All Categories Question Bank Technical Companies Jobs Direct Tax All Indirect Tax Finance HR Financial Management Free Financial Due Diligence General Awareness FP&A Company Details Investment Banking Statutory Audit Internal Audit Treasury Credit Analyst Accounting Big 4 Jobs Finance Jobs If there is the factory and there is the fire in that factory and the machine was rendered un-useable and then we sold the machine for scrap, 100,000 was the original value and 50,000 was the written down value showing on the books and the scrap value is 10,000 and from insurance company we were able to recover 30,000, and we purchase another machine to replace the machine for 100,000. How to record the transaction? Suppose we issued equity to purchase a machinery, how will it be affecting cash flow statement for the entire year? How much dividend should we declare? Is there an alternative? Keys to effective controllership Difference between research and development? Controlling vs accounting Controller vs CFO What does a Financial Controller do? Difference between broad money and narrow money? What is a Controller in Finance? OR What is Finance Controller? What is the substantial period under Ins As for capitalizing borrowing cost w.r.t qualifying assets? What SLR, CRR, REPO, Reverse Repo and rates? IND AS 16 : What is the concept of Component accounting as per Ind AS 16 ? Why Component Accounting is used ? Ind AS 16 : What is the Deemed cost exemption as per Ind AS 16? Ind AS 40 : Definition of Investment property? IND AS 19 (Employee Benefit) ? Ind As 102 ( share based payment ) : how you will record share based payment in books, what other implications of shared based payment would be possible? How can a company inflate sales? What is window dressing? IPO AND BOOK BUILDING PROCESS Explain CSR in depth as per companies act. Effect of change in valuation of inventory from FIFO to weighted average in an inflationary environment? Difference between EBITDA and cash flow from operation? What all items are added in inventory cost? Suppose the machine is destroyed in fire but the insurance exists, so what should be the treatment for the same? What is related party as per various laws? – Companies Act, Ind AS, GST, Income Tax What is segment reporting criteria? How is a firm valued? How to calculate DCF What is DCF and why do we calculate DCF? What is payback period and discounted payback period? How to evaluate investment in the concept of capital budgeting? What is Capital budgeting? Give an example of a capital budgeting decision. Techniques of capital budgeting? What is securitization? WHAT IS THE DIFFERENCE BETWEEN NPV AND XNPV in Excel? What is loan syndication? What is minority interest? Explain NPV and IRR and how do you calculate the same? How will you calculate enterprise value? And how is it different from market capitalisation Slightly positive NPV question What is accretion and dilution? What is book value? What is cost of debt and cost of equity? Provision vs Contingent Liability Tell me some Liquidity and Coverage ratios? Suppose there are two companies, how to compare them based on profitability? Difference between solvency and liquidity? What are some Profitability and valuation ratios How to calculate FCFE and FCFF? Meaning and formula of WACC What is the difference between commercial and investment banking? GST law wrt M&A, Demergers, effect of ITC on such case. How would you advise the client on whether to go in for Litigation or settle the matter? What are some recent GST council decisions? Scope of Litigation Vs Advisory in GST in future Why e-way bill was introduced? How will you check authenticity of a particular e-way bill? What is the validity of a e-way bill? Once a way bill generated can it be revised? How to file appeal before GST appellate tribunal and what is the pre deposit amount? Can a manufacturer of goods avail composition scheme? What are the penal consequences if a person opts for the composition scheme in violation of the conditions? Explain Section 122 (Penalties) Can an ISD distribute the input tax credit to all suppliers? What is the consequence of not filing the return within the prescribed date? What do you understand by ISD? Whether the excess credit distributed could be recovered from ISD by the department? What would be input tax eligibility in cases where there is a change in the constitution of a registered person? 