in this process corporate

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance aims to balance risk and Profitability while attempting to maximize an entity’s wealth and the value of its stock the importance of corporate

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is underlined by economic and social significance in terms of increase in public responsibility as the organization grows and wide distribution of the corporate ownership in the process separating ownership from

management can you explain personal Finance personal none;">Finance refers to the financial decisions which an individual must make to plan for his future these decisions include obtaining monetary resources planning application of Income Budgeting deciding on amounts and mode of saving and decisions

around spending monetary resources over time during this process one is expected to take into account various financial risks and future life events that may impact current Income levels or projected Incomes and must plan for them it possible for a company to have

positive Cash Flow but being serious financial trouble yes it is a company that is selling off inventory but delaying payables will show positive Cash Flow for a while even though they’re in trouble another example would be where company has strong

Revenues for the period but future forecasts show that Revenues will decline this would happen when a company hasn’t focused on making sure there were new prospects sales in the pipeline what is the difference between the current ratio and working

Capital the current ratio is the proportion or quotient or fraction of the amount of current Assets divided by the amount of current Liabilities working Capital is not a ratio proportion or quotient but rather it is an amount

working Capital that the amount remaining after current Liabilities are subtracted from current Assets is it possible for a company to show positive net Income and still go bankrupt absolutely a company that’s experiencing a

deterioration of working Capital that is decrease in accounts payable increase in accounts receivable can show positive net Income but be in financial trouble in the future it’s also possible to show positive net Income while in financial

trouble by manipulating Financial Statements for example Revenue recognition expense recognition etc can you explain financial modeling financial modeling is a Quantitative Analysis commonly used for either asset pricing or general corporate

Finance it is the task of building an abstract representation a model of a real-world financial situation this is a mathematical model of design to represent a simplified

version of the performance of a financial asset or Portfolio of a business project or any other investment financial modeling is a general term that means different things to different users the reference usually relates either to Accounting and corporate

Finance applications or to quantitative Finance

applications can you explain deferred tax liability and what is its purpose a deferred tax liability is just the opposite of a deferred tax asset the deferred tax liability occurs when a tax expense reported on the Income statement is not paid to the IRS during the same period it

is recognized it’s paid at a future date deferred tax Liabilities can result when there are differences in depreciation expense between book reporting GAAP and IRS reporting which lead to differences Income as reflected on a company’s

Income statement versus what’s reported to the IRS and which can you explain a Liquidity ratio a Liquidity ratio is an indicate whether company’s current Assets will be sufficient to meet the company’s obligations

when they become due the Liquidity ratios include the current ratio and the acid test or quick ratio the current ratio and quick ratio are also referred to as solvency ratios working Capital is an important indicator of Liquidity or solvency even

though it is not technically a ratio can you explain deferred tax Assets and what is its purpose a deferred tax asset as its name suggests is when a company pays more in Taxes to the IRS than they actually owe as shown as an expense on their Income

statement this is an asset because it can be used to offset future tax expense in the future deferred tax Assets can result from differences in Revenue recognition expense recognition and net operating losses explain how are the Balance Sheet and

Income statement connected the Balance Sheet reports a company’s Assets Liabilities and owner’s Equity as of the last instant of an Accounting year generally the amount of the

owner’s Equity will have changed from the previous Balance Sheet amount due to the company’s net Income the owner is additional Investments in the business the owners withdrawals of business Assets if

the owner did not invest or withdraw the change in owner’s Equity is likely to be the amount of net Income earned by the business the Revenues expenses gains and losses that make up the net Income are reported on the

company’s Income statement define in PV net present value NPV is the difference between the present value of cash inflows and the present value of cash outflows NPV is used in Capital Budgeting to analyze the Profitability of

a projected investment or project what are adjustments entries adjustment entries are Accounting journal entries that convert to company’s Accounting records to the accrual basis of Accounting can you explain goodwill in

Accounting goodwill is an intangible asset associated with a business combination goodwill is recorded when a company acquires per another company and the purchase price is greater than the combination or net of the fair value of the identifiable tangible and intangible

Assets acquired and the Liabilities that were assumed goodwill is an intangible asset and so is listed within the long-term Assets section of the acquirers Balance Sheet can you explain Cash Flow statement

Cash Flow statement CFS or statement of Cash Flows is a mandatory part of a company’s financial reports since 1987 records the amount of cash and cash equivalents entering and leaving a company the CFS allows investors to understand how company’s

operations are running where its money is coming from and how it is being spent here you will learn how the CFS is structured and how to use it as part of your analysis of a company how do you calculate the walk-walk weighted average cost of Capital is calculated by taking the

percentage of Debt to total Capital multiplied by the Debt interest rate multiplied by 1 minus the effective tax rate plus the percentage of Equity to Capital x the required return on Equity can

you explain cost Accounting cost Accounting is of utmost importance for the top management of any business cost Accounting is basically the next step to costing cost Accounting involves analyzing relevant costing data interpret it

and present various management problems to management the scope of cost Accounting involves preparation of various budgets for an organization determining standard costs based on technical estimates finding and comparing with actual costs ascertaining the reasons of buy variance

analysis etc can you explain cost accountancy it is basically a profession where you work for corporate houses to help them work efficiently in terms of financial matters a cost and management accountant would collect data and financial facts of the organization and would analyze them to help

reduce the cost to the company a cost reduction and maintain efficiency in operations going on is the main work and the area of expertise for any cost in the management accountant source wiki and Accounting coach and bold; color: #1a73e8; text-decoration: none;">Finance related subscribe to our Channel interview gig visit our website for more articles and interview questions and answers ww interview geek.com like share and comment don’t forget to click the subscribe button click the bow

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