Finance Interview Questions

 What are accounting Principles? Infosys

 what is finance Brigade
 what is the difference between P & L a\c and income & expenditure statement
Genpact
 What are the important question which some ask at the time of interview of a
finance company ICICI Types of Lease? Karvy
 what is diff b/w bonds and debenture  
 what is minority interest Capital-IQ
 Giving a Loan and Credit Provision. What are the differences and the similarities of
the two?
 What are fixed Assets and current Assets?  
 What are the benefits of trade liberalization? Describe  
 WHAT IS BOTTOMLINE AND WHAT IS TOPLINE? Future-Group
 What is BEP? How is it calculated? Thomson
 What is accounting? India-Info line
 What is GP?
 What is free float market capitalisation?
 Now days which type of fund is best in share market? India-Info line
 what do you mean by forex reserve  
 Why do you want do your specialization in finance? Wipro
 Who is the first president of RBI ?
 Stand form of PAT ?(profit after tax )
 What is Call Option?  
 Which debt instrument is preferred by the company for financing?  
 Which government body calculates GDP and inflation of India? United-Bank-of-
India
 What are the key steps involved in formulating treasury policy of a firm? TCS
 What is the difference between ADR & GDR?  
 What is the meaning of portfolio management?
 what comes under portfolio management  
 Can anyone supply FI-CO material in SAP? IBM
 What is amortisation?  
 What is authorized Capital?
 Explain, what are basel-i and basel-ii? JPMorgan-Chase
 What you will find in Balance Sheet?  
 what is the difference between stock & shares, Genpact
 what is another name of NYSE
 Explain how ratios may be used to assess the profitability and liquidity of a business
 What is the difference between prepaid expenses and preliminary expenses? ICAI
 Explain the Qualities of a smart investor?  
 What is finance?  

1
 What is an auction? Why does it occur Bank-of-Bahrain-and-Kuwait
 what is derivatives
 What is mid Cap?
 What are the criticisms against his profit maximisation objective of a business?
 What is sensex and what is nifty?
 What is the higher IRR in case of Fixed or reducing interest rate?
 What is Beta?  
 Explain how ratios may be used to assess the profitability and liquidity of a business
 What is diluted EPS? In finance what is the use of diluted EPS? Capital-IQ
 How to predict capital adequacy ratio of icici 13.4% and sbi 11%...which one is
better and how? Reliance
 What is the functionality of Stock exchange Ing-Vysya-Bank
 Briefly explain about Ledger Postings?  
 What is convertible debenture?
 What is its effect on EPS? Capital-IQ
 Is it true that Indian currency has to be converted in foreign exchange before going
to other countries?
 What is a swap? Capital-IQ
 What is dividend?
 On which basis sensex and nifty will be measured and also how the inflation rate
measured
 What is the problem that is being faced by fixed maturity plans today?
 What is the concept of finance accounting? Axis-Bank
 What is the meaning of LIQUIDITY?
 What are the shortcut keys of operating share terminal? HDFC
 What is the concept of finance accounting? Axis-Bank
 How trading goes in stock markets. i.e. in bse how we are knowing that a company’s
share is increasing or decreasing?
 What is main courses that price of the share goes up and down in daily transaction?
 What is the internal rate of return (IRR) of eurekaforbes? Eureka-Forbes
 What is Open-Interest and how can we calculate it?????
 Now a day which type of fund is best in share market? India-Info line
 What is Proposal/Offer? Explain the essential of a acceptance.
 How does rupee strengthen when the Reserve Bank of India sells dollars in the
market????
 What is Shares Split? ABC-Telecom
 Can anyone supply FI-CO material in SAP. IBM
 What do you mean by favourable balance of trade BPO
 What is stock?
 Define leverage? Explain its types, relative significance and their features? Infosys
 What are the key steps involved in formulating treasury policy of a firm? TCS
 Is bank interest included in the fund floe statement?
 What is the meaning of circuited in share market? Explain with example?
 which government body calculates gdp and inflation of India? United-Bank-of-India

