Here are the 30 most common interview questions and how to answer them.

Q: Can you tell me a little bit about yourself?Nearly every interview that you go to will kick off with this basic question. You want to keep your answer concise but information-packed. Briefly explain your educational and employment experience with one or two sentences. (After all, the employer can already see that in your resume.) Follow up with additional information about what you are passionate about (relevant to the job) so that you impress the employer immediately with your enthusiasm. Keep all irrelevant

personal information out of your answer.

Q: Why are you interested in working with this company?There are several different things that an employer may be trying to get at when asking this question. Address them all in your answer, and you’ll have a successful interview. Those things include:

What do you actually know about our company? What skills do you bring to the company? Why are you even looking for a job in the first place? Why are you looking at getting a job that is below the status / pay of a previous job

you’ve held?Answer this common interview question by doing your research about the company and position before the interview and choosing a fact about the company that really interests you. Highlight this fact in the interview as a reason you want to work with the company, and then explain concisely how your skills dovetail with this.

If you are applying for jobs below your previous title, briefly explain that you realize that you may look overqualified for the position, but that you’re excited about the opportunity to learn some new skills from your younger co-workers while serving as a mentor as appropriate in specific situations. You may also want to mention that you appreciate that you won’t be the leader in this new position, and that you have appropriate respect for your boss (even if he is younger or less experienced than you are).

Q: Do you consider yourself successful?The correct answer is ”yes”. You want to show off your confidence. However, you should never give a one-word answer in an interview, so you’ll want to follow up with a specific reason that you consider yourself successful. For example, you might say that you have set goals and achieved them. You should also note that you don’t feel that you’ve reached your pinnacle of success and explain why this new position will take you one step closer.

Q: What are your career goals?You should think through this question before you go to an interview and come up with a truly honest answer that rings true for you. Then you should tailor this answer to be appropriate to the interview. If your goal is to enter an entirely different field, you need to

explain clearly why this job is the perfect stepping stone to that goal. For bonus points, identify a well-known mentor in your field, and explain the assets and aspects of their career that are touchstones for your own career goals.

Q: How long would you expect to stay with this company if we hired you?You want to make sure that you know in advance what type of position the company is hiring for and answer the question in line with that. For example, if it is a temporary position, then note that you are aware that it is a temporary position and that you would stay through the end of your contract with the possibility of being open to further employment — if it is offered. In general, you want to show that you’re not going to just jump at the next big chance, leaving this company in the lurch, so use this question to explain your commitment and loyalty to the projects that you take on.

Q: Can you please explain the gaps in your resume?Employers are fully aware of the fact that it’s tough to find a job right now so they’re not looking for an excuse about the employment gap . What they want to know is how you’ve been filling your time while you’ve been unemployed. Provide a thorough answer that explains what you’ve done and why it would benefit the employer. For example, if you took time off of work to stay at home with the kids, then focus on the fact that the skills required to manage a household will translate nicely to managing employees in your new position.

Q: What was your biggest challenge with your previous boss?The most important thing to remember here is to stay positive. You don’t want to gripe and complain about your past boss, even if she was a devil. You want to be very brief in describing the challenge and then expand on that by focusing on what you did to overcome the challenge. If the end result was a positive one, then be sure to highlight that, emphasizing the part you played in coming to that end.

Q: Do you enjoy working as part of a team?There is a subtle balance to be achieved when answering this question. You want to show that you can indeed be a great team member, collaborating with others and working together to produce a great end result. However, you also want to emphasize that you value the opportunity to share your own input and also that you have the ability to take instruction and run with it without having your hand held.

In order to achieve this subtle balance, you should answer that you do enjoy working as part of a team, but also that you aren’t afraid of taking on individual tasks, either. You should then provide two examples from your past; one that shows true collaboration and one that shows an ability to work independently in a manner that is an asset to the company.

A final note is that there are often gender stereotypes at play here that you should be aware of. Women are often seen as collaborative but unable to take initiative, so females should emphasize the portion of the answer that shows off their ability to take the lead on projects. On the other hand, men are sometimes seen as aggressive and unable to cooperate and take the lead from others, so their examples should emphasize their experience with collaboration.