24. Sec 18 – ITC in special Circumstances. What are the types of Refund? Is refund available on Capital goods? What are Rule 42 and 36(4) in GST Difference between SCN and Deficiency Memo What do we provide at the time of refund application Whether it is advisable to file LUT for Zero rated supplies or pay tax on it? What is in inverted duty structure? How is refund taken in case of in inverted duty structure? Discuss about the RCM applicability in case of Govt Services. What are the 3 Schedules of GST? When to charge IGST, SGST, and CGST? Define Deemed Distinct Person What is the impact of scrapping of GST audit on professionals & litigations in future? What is the relevance of time of supply and last dates to issue invoices? What is the difference between zero rated, nil rated, exempt, wholly exempt, non taxable, non-supply? Discuss with the help of examples Identify Place of supply What are the due dates to file return? What is GSTR 2A & GSTR 2B? How would you reconcile ITC as per books and returns and last date of availing credit? Where is the power to levy GST obtained from? Is RCM applicable only on Services? Why there is a mechanism of RCM? What will be the GST Liability when a business is transferred? What about ITC available with you? Few cases on circumstances whether blocked credit rules are not applicable i.e. exceptions to blocked credit What is the procedure for Registration under GST? Cases when compulsory registration is required under GST. Latest amendments in GST relating to E-commerce operator, E-invoices, ITC rulings. What do you know about the GST applicability on notice period recovery? What are the key points to be kept in mind while analysing the financial position of company from its financial statements? What are the Segment criteria as per IND AS? What is the information you required from clients to file Income Tax returns and Form 3CA and 3CB? What are the things to be kept in mind while Auditor’s appointment and Rotation? What are the DTA creation criteria as per Ind AS and how they are different from AS? What are the disclosure requirements of Disclosure note 1 of financial statements? On what basis performance materiality is set and what are the criteria to set it or change it? If you want to change it what things are to be kept in mind? Why Equalization levy Introduced? Any important recent judgements you’ve read about? Recent Amendment in sec 147? What do you know about Faceless assessment? What are most recent changes in assessment procedure? Advance tax provision? Difference between DRP & CIT(A)? What do you know about internal transfer pricing? Why Equalization levy Introduced? What is DTAA? What is Advance Ruling? Difference between POEM and PE. What are the types of PE? Roll back provisions in case of merger and demerger? Difference b/w primary and secondary adjustment? What are the Methods for computing ALP along with examples? Difference between Realized and Unrealized gains? How do you ensure completeness and accuracy of financial statements? What do you mean by debt extinguishment? What do you understand by debt covenant? What is the need for Cash Flow Statements? What are the methods of Cash Flow statement and give at least one example of each activity? Difference between Basic EPS and Diluted EPS? Difference between virtual certainty and reasonable certainty? What do you mean by walkthroughs and control testing? What is MRL and why it is used and who takes it? If not received, then what will be the effect on audit opinion in audit report? If debtors’ confirmations are not received, then how would you deal with this kind of situation? If company is having Going concern issue, then as an auditor what are the requirements to bekept in mind while auditing and what will be the impact on audit opinion in audit report? How will you recognise revenue in case sale is made on FOB basis and in case of CIF basis? Explain. What is Operating/Financial Leverage? All Financial Ratios and profitability ratios. What is negative working capital? How to calculate free cash flows? What is the most important thing you would look for in annual report while performing due diligence? What is Deferred Revenue? What is its importance in Due diligence. How will you find Enterprise Value? What do you mean by EBITDA? What do you understand by Confidential Information Memorandum? What do you think is the most important aspect of due diligence? While performing Due diligence, what all information would you request? Define Target working Capital. What do you understand by QOA (Quality of asset)? What do you understand by QOE (Quality of earnings)? What is the most important deliverable for FDD? Why there is a need for conducting Financial due diligence? What do you understand by FDD? What is the importance of CIBIL & why it is checked? Differentiate between Tax planning & Tax evasion? Explain the concept of Marginal Relief and how it is calculated. Is there a situation in which there is no marginal relief? W.e.f from July 2021 Sec 194Q was introduced where buyer will have to deduct TDS on high value purchase from specific seller. Do you know why such amendment has been made? Discuss regarding the provisions of the section Have you heard of TDS to be deducted Business or Profession on issuing any advantage/perquisite