2
 What is financial management?  
 What is the function of Bangalore stock exchange?  
 what is the difference between stock & shares, Genpact
 What are nationalised banks? Karnataka-Bank
 What is Bear market?
 What is Inventory? Capital-IQ
 What is goodwill? How do u calculate it? Capital-IQ
 How to Measure cost of capital? explain the measures of cost of capital
 What are the components or companies of BSE - Bombay Stock Exchange Sensex?
CitiGroup
 Types of Lease? HDFC
 “Corporate Social Responsibility is outside the scope of Business houses”. Explain
why you agree or disagree with this statement
 What’s Dollex 30? Ernst-Young
 What is the difference between prepaid expenses and preliminary expenses? ICAI
 What is the difference between Long term Loan and Debt?
 What is the difference between SENSEX and NIFTY????? Infosys4
 what is the portfolio
 In stock market i find the term futures and options ? what was the meaning of that
sensex futures and options Genpact
 What is Trial Balance? Deloitte
 What Are Hedge Funds? Capital-IQ
 What are valuation accounts?
 EBIT stands for? Capital-IQ 
 What is fixed cost? Capital-IQ
 In Banking industry difference between interest income and interest expenses is
called as ............. Capital-IQ 
 What is the effect of CRR hike on market? Capital-IQ
 How cash enters in market? Capital-IQ
 When will establish first stock exchange? SEBI
 What is reverse repo rate?
 Difference between Cash flow Vs Funds Flow
 Do you have any idea about basic banking?
 What are the key steps involved in formulating treasury policy of a firm? TCS 
 What is Value at Risk approach? TCS
 what is the meaning of finance Bank-Of-America 
 Why do you want to work with our company not others?
 Financial Management What will your outlook towards maintenance of liquid assets
to ensure that the firm has adequate cash in hand to meet its obligations at all times?
NIBM
 what is the product of money market
 What is the functionality of Stock exchange Ing-Vysya-Bank
 What is reconciliation of assets?
 What is Real account? Accenture

3
 What is Sub-prime Crisis?
 what are the determinants of dividend policy
 what is call option Kotak
 What is pay Roll Savings Scheme?
 What is cash management????...........  
 Why the company preferring presence capital rather than debenture capital? IBS
 What is Put Option?
 What do you understand by Research Design? Outline formal research designs.
ReadiMinds
 Now a day which type of fund is best in share market? India-Info line
 What is debit  
 Is there any course conducted for NSE intra trading and what is the basic technical
analysis for nifty? What a beta is in security marketing?
 What is GDP what is VAT?
 What is SLR?
 Types of tax
 What is the diff among repo rate, reverse repo rate and bank rate?
 What is swap?  
 What is the problem that is being faced by fixed maturity plans today?  
 Why do you want do your specialization in finance? Wipro
 What is way of success of MFC industry? IBM
 How will depreciation affect PAT?  
 What do you mean by Forfeited shares? Capital-IQ
 What is difference between factoring and leasing?
 What is Finance Function eClerx
 Which debt instrument is preferred by the company for financing?
 Describe the dynamics of culture as a multi-level, multi- layer construct.
 What is equity stake / total equity? TATA
 what is the difference between stock & shares, Genpact
 How to Measure cost of capital? explain the measures of cost of capital
 What is Futures contract?
 What is Risk?
 What is accounting? India-Info line
 What is ROE?
 “Equity share is most safe capital in the organization” – Comment Edelweiss
 What is the difference between single point tax and value added tax? CS
 14 principles of henery feyoul
 What is BRS? British-Airways
 is there any course conducted for NSE intra trading and what are the basic technical
analysis for nifty also want to know how to learn the charts in NSE?  
 what is equity
 What is Put Option?  
 What is EPS?
 What is Dividend Pay out Ratio?

