40+ Assistant Manager Finance Interview Questions and Answers

Provision for doubtful debts is an estimated amount set aside to cover potential losses from customers who may not pay their debts.

• The accounting entry for provision for doubtful debts is a debit to the provision for doubtful debts account and a credit to the bad debt expense account.

• This is necessary because it helps to accurately reflect the true value of accounts receivable on the balance sheet.

• Without this provision, the accounts receivable balance would be overstated and...read more

Cash flow of a company with continued and discontinued operations is calculated by combining cash flows from both segments.

• Combine cash flows from both continued and discontinued operations to get total cash flow

• Consider any one-time gains or losses from discontinued operations separately

• Analyze the impact of discontinued operations on overall cash flow

• Ensure accurate reporting of cash flows from both segments in financial statements

Capital market instruments are financial products used to raise funds from investors for long-term investment purposes.

• Equity shares

• Debentures

• Bonds

• Commercial paper

• Treasury bills

• Preference shares

• Mutual funds

• Exchange-traded funds (ETFs)

• Derivatives

• Options

• Futures

• Swaps

Yes, I have experience of working on Oracle ERP system.

• I have worked on Oracle ERP system for 2 years in my previous job.

• I am proficient in using Oracle Financials and Oracle Procurement modules.

• I have experience in configuring and customizing Oracle ERP system to meet business requirements.

• I have also provided training to new users on how to use Oracle ERP system.

VaR stands for Value at Risk, a measure used to assess the potential loss in value of a portfolio over a specific time period.

• VaR is a statistical measure used to quantify the level of financial risk within a portfolio.

• Variables used in calculating VaR include the portfolio value, the time period, and the level of confidence.

• For example, a 95% VaR of $1 million over a one-week period means there is a 5% chance of losing more than $1 million in that week.

3 Way matching process is a method of verifying the accuracy of invoices by comparing purchase orders, receipts, and invoices.

• It involves comparing three documents: purchase order, goods receipt note, and invoice.

• The purchase order is created by the buyer and contains details of the goods or services to be purchased.

• The goods receipt note is created by the receiver of the goods and confirms that the goods have been received.

• The invoice is created by the supplier and contains ...read more

Securitisation is the process of converting illiquid assets into marketable securities. MRR is Minimum Reserve Requirement & MHP is Minimum Holding Period.

• Securitisation involves pooling of assets and issuing securities backed by those assets

• MRR is the minimum amount of reserves that banks are required to hold by the central bank

• MHP is the minimum period for which banks are required to hold certain assets before selling them

• Securitisation helps in raising funds and reducing r...read more

Adjustment entries for Ind AS ensure compliance with Indian Accounting Standards in financial reporting.

• 1. Fair Value Adjustments: Assets and liabilities may need to be recorded at fair value, e.g., investment properties.

• 2. Deferred Tax: Recognize deferred tax assets and liabilities based on temporary differences, e.g., depreciation methods.

• 3. Leases: Adjustments for operating leases under Ind AS 116, recognizing right-of-use assets and lease liabilities.

• 4. Financial Instrume...read more

Depreciation accounting allocates asset costs over their useful lives, impacting financial statements and tax calculations.

• Depreciation is recorded as an expense on the income statement, reducing taxable income.

• Common methods include straight-line, declining balance, and units of production.

• For example, a $10,000 asset with a 5-year life has a straight-line depreciation of $2,000 per year.

• Accumulated depreciation is recorded on the balance sheet, reducing the asset's book val...read more

Ind AS 115 is a revenue recognition standard that outlines a 5-step model for recognizing revenue.

• Ind AS 115 is a converged standard that replaces the existing revenue recognition guidance in Ind AS 18 and IAS 18.

• The 5-step model of Ind AS 115 includes: identification of the contract, identification of performance obligations, determination of transaction price, allocation of transaction price to performance obligations, and recognition of revenue when performance obligations...read more

Delta measures the rate of change of an option's price with respect to the underlying asset's price, while gamma measures the rate of change of delta with respect to the underlying asset's price.

• Delta is the first derivative of the option price with respect to the underlying asset price, while gamma is the second derivative of the option price with respect to the underlying asset price.

• Delta tells us how much the option price will change for a $1 change in the underlying asse...read more

Internal controls are procedures and policies implemented by an organization to ensure the integrity of financial and accounting information.

• Identify and assess risks

• Develop policies and procedures

• Implement controls

• Monitor and review controls

• Examples of internal controls include segregation of duties, access controls, and regular audits

Indian Accounting Standards (Ind AS) are a set of accounting standards notified by the Ministry of Corporate Affairs which are converged with International Financial Reporting Standards (IFRS).