to individual? If yes then why such introduction is made. Discuss on the applicability What ratios you will look for when giving credit? How does the treatment of financing fees differ from transaction fees in an LBO model? What is PIK interest? Name a few warning signs you would watch out for while evaluating a potential investment opportunity in LBO Which credit ratios would you consider when evaluating a borrower’s financial situation? What qualities make a company the perfect candidate for an LBO? What are the main LBO return-generating levers? What are the private equity firms’ investment exit strategies? What is the basic intuition underlying the usage of debt in an LBO? Walk me through the mechanics of building an LBO model for a financial buying. What is a leveraged buyout (LBO) for a PE firm? What is a term sheet? What is equity dilution? What is Pre-money / post- money valuation? What are the various stages of funding? What is the difference between Private Equity and Venture Capital? What is dry powder? Difference between strategic buyers and financial buyers? Who are the financial buyers? Some tips for preparing FP&A Interviews What Types of Businesses Use Financial Modeling? What Is a Hurdle Rate? Why is it important? How will you carry out a risk-based assessment? What do you mean by matching concept? What is the use and purpose of Excel Pivot Table, VLOOKUP, HLOOKUP, SUMIF, and Index Match? What is the key ratio for measuring profitability? If accounts receivable are going up, what could be the possible driver? What is the key ratio to consider while evaluating a new investment? How do MIS Reports Work? Give an example. What is an MIS Report? Mention few types of MIS Reports. How do you forecast Costs? How are the 3 financial statements linked together? How does an inventory write-down affect the Financial statements? What is Financial Modeling for FP&A? What are the different methods of evaluating a project or investment? What is a rolling forecast? How is it different from a traditional budget? Can you walk us through the P&L and Balance sheet of our company? What are the different ways to analyze data? How would you forecast the revenue of our company? Or What are the key drivers or metrics for revenue in our industry? How can you improve profits? Give an example. What are the different types of variance commentaries and explain the ones you have worked on What is Driver-Based Planning? What are the different types of FP&A reports? What is CAGR? Should CAGR be high or low? Variance analysis and Key factor of variance analysis? What is the difference between Quick Ratio and Current Ratio? What is Assets to Turnover Ratio? What is the role of Cash Flow? Distinguish between long term and short-term debt? What have you learnt from Financial Statement Analysis? What is working capital? How will you calculate it? What is Credit Risk? What is Distressed Securities? What is Credit Crunch? What is Loan to Value Ratio? What is net worth of a company? What is Debt to Income Ratio? What is Down Payment? What kinds of credit facilities are available to businesses? How do credit rating companies helps in credit analysis? Are banks targeting a specific debt-to-capital ratio? How would you decide whether to lend to a business? What does “interest coverage ratio” mean? What is DSCR? [Very important] What Is Underwriting? Explaining the Underwriting Process How is a Credit Analyst different from a Loan Officer? What are the important responsibilities of a Credit Analyst? What is credit Analysis? Explain Operational Risk ? Explain Credit Risk ? Explain Foreign Exchange Risk? Explain Interest Rate Risk? Explain Liquidity Risk? Explain Market Risk ? EXPLAIN THE RELATIONSHIP BETWEEN TREASURY AND ALM? EXPLAIN DURATION GAP ANALYSIS MODEL ? LIST THE BASIC ASSET LIABILITY MANAGEMENT (ALM) MODELS? EXPLAIN GAP ANALYSIS MODEL ? DISCUSS THE ROLE AND FUNCTIONS OF ASSET LIABLITY MANAGEMENT COMMITTEE ENUMERATE THE THREE REST PILLARS OF ALM PROCESS AS PER RBI GUIDELINES ? DEFINE ASSET LIABILITY MANAGEMENT (ALM)? WHAT IS THE TREATMENT OF BROKEN PERIOD INTEREST? NON PERFORMING INVESTMENT LIST THE POINTS TO BE NOTED WITH REGARD TO TRANSACTIONS THROUGH SGL ACCOUNT ? EXPLAIN SUBSIDUARY GENERAL LEDGER ACCOUNT OR SGL ? WHAT IS INVESTMENT FLUCTUATION RESERVE ? RBI GUIDELINES FOR VALUATION OF HELD FOR TRADING RBI GUIDELINES FOR VALUATION OF AVAILABLE FOR SALE RBI GUIDELINES FOR VALUATION OF HELD TO MATURITY EXPLAIN THE HEAD AVAILABLE FOR SALE AND HELD FOR TRADING ? EXPLAIN THE HEAD HELD TO MATURITY? EXPLAIN THE CLASSIFICATION OF INVESTMENT PORTFOLIO OF THE BANKS? EXPLAIN THE FUNCTIONS OF BACK OFFICE? EXPLIAN THE SCOPE OF BACK OFFICE? EXPLAIN THE FUNCTIONS OF MID-OFFICE ? EXPLAIN MID OFFICE ? EXPLAIN THE FUNCTIONS OF FRONT-OFFICE ? EXPLAIN THE SCOPE OF FRONT-OFFICE ? WHAT ARE THE FUNCTIONS HANDLED BY A