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 What are accounting Principles? Infosys
 What is EURO BOND?  
 Why the company preferring presence capital rather than debenture capital? IBS
 Was it the wrong and aggressive use of derivative instruments that led to the
financial crisis in the us and the world over?
 What is stock?
 What is mean by OTC?  
 In Banking industry difference between interest income and interest expenses is
called as ............. Capital-IQ
 what is G.D.P  
 the difference between ROCE and ROSF  

 what is the difference between debenture and preference share Indiabulls

 What is the process for purchasing of any thing in a MNC if it is a constructions
company?  
 How crude oil prices and inflation is inter-related especially for India and U.S.  
 What is nominal account?
 Who is a lame-duck?  
 What do u mean by portfolio management?? HDFC
 What do you mean by Forfeited shares? Capital-IQ
 Difference between Cash flow Vs Funds Flow Seaways
 Profit maximization is not wealth maximization – Discuss briefly by giving
appropriate examples. Annamalai-University
 If private company will takeover the public company it will come under which type
of takeover? Brigade
 Types of Lease? Karvy
 What is Bonus Dividends?  
 What is fixed cost? Capital-IQ
 what is non performing asset(NPA)
 How to calculate TDS on u/s 194C?
 What is the difference between profit and gain? Capital-IQ
 What is meant by orbit rage? ICICI
 What is Bond?  
 What do u mean by capital adequacy ratio?  
 what is the meaning of finance Bank-Of-America
 What are options?  
 Difference between Cost Accounting and Financial Accounting? Saga
 What is net present value?  
 What is the functionality of Stock exchange Ing-Vysya-Bank
 What is amalgamation?  
 Differentiate between Horizontal And Vertical Merger
 What is Hedging?
 Describe the dynamics of culture as a multi-level, multi- layer construct.
 What are debentures?  

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 What is meant by G L accounting...?
 Difference between P&L A/c and Balance Sheet?  
 Is there any obligation to issue preference shares at fixed rate of dividend?
 What is the difference between Indian GAAP and Accounting Standards? Goldman-
Sachs
 If both the tax rate & interest rate is 10%. Then from where the company raise fund
from debt or equity. And which one is more suitable.  
 WHAT DO YOU UNDERSTAND BY THE TERM”CAPITAL GAINS” USED IN
THE INCOME TAX ACT? WHAT ARE THE RULES REGARDING
EXEMPTION OF CAPITAL GAINS. CitiGroup
 What will u conclude from P&L A/C? Capital-IQ
 How the price of a stock is calculated in Indian stock market (NSE or BSE)? TCS
 Why do you want to do MFC? Why didn't you go for C.A.? SIBM
 WHAT IS THE DIFFERENCE BETWEEN Speculation and Investment? TCS
 What are collateral securities?  
 What is the difference between Risks, Threat & Hazard? IIRM
 Types of ratios? what r they Deloitte
 What is mean by fidelity funds, inception date, right issue, and stock split?  
 What is the difference between bank rate and repo rate?
 what is the difference between debenture and preference share India bulls
 What is Market Risk?
 Plz tell me who are known as underwriters? in simply
 What are the components or companies of BSE - Bombay Stock Exchange Sensex?
CitiGroup
 In stock market i find the term futures and options ? what was the meaning of that
sensex futures and options Genpact
 on which basis sensex and nifty will be measured and also how the inflation rate
measured  
 TELL US SOMETHING ABOUT OUR COLLEGE? IIRM
 “Equity share is most safe capital in the organization” – Comment Edelweiss
 What is Merger? What is Acquisition? What are motive behind mergers And
acquisitions? WNS
 What is Bonus Dividends?  
 How trading goes in stock markets. I.e. in BSE how we are knowing that a
company’s share is increasing or decreasing?  
 Raising funds through debt-equity in Indian economy. if a firm is going to use it &
after year if depression is continue in economy & it faces inflation currently. Their is
a 50-50 risk on both. What is the right choice?  
 What is convertible debenture? What is its effect on EPS? Capital-IQ
 What is APEX Banking?  
 What is E.T.F. Give the name of any company who is famous for this type of
service? JPMorgan-Chase
 Explain the cash flow statement with pipeline theory..????  
 what is mean by Due Diligence  

