here r some finance interview questions.........I hope it will be helpful for u .

What are financial instruments whose price and value derive from the value of assets underlying them called? DERIV !IVE" What is an investment that is ta#en out specifically to reduce or cancel out the ris# in another investment? $ED%E What in financial means merger ofeither one or more companies with another company or merger of two or more companies to form one company called?& ' (% ' !I)* What refers to various schemes of offering an equity sta#e by a +ompany to its employees? E"),s What is Ris#? & potential negative impact to an asset or some characteristic of value that may arise from some present process or future event. What-s the term that applies to the most reliable industrial shares of reputed companies which have a stable growth and least ris# involved in investment in such companies by the public?& .(/E +$I, What is "ervice !a0?& It is a ta0 on services rendered& e.g on telephone1 electricity 1 insurance etc. all attracts service ta0. What is .an#ing +ash !ransaction !a0&2 .+!!3 ?& pplicable on withdrawl ofcash from ban# e0ceeding a particular amount. What is 4ringe .enifit !a02 4.!3?&!he perquisites or benifits provided by the epmloyer to his emplyees in addition to the salary or wage are ta0able.!his is #nown as 4.! .Employers now pay this ta0. What is "ecurities !ransaction !a0& 2"!!3?& It is a sort of turnover ta0 where the investor has to pay a small ta0 on the total consideration paid 5received in a share transaction. Why Investment .an#ing 5 ,rivate Equity5 ,rivate +lient "ervices? $ow do you value a company 2particular to investment ban#ing 5 private equity etc3? What qualities do you thin# are important for this industry? Do you possess those qualities? Why would two companies merge? What ma6or factors drive mergers and acquisitions? !ell me three items on the front page of today-s Econimic !imes 5 4inancial E0press etc? Why might a company choose debt over equity financing? Where is our firm-s stoc# trading? What do you #now about the mico&finance institutions in India?

What do you #now about ")7 or "arbanes&)0ley ct? !ell us more about the .asel&II implementation in Indian ban#s ? D) you thin# investment ban#ing and asset management sectors are strategic growth mar#ets in India? When did you decide you wanted to be in the financial services 5 finance career? What do you see an finance manager-s role would be in day&to day wor#? What will you get out of wor#ing here? $ow does your past career qualify you for a position in investment ban#ing 5 etc? What is your greatest concern about Investment .an#ing 5 our firm5industry as such? Ran# the firms in our industry. Where do you fit? Who is our competition? What differentiates our firm? What are our strengths 5 wea#nesses? Why did you choose our company? What is carbon credit trading? &!rading in carbon credits is an emerging business globally as the cost of purchasing carbon credits from developing countries li#e India or +hina is much less than earning the credit through emission reduction in the developed countries. +arbon credits are earned by reducing carbon emissions from plants etc. Indian companies can also profit by selling their carbon credits in dedicated e0changes in Europe and the /" at a much higher price.

89 Why 4inance? 89 Describe the finance functions within a company and where you see yourself fitting. 89 What:s a ,rice5Earning 2,5E3 ratio and how do you use it? 89 What if ; companies have the same value of ,5E ratios1 which company does you thin# is better? 89 $ow would you e0plain net present value to non&finance ma6or? 89 What is our company:s stoc# price? $ow would you forecast the future stoc# price for ne0t year? 89 $ow would you choose to buy a particular stoc#? 89 Why might a company choose debt over equity financing? 89 Where is the mar#et going? 89 What ma6or factors drive mergers and acquisitions? 89 What is goodwill? $ow does it affect net income? 89 What is wor#ing capital?