Q: What role do you tend to play in a team?Here you want to demonstrate your knowledge of the different roles within a team and show that you have a strength but can still be versatile. For example, you might say that you think it’s great that each team has a communicator, a leader, a note taker, etc. and that you tend to take on the leadership role but are also able to be a communicator or a note taker, as needed. Provide a brief example from a past experience at work.

Q: What is a suggestion you’ve made at work that was implemented?This is a surprisingly common interview question, so make sure that you’ve prepared an honest answer for it. The point of this question is to show that you are able to contribute to the organization in a meaningful way. If you have never given a direct suggestion that was implemented, select an example of how a project or team effort that you were a part of led to a positive change at work. For example, you might explain that your participation in an eco-friendly campaign helped moved the company forward with greener actions.

 Q: Can you describe a situation when …The specifics of this question may vary, but the gist of it is very common to hear in interviews. For example, a common interview question that falls into this category is, “can you describe a situation when you had a conflict with a co-worker and how you resolved it?” The main stumbling block people come up against when answering this question is that they feel like they are “put on the spot” and can’t come up with an adequate scenario. There are two key things to help counter this problem. Number one, remember that the actual facts of the situation don’t matter. The value of your answer lies in your ability to demonstrate that you can solve conflict (or overcome adversity, or whatever the specific intent of the question implies). Number two, practice! Have a friend or family member ask you multiple questions of this nature so that you can practice what your answers will be. Above all else, don’t say, “I don’t know”!

Q: What are the most difficult decisions for you to make?This is an entirely different question, but it’s tricky because it’s basically another way of asking how you deal with conflict and stress at work. You can be honest in saying that something is difficult for you but quickly explain how you deal with that. For example, you might say that it is difficult for you to decide that it’s time to fire someone but that you weigh all of the pros and cons and look at the situation objectively so that you can make the right decision. Regardless of how this question is asked, you should provide a question related to work and not something from your personal life.

Q: What would your previous co-workers say about you?It is important to realize that this question has nothing to do with your co-workers. The question really is, “what are your best traits as someone to work with”. You want to answer in a manner that reflects your best traits. If you are preparing for an interview in advance, you may want to actually ask some of your former co-workers this question so that you can get a sense of what they see as their strengths. Don’t be afraid to quote these people in your interview and even let the employer know that you were actually told this information by someone you worked with.

Q: What is the most difficult thing about working with you?It is always hard to answer questions about your flaws since an interview is designed to bring out your best qualities. The key is to heavily de-emphasize the flaw. You want to say what is most difficult for you and what you’ve done to work on that problem. For example, you don’t want to say, “I’m always upset if I don’t do something perfectly” but rather should say, “I often struggle with perfectionism, but I am learning to take constructive criticism so that this isn’t a problem in the workplace.”

Q: What is your greatest strength as an employee?Be honest about this one. Everyone has something that they really excel at. Before the interview, identify what this is. Identify how it relates to the position that you’re applying for, your field and the company that you want to work with. Come up with an example of how you’ve used this strength in the past in a relevant way. Answer the question fully. Don’t worry that you’re bragging; this question is designed to allow you to brag, and you won’t receive bad feelings for going ahead with that.

Q: What do you do to deal with stress?Another common way that this same question is phrased is “how do you handle working under pressure?” Ideally you will be able to offer a creative explanation for how you handle stressful situations. For example, you may say that you take five minutes to play Sudoku and calm down or that you keep your best reference letter in your wallet to re-read when you need an emotional boost. However, it’s perfectly acceptable to simply say that you handle stress well and to give an example of an experience that shows this. Never say that you don’t handle stress well, even if you don’t! Provide an answer that shows that you at least know how someone should handle stress properly, even if you haven’t quite achieved a zen state yourself.

Q: Would you rather be liked or feared?The best answer to this question is: “Neither, I’d rather be respected”. This shows that you aren’t afraid to be a leader and that you aren’t going to slack off just to get along with everyone.  It also states that you’re not a domineering person who is going to turn people off with inappropriate aggression.