BANK TREASURY? WHAT DO YOU MEAN BY TREASURY IN BANKS? Some Common Treasury Terms – Any of these may be asked in a Treasury Interview Deferred tax asset and liabilities What are the Golden Rules of Accounting? What is CFS? Components of CFS? What is the treatment of depreciation in CFS? Suppose there are two companies- Company A and Company B. What points will you check to ensure consolidation of both companies? Differences between Contingencies and Reserves Journal Entries and Differences between Bad Debts and Provision for doubtful debts Journal Entries for Dividend Journal Entries and Differences between Provision & Contingent Liability Journal Entries and Differences between Accrued Payable & Accrued Expenses As an Auditor how will you report fraud? What is EOM para? Does mention of this lead to qualification? Types of Audit Report? Difference between General Purpose Audit Report and Special Purpose Audit Report? What do you mean by Nature, Timing and Extent of Audit? What are the new requirements in CARO 2020 What is sampling? How do you choose samples? Sampling Methods? ‘Audit sampling’ refers to What are preventive and Detective Controls? Give an example. What are the objectives of the entity behind the imposition of controls? Benefits of Understanding of Internal Control? Limitations of Internal Control? What are the deficiencies of control (Specifically asking about Design Deficiency and Operating Effectiveness)? What is Internal Audit? What are controls? How are they different from Procedures? What are substantive Audit Procedures? Explain in brief what is Audit opinion and types of Audit Opinion? Difference between Vouching and Verification? What is the first step you take when you start Audit of a new client? What is the Risk of Material Misstatements? What would you do when you identify any material misstatement? Difference between Internal Audit and External Audit? What is included in Risk Assessment Procedures? What is IFCR (Internal Financial Control Over Reporting)? What is RAP (Risk Assessment Procedure)? Discuss SA 570 What is the reporting requirement of auditor regarding going concern What is the responsibilities of the auditor regarding going concern? What is Going Concern? What are the indicators of and whether company is going concern or not? What is reverse merger? What is a leveraged buyout (LBO)? What are the reasons for mergers and acquisition? What is horizontal merger and vertical merger? What is conglomerate merger? Distinguish between merger and acquisition? Regulators involved in the process of mergers and amalgamation? Difference between zero and incremental budget? What makes a “good” budget? Benefits and drawbacks of merger What are the types of budget What are Audit Assertions/Financial Statements Assertions/Balance sheet and Profit and Loss statement Assertions? What are the audit risk components? What is the difference between ROI vs ROE vs ROCE. We are setting up a factory of scooters, the scooters in this factory are sold for ₹1 lakh. A Maintenance Contract for five years is also given for ₹50,000. If the general annual maintenance is paid at the time of purchase of scooters, a sum total of ₹120,000 is charged from the customer. How to recognize revenue? What is the 5 step model of recognizing Revenue as per IND AS 115? What is systematic risk and unsystematic risk? What is required rate of return? What is risk free rate? What is levered and unlevered beta? What is Beta and Alpha? How to calculate beta? Meaning of BETA and can it be negative? Which is cheaper debt or equity? Explain CAPM? What are the hallmarks of a good FP&A financial model? What is the difference between a private equity and venture capital? What is financial modelling? What credit measures do banks often look at? / What typical credit analysis ratios are there? What is working capital and what is net working capital? What is asset acquisition? Suppose you see goodwill in the balance sheet. What does it mean? Is too much goodwill a bad thing? Difference between operating lease and financial lease? What is goodwill? How to calculate goodwill? What is an Ideal leverage ratio? How do you model working capital for a company? Components of cash flows Statement What is Interest Coverage Ratio Major difference between Ind As 116 vs As 17.( Just mention 2/3 points)? Explain leverage ratio and solvency ratio What are the 4 Cs of the Credit analyst? Major changes in Ind AS 116 What is accumulated depreciation? What are free cash flows? What is Dividend Discount Model? What is sin tax Difference between Depreciation, Depletion and Amortization Mention the ERP you have used in budgeting and forecasting? Explain valuation and its techniques How do you make a budget/forecast or what is the basis you consider while making a budget or forecast? Distinguish between Budgeting and Forecasting?