• Ind AS are based on principles rather than rules, providing more flexibility in financial reporting.

• They aim to improve transparency, comparability, and reliability of financial statements.

• Example: Ind AS 115 - Revenue from Contracts with Customers, which provides guidance on recognizin...read more

The technical report should detail the land cost, house cost, and overall amount.

• The technical report should include a breakdown of the land cost and house cost.

• The overall amount should be the sum of the land cost and house cost.

• The report should provide a detailed analysis of the factors that contribute to the land and house costs.

• The report should also include any relevant financial calculations, such as depreciation or amortization.

• The report should be presented in a clea...read more

Understanding tax return due dates and the filing process is crucial for compliance and financial planning.

• Tax returns for individuals in the U.S. are typically due on April 15 each year.

• Extensions can be filed to push the due date to October 15, but taxes owed are still due by April 15.

• Businesses often have different due dates; for example, corporations may file by March 15.

• The tax return process involves gathering financial documents, completing the appropriate forms, and s...read more

As an Assistant Manager Finance, I will oversee monthly financial reporting, budgeting, and compliance activities.

• Prepare monthly financial statements, including income statements and balance sheets.

• Conduct variance analysis to compare actual results against budgeted figures.

• Manage cash flow forecasting to ensure liquidity for operational needs.

• Coordinate with departments for budget preparation and revisions.

• Ensure compliance with financial regulations and internal policies.

• R...read more

I have no experience in cross-border trucking.

NPV stands for Net Present Value, which is a financial metric used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

• NPV helps in determining whether an investment will be profitable or not by taking into account the time value of money.

• It is calculated by discounting all cash flows (both inflows and outflows) to their present value using a discount rate.

• A positive NPV indicates that the investm...read more

The Golden Rule of accounting states that debit the receiver and credit the giver.

• The Golden Rule is a fundamental principle in accounting.

• It helps in maintaining the balance in the accounting equation.

• According to the rule, for every transaction, there must be a debit entry and a corresponding credit entry.

• Debit refers to the left side of an account, while credit refers to the right side.

• The rule ensures that the accounting equation (Assets = Liabilities + Equity) remains in...read more

Generally accepted accounting principles are a set of rules and standards that companies must follow when preparing financial statements.

• GAAP ensures consistency and transparency in financial reporting

• GAAP includes guidelines for revenue recognition, expense recognition, and asset valuation

• Examples of GAAP include the matching principle, historical cost principle, and full disclosure principle

IRR stands for Internal Rate of Return, a metric used to evaluate the profitability of an investment.

• IRR is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

• It is used to compare the profitability of different investments or projects.

• A higher IRR indicates a more profitable investment.

• IRR is often used in capital budgeting to determine whether a project is worth pursuing.

• For example, if a project has an IRR of ...read more

Finance encompasses functions like budgeting, forecasting, investment analysis, and financial reporting to manage an organization's financial health.

• Budgeting: Creating a financial plan to allocate resources effectively, e.g., annual budget for departments.

• Forecasting: Predicting future financial outcomes based on historical data, e.g., sales forecasts for the next quarter.

• Investment Analysis: Evaluating potential investment opportunities to maximize returns, e.g., analyzing ...read more

The question is asking if the candidate has handled the profile before.

• Yes, I have handled similar profiles in my previous roles

• No, this would be a new experience for me

• I have experience in handling financial profiles but not specifically as an Assistant Manager

Yes, I am familiar with GST (Goods and Services Tax) which is a value-added tax levied on most goods and services sold for domestic consumption.

• GST is a consumption tax that is imposed on the supply of goods and services in India.

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

• GST has different slabs - 5%, 12%, 18%, and 28% - based on the type of goods or services.

• It aims to simplify the tax structure, reduce tax evasion, and boost economic growth.

Internal controls can be managed by establishing policies and procedures, segregating duties, monitoring activities, and conducting regular audits.

• Establish clear policies and procedures for financial transactions

• Segregate duties to prevent fraud and errors

• Monitor activities regularly to ensure compliance with policies and procedures

• Conduct regular audits to identify weaknesses and improve controls

• Train employees on internal controls and their responsibilities

• Use technology t...read more

Variable costs change with production levels while fixed costs remain constant.

• Variable costs fluctuate based on production volume (e.g. raw materials, labor)

• Fixed costs remain the same regardless of production levels (e.g. rent, salaries)

• Variable costs are directly related to the level of output, while fixed costs are independent of output

• Understanding the distinction between variable and fixed costs is crucial for budgeting and decision-making in business

Yes, I am willing to relocate to a new city for this opportunity.

• I am open to new experiences and challenges

• I have relocated before for work and am familiar with the process

• I am excited about the prospect of exploring a new city and culture