89 What are deferred ta0es? 89+an you describe a recent situation in which you accomplished an important ob6ective in a brief period of time? 89 $ow do you ta#e challenges? 89 re you willing to wor# in shifts? 89 What is the thing you li#e the most in the world? Why? 89 What is the thing you disli#e the most in the world? Why? 89 What does success mean to you? 89 $ow do you define failure? 89 What is contingency liability? 89 $ow do you value a company? 89 <ou-ve been as#ed to reduce the budget by =>. What criteria will you use in identifying the budget reductions? 89 Who is a more senior creditor1 a stoc#holder or a bondholder? 89 What is the difference between accounts and finance? 89 E0plain fi0ed cost1 variable cost and marginal cost? 89 What is .rea# Even ,oint? What does it signify? 89 What is the purpose of chargebac#? 89 What is 'I" report and do you prepare it? 89 Why are you leaving the organi?ation you wor# for? 89 $ow much time do you need to 6oin the organi?ation? 89 re you aggressive? 89 What ma#es you a good manager? 89 What motivates you the most? 89 What s#ills and abilities do you have? 89 Is there anything you want to as#? 89If you were hired for this 6ob1 what areas would you ma#e an immediate impact? 89In what areas do you thin# you will need guidance? 89$ow will you approach learning this @new@ 6ob? 89$ow will you approach acquiring new s#ill sets? 8 escribe the most difficult situation you have faced in your career and how you managed it. 8 escribe some problems you encountered in your most recent position and ow you resolved them. 89What specific steps do you utili?e in solving wor#place problems? 89 What e0perience have you had in fi0ed assets accounting? 89 $ow can you create .udgets for daily pods? 89 $ow to use special and pair value sets? 89 What is consolidation ? 89 Why depreciation is not charged on land? 89 +an u e0plain me the flow in %eneral ledger? 89 What is meant by group chart of accounts in sap fico ? 89 $ow important does ccounts receivable for small business and why? 89 What are the goals of ccounts receivable? 89 What are the powerful softwares that could be used for doing efficient ccounts

receivable? 89 What are the strategies to be followed for preparing ccounts receivable? 89 $ow debtors play its role in ccounts receivable? 89 Who is responsible for maintaining the ccounts receivable in an organi?ation? 89 $ow important is ccounts receivable to business? 89 What do you mean by ccounts payable cycle? 89 What is !rial .alance? 89 What is difference between account payable and bills payable? 89 $ow to account freight cost1 handling charges1purchase ta0 at the time of raising a ,urchase )rder? 89 What is Reconciliation "tatement ? 89 $ow do you answer this question @what is company code@. 89 Is it necessary to create "undry creditors? 89 What is the meaning of !D"? $ow it is charged? 89 What is interest on +apital? 89 What is ,ool rate? 89 What the procedures or process involved in the preparation for the audit? 89 What is Web udit? 89 What are the different types of internal audit? 89 What is the difference between an internal audit and the annual e0ternal audit? 89 What is Internal udit? 89 What is meant by "ingle udit process? 89 Where is udit Data "tored? 89 What is meant by computer auditing? 89 What are the reasons for getting audited? 89 What do -income assessed- and -non&income assessed- mean? 89 What is authori?ed share capital? 89 What is paid up share capital? 89 $ow much depreciation to be calculated for fi0ed assets older than A years? 89 What is accumulated depreciation? 89 What are the 6ournal entries which get passed from asset purchasing to asset retirement? 89 What is fictitious assets? 89 What is the difference between the different depreciation methods? 89 What are the activities present in payroll tas#? 89 What is ,ayroll Disbursements Bournal? 89 What are the steps in ,ayroll 'anagement? 89 What is the software efficient for carrying out payroll tas#s? 89 What is the difference between paychec# and ,ayslip? 89 $ow advantage is payroll for small business? 89 What is ,ayroll Bournal?

Why should I hire you? I will not say that I am the best candidate sitting here, because I don't know anything about the other aspirants sitting outside. But I surely know about my abilities which can make me stand apart from the rest. I am a highly optimistic person and no problem can deter me from achieving my goals. Also I can adjust to any situation and can work with any type of colleague as I see it as a great opportunity to learn from others which will help me to expand the hori on of my knowledge. And the best thing about me is that I can make people around me happy and calm, so I can make the hectic work environment a bit relaxed. What are your strengths and weaknesses? !y strength is my weekness. "edication to work is my strength. #ometimes it becomes my weekness.If the work is given to me. I wont leave it till it gets completed.I will try to complete as soon as possible. Why do you want to work at our company? I need a job which suits my $ualifications and skills,and which recogni e my ability in the organi ation,so that i can update my knowledge and skills along with organi ation's growth.and i feel that my profiles are matching your re$uirement.As per fresher i feel that this is the challenging opportunities to test my theoretical knowledge to achieve the practical expertise,which can help your organi ation towards growth. What is the difference between confidence and over confidence? Confidence can defined as the beleiving in you're ability to acheive you're goals % performing tasks % facing challenges , with re$uired efforts from you'r part Over-Confidence can be defined as over&rating you're ability to achieve certain tasks % goals % challenges which is far from you're reach and trying to reach it may lay the path for you're down fall. What is the difference between hard work and smart work? Smart work is well planned structured work and hard work is working like a machine without thinking much..........'or a employee to be successful, using his brain in t he little work he does is more important than what normally people do... appreciation comes only when u stand out of the box.here in dis case we call it smart work.