Q: Describe your management style.Obviously, you’ll only be asked this question if you’re applying for a management position, but it comes up in nearly all interviews for those positions. If you know what the preferred management style of the company is and you embody that, then by all means say it. Otherwise, you should say that you’re aware of different management styles and believe that different options suit different situations so you’re willing to be flexible to meet the needs of the situation.

Q: What motivates you?Here the employer is looking to find out what type of rewards you would expect from them in order to have job satisfaction. You want to stay away from mentioning monetary rewards here. Ideally, you should select intrinsic rewards that show that you don’t need a pat on the back for every good job you do. For example, you might say that you’re motivated by

meeting a challenge or that you’re motivated by working well with your team members and producing a high-quality product.

Q: What is your dream job?An alternative to this question is “what are you looking for in a job”? Either way it is asked you should basically explain the job that you’re applying for without coming right out and saying it. For example, if you’re applying for a management position in a green company then you might say that your dream job is one that is in line with your earth-friendly lifestyle and allows you to demonstrate leadership skills in a team setting. You may note that you want a fair rate of pay but that salary is less important than those other qualities.

 Q: Have you ever worked in a job that you hated?Of course you have, but you don’t want to focus on negative things in this interview. You should briefly say that there was a job that your skills weren’t matched for but that at least it gave you an opportunity to learn something new about yourself that has allowed you to find positions that suit you better. Make sure that whatever example you give is very different from the position that you’re applying for now!

Q: Is there anyone you would refuse to work with?You want to come off as amenable here but also as someone with values. Answer briefly that you would struggle to work with someone who broke the law or even major company policies, but that, in general, you find most people easy to work with. Explain how you would deal with a tough situation like this if it did come up.

Q: Are you willing to make sacrifices for this company?There are variations on this question such as “how do you balance work and home” or “would you are willing to work overtime” or “can you relocate if required”? Basically, you want to keep any answer brief and be agreeable but honest. If you truly can’t work overtime or go the extra mile, then you need to be honest about that in your interview so you don’t trap yourself into a responsibility that you can’t handle. A good answer in such an instance is that you are fully able to meet all of the stated responsibilities of the job, that you deal with your personal life on your own time, and that you would be happy to review specific situations on a case by case basis as they emerge to give as much as you can to the company.

Q: What is your expected rate of pay?This is a tricky question. You can approach it in one of two ways. The first is to sidestep the question by saying something along the lines of, “rather than discussing salary I am really most interested in discussing the requirements and expectations of the position”. Alternatively, you can answer by saying that you believe that someone with your experience and education should receive a salary in the range of (whatever the range is, which you should research) but add that you’re willing to be flexible and to discuss the details further if you are offered the position.

Q: What was your starting and ending rate of pay at your last position?

Clearly you have to be honest here, but what you want to highlight is your growth during your time at the company. You may want to mention a promotion, a change in title, or a reward, even if it didn’t lead to a corresponding rate increase.

Q: Do you know anyone who works with our company?Make sure that if you are applying at a place where you know an employee then you’ve fully researched their policies in advance in regards to hiring relatives. In your answer, you should say that you do know someone and then explain that you know the policy. If you don’t know anyone at the company you should say this and then briefly explain how you know about them or what you’ve heard about the company in general.

Q: What other applications have you put in?Many people are unsure about how to answer this common interview question because they don’t know exactly what the point is of this question. Well, here’s the clue that you need: the point is that you’re actively looking for work in the field. You should mention a few big names in the industry that you’re interested in working with to show that you know the field and are pursuing work with important companies. Then you should reiterate exactly why you want to work with this company over the competition.

Q: Why should we hire you?This is a question that sometimes comes at the beginning of the interview but it’s usually used as a wrap-up question, and you should treat it as such. Summarize the key points that you’ve already made throughout the rest of the interview. Focus specifically on what your greatest strength is and how this is exactly in line with what the company is looking for. Emphasize the relevant education and experience. You may want to add that you have felt very comfortable at the interview and believe that you will mesh well with the company atmosphere. It never hurts to combine a little bragging with a little bit of soft schmoozing at this point!

Q: What will you do if you don’t get this position?You want to stay positive. Answer that you hope that you’ll get the position but if the company finds another candidate for the job then you will move forward in finding a similar position in another company. Note that you hope they would keep your resume on file in case something lines up better in the future.