If there is the factory and there is the fire in that factory and the machine was rendered un-useable and then we sold the machine for scrap, 100,000 was the original value and 50,000 was the written down value showing on the books and the scrap value is 10,000 and from insurance company we were able to recover 30,000, and we purchase another machine to replace the machine for 100,000. How to record the transaction?
Suppose we issued equity to purchase a machinery, how will it be affecting cash flow statement for the entire year?
IND AS 16 : What is the concept of Component accounting as per Ind AS 16 ? Why Component Accounting is used ?
Ind As 102 ( share based payment ) : how you will record share based payment in books, what other implications of shared based payment would be possible?
Effect of change in valuation of inventory from FIFO to weighted average in an inflationary environment?
Suppose the machine is destroyed in fire but the insurance exists, so what should be the treatment for the same?
Why e-way bill was introduced? How will you check authenticity of a particular e-way bill? What is the validity of a e-way bill? Once a way bill generated can it be revised?
Can a manufacturer of goods avail composition scheme? What are the penal consequences if a person opts for the composition scheme in violation of the conditions?
What do you understand by ISD? Whether the excess credit distributed could be recovered from ISD by the department?
What would be input tax eligibility in cases where there is a change in the constitution of a registered person?
What is the difference between zero rated, nil rated, exempt, wholly exempt, non taxable, non-supply? Discuss with the help of examples
What is GSTR 2A & GSTR 2B? How would you reconcile ITC as per books and returns and last date of availing credit?
Few cases on circumstances whether blocked credit rules are not applicable i.e. exceptions to blocked credit
What is the procedure for Registration under GST? Cases when compulsory registration is required under GST.
What are the key points to be kept in mind while analysing the financial position of company from its financial statements?
On what basis performance materiality is set and what are the criteria to set it or change it? If you want to change it what things are to be kept in mind?
What is MRL and why it is used and who takes it? If not received, then what will be the effect on audit opinion in audit report?
If company is having Going concern issue, then as an auditor what are the requirements to bekept in mind while auditing and what will be the impact on audit opinion in audit report?
Explain the concept of Marginal Relief and how it is calculated. Is there a situation in which there is no marginal relief?
W.e.f from July 2021 Sec 194Q was introduced where buyer will have to deduct TDS on high value purchase from specific seller. Do you know why such amendment has been made? Discuss regarding the provisions of the section
Have you heard of TDS to be deducted Business or Profession on issuing any advantage/perquisite to individual? If yes then why such introduction is made. Discuss on the applicability
Name a few warning signs you would watch out for while evaluating a potential investment opportunity in LBO
How would you forecast the revenue of our company? Or What are the key drivers or metrics for revenue in our industry?
Suppose there are two companies- Company A and Company B. What points will you check to ensure consolidation of both companies?
Types of Audit Report? Difference between General Purpose Audit Report and Special Purpose Audit Report?
What are the objectives of the entity behind the imposition of controls? Benefits of Understanding of Internal Control? Limitations of Internal Control?
What are the deficiencies of control (Specifically asking about Design Deficiency and Operating Effectiveness)?
What is the Risk of Material Misstatements? What would you do when you identify any material misstatement?
What are Audit Assertions/Financial Statements Assertions/Balance sheet and Profit and Loss statement Assertions?
We are setting up a factory of scooters, the scooters in this factory are sold for ₹1 lakh. A Maintenance Contract for five years is also given for ₹50,000. If the general annual maintenance is paid at the time of purchase of scooters, a sum total of ₹120,000 is charged from the customer. How to recognize revenue?
How do you make a budget/forecast or what is the basis you consider while making a budget or forecast?