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 What is finance?  
 What is minority interest?  
 Which are the companies listed in national fifty(NIFTY) and sensitive
index(SENSEX) Ad Labs
 Who is the highest salaried employee of India whose salary is 12 Crores/Month?
 Difference Between merger and acquisition? Allahabad-Bank
 What is the difference between single point tax and value added tax? CS
 How can you create a secret reserve? Wipro
 When inflation was high also the recession was high how these two contradictory
things occur at a same time ADP
 Suppose a company has issued deep discount bands which has face value of INR
200000 maturing after 25 years. The bonds were issued at INR 5300.whar is the
effective interest rate earned by the investor from this bond?  
 WHAT ARE THE ADVANTAGES OF INFLATION
 WHAT IS ABSOLUTE CHANGE AND ANNUAL CHANGE IN MUTUAL FUNDS
 WHAT IS EX - DIVIDEND DATE
 WHAT IS RECORD DATE IN MUTUAL FUNDS
 WHOM U'LL FOLLOW IN UR LIFE A SUCCESSFULL PERSON OR A UN-
SUCCESSFULL PERSON
 TYPES OF MUTUAL FUNDS AND HOW TO CALCULATE NAV
 INTREST VS BONDS
 WHAT ARE VENILLA OPTIONS
 WHAT ARE GREEN SHOE OPTION
 WHY CURRENCY FURURES ARE TRADED AT SINGAPORE STOCCK
EXCHANGE  
 What is Treasury Bills? ICICI
 What is Market Risk?
 What does equity means  
 Who are underwriters? What is their work? HDFC
 What is the process for purchasing of any thing in a MNC if it is a constructions
company.
 on which basis sensex and nifty will be measured and also how the inflation rate
measured  
 What are GAAP? Brigade
 Which is the Biggest Stock Exchange in India?  
 Are Bank rate, Discount rate and Repo rate the same in Indian context?  
 What is Debenture
 What is Rate, Reverse Repo Rate, and Bank Rate. How do u determine the Price
Brand of an IPO How do u fix the Base Price of the IPO.
 What are mutual funds and what are the best funds to buy at this time. Why??
Bank-of-Bahrain-and-Kuwait
 what is the difference between debenture and preference share India bulls
 What is differed revenue? Thomson
 What is Inflation Risk? What are quick assets? Give me some examples Capital-IQ

7
 Difference between future contract and forward contract?  
 Name 2 stock exchanges of U.S.A Capital-IQ
 What is crossover rate? Apex
 What is accounting? India-Info line
 Why one rupee note is signed by the ministry of finance? is governor has the right to
sign this note? is there any interference by the RBI?
 What is Interim Dividend
 Which Exchange determines Foreign Exchange/Currency Rate? HDFC
 Now a day which type of fund is best in share market? India-Infoline
 What is the official criterion for blue-chip companies?
 What is sensex? HDFC
 What is the effect of CRR hike on market? Capital-IQ
 What is the Sensex and index numbers how do i know the sensex and what is the
procedure to purchase shares in a big company?
 Being the finance manager being of a company how will you make finance
forecasting NIBM
 What is the difference between debt and equity? ABN-AMRO
 What is E.T.F. Give the name of any company who is famous for this type of
service? JPMorgan-Chase
 What will your outlook towards maintenance of liquid assets to ensure that the firm
has adequate cash in hands to meet its obligation at all times? NIBM
 recently i heard in news that bank rate and repo rate are cut by 100, 50 basis points
what does this mean exactly, plz explain me this in simply words
 What is the diff among repo rate, reverse repo rate and bank rate?  
 What is Secondary Market?  
 WHAT IS RISK MANAGEMENT? (Specifically for Risk Management students)?
IIRM
 What is fundamental Analysis?  
 what are the various methods to curb inflation Oriental-Bank-Of-Commerce
 Describe the dynamics of culture as a multi-level, multi- layer construct.
 What is the difference between wealth, cash n money?
 what are the important question which some ask at the time of interview of a finance
company ICICI what is the product of money market SBI
 What is dividend?  
 Different types of insurance ADP
 Who are known as underwriters? In simply words?
 What is consolidated financial statement? Capital IQ
 which difference between tally version 4.5, 6.5, 9.0, erp 9  
 What is the meaning of holding Holding company? Give one example?  
 What are the methods of accounting?  
 When did Bonus shares issued?  
 What is Share Premium?  
 What is Differed revenue expenditure? Capital-IQ
 Why we do depreciation? What is the main object of Depreciation?  

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 Which situation Current Assets become working capital?  
 What will happen if an organization not maintains the sufficient working capital?  
 Explain the role of working capital in capital budgeting?  
 What is Current Assets minus current Liabilities?  
 A company getting losses from last 3 years. if u r a analyst what u will recommend
to u r client.?