Q: Do you have any questions?One huge interview mistake that you can make is to say “no” to this common interview question that is typically answered at the very end of the interview. Employers may mistake this for a lack of interest in the job or even a lack of intelligence on your part. Before the interview, come up with a general question that you can ask about the company. For example, you might ask what the interviewer thinks are the best benefits and biggest drawbacks of the job. However, listen carefully during the interview to see if there are any other genuine questions that come up for you. Don’t hesitate to ask these when this common interview question is posed.

COMMON FINANCE INTERVIEW QUESTIONS (AND ANSWERS)Before we get to accounting questions, here are some interview best practices to keep in mind when getting ready for the big day.

1. Be prepared for technical questions. Many students erroneously believe that if they are not finance/business majors, then technical questions do not apply to them. On the contrary, interviewers want to be assured that students going into the field are committed to the work they’ll be doing for the next few years, especially as many finance firms will devote considerable resources to mentor and develop their new employees.

2. One recruiter we’ve spoken to said “while we do not expect liberal arts majors to have a deep mastery of highly technical concepts, we do expect them to understand the basic accounting and finance concepts as they relate to investment banking. Someone who can’t answer basic questions like ‘walk me through a DCF’ has not sufficiently prepared for the interview, in my opinion”.

3. Another added, “Once a knowledge gap is identified, it’s typically very difficult to reverse the direction of the interview.”

4. Keep each of your answers limited to 2 minutes. Longer answers may lose an interviewer, while giving them additional ammunition to go after you with more complicated question on the same topic.

5. It’s ok to say “I don’t know” a few times during the interview. If interviewers think that you’re making up answers, they’ll continue probing you further, which will lead to more creative answers, which will lead to more complicated questions and a slow realization by you that interviewer knows that you don’t really know. This will be followed by uncomfortable silence. And no job offer.

NOW ON TO ACCOUNTING QUESTIONS…

Accounting is the language of business, so don’t underestimate the importance of accounting questions. Some are easy, some are more challenging, but of all of them allow interviewers to gauge your knowledge level without the need to ask more complex valuation/finance questions.Below we have selected most common accounting questions you should expect to see during the recruiting process.

Q: Why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings?

A: Capital expenditures are capitalized because of the timing of their estimated benefits – the lemonade stand will benefit the firm for many years. The employees’ work, on the other hand, benefits the period in which the wages are generated only and should be expensed then. This is what differentiates an asset from an expense.

Q: Walk me through a cash flow statement.

A. Start with net income, go line by line through major adjustments (depreciation, changes in working capital and deferred taxes) to arrive at cash flows from operating activities

Mention capital expenditures, asset sales, purchase of intangible assets, and purchase/sale of investment securities to arrive at cash flow from investing activities.

Mention repurchase/issuance of debt and equity and paying out dividends to arrive at cash flow from financing activities.

Adding cash flows from operations, cash flows from investments, and cash flows from financing gets you to total change of cash.

Beginning-of-period cash balance plus change in cash allows you to arrive at end-of-period cash balance.

Q: What is working capital?

A: Working capital is defined as current assets minus current liabilities; it tells the financial statement user how much cash is tied up in the business through items such as receivables and inventories and also how much cash is going to be needed to pay off short term obligations in the next 12 months.Q: Is it possible for a company to show positive cash flows but be in grave trouble?

A: Absolutely. Two examples involve unsustainable improvements in working capital (a company is selling off inventory and delaying payables), and another example involves lack of revenues going forward.in the pipeline

Q: How is it possible for a company to show positive net income but go bankrupt?

A: Two examples include deterioration of working capital (i.e. increasing accounts receivable, lowering accounts payable), and financial shenanigans.

Q: I buy a piece of equipment, walk me through the impact on the 3 financial statements

A: Initially, there is no impact (income statement); cash goes down, while PP&E goes up (balance sheet), and the purchase of PP&E is a cash outflow (cash flow statement)

Over the life of the asset: depreciation reduces net income (income statement); PP&E goes down by depreciation, while retained earnings go down (balance sheet); and depreciation is added back (because it is a non-cash expense that reduced net income) in the cash from operations section (cash flow statement).

Q: Why are increases in