How do you feel about working nights and weekends? If it is a regular phenomenon, I may not like it. Because as every machine needs a rest after working for a long time and recollect energy to work further, similarly our body also needs some relaxation at the end of day or week the job. But if there is some situation I will always be there to fulfill the re$uirements of the company at customer service. Can you work under pressure? (es, I can work under pressure. Because it will help me to show how I adapt those kind of situations also if I am, it will provide a chance to prove myself among others Are you willing to relocate or travel? (es, so that I can enjoy more in my work and chances will be more in knowing new things. What are your goals? !y short term goal is to be a part of an organisation where I can learn new things and use my knowladge, skills for benifits of organisation... And long term goal is I would look to myself for the higher post. What motivates you to do good job? 'or the self satisfaction, the self confidence, to enhance my knowledge always motivates me to do a good job. Also my parents, who have made a lot of sacrifices in their life to make my dream real, motivates me a lot to do a good job and to make them proud to be my parents. What makes you angry? I became angry when I see people are not committed to their work. 'or me )ommitment is sumthing which help you to succeed in life and unprofessionalism also make me angry Give me an e ample of your creativity! ..In the beginning i had noticed that same softwares had been installed daily in my company ..so then i have createad a *.exe* file , we have to do just one click on it ...automatically softwares would be installed one bye one.... so it save our time.... How long would you e pect to work for us if hired? If the company gives a good recognition for my work, there will be no

need for me to shift over another company. Are not you over"ualified for this position? +ot ,ver$ualified, I would say well $ualified, my $ualification will just help me to do the job better, and it will favor me to handle more responsibilities and help me to rise up to your expectations. #escribe your ideal company$ location and job! -he company which offers me an opportunistic environment and growth is ideal for me. About location, i am not location specific. I just want to be a part of such a company wherever it is. And ideal job for me is the one which develops my skills and makes me feel energetic by doing it. -he company which offers me an opportunistic environment and growth is ideal for me. What are your career options right now? I want to be work in good reputed company like yours where i can improve my skills and i being a part of developement of our company. % plain how would be an asset to this organi&ation? #ir, I must do hard work to take the organi ation to good position. I would like to get good name in my company so I do hard work as I can my best. What are your outside interests? !y out side interest is helping poor persons to do something and helping my level best. Would you lie for the company? it depends upon the situation sir...one reputed company never face that kind of situation...if the situation comes then definitely i will sir...why because as our ancient stories said if one lie can give a good result then its good only...thank you sir... Who has inspired you in your life and why? I get inspired when a person describes their success behind their hardwork. -hat will make me and positive thinker and hardworker. What was the toughest decision you ever had to make? -oughest decision I had to make was between continuing my studies or doing job. 'inally I choosed to do job and want to make use of my skill, talent ad $ualification to become more experienced and knowledgeable. Have you considered starting your own business?

+ot right now but I have a plan to start my own business after gaining experience, expertise and financial support. Also I want to learn from the company I work for in the mean while How do you define success and how do you measure up to your own definition? By the -hree "'s .& "etermination. "iscipine, "edication... If you won '() million lottery$ would you still work? I will work because there is something which the money can't buy that is skill and knowledge. ,nly experience through work can make us to know how to manage these large amount of money and to utili e it wise fully. /0 million dollar is like a beautiful garland in the hands of monkey unless and until he gathers knowledge through work. *ell me something about our company! How much salary do you e pect? #ir, I'm expecting the salary according to the company's norms and designation and my $ualification, but I would expect a regular increment in the salary based on performance of the employee. Where do you see yourself five years from now? After 1 year, I would like to see my self at a respectable postion in the company where my decision hold some importance and subordinates look up to me for the inspiration. +n a scale of one to ten$ rate me as an interviewer! #ir i am not in a position to rate you, since you asked this to me i rate you 2 %/0 because being an interviewer you made me so confotable and your way of asking $ostions are simple and understandable .... #o you have any "uestions for me? -hank you for giving me this opportunity, I would like to know if I'm hired and what would be my profile and renumeration and want to know more about your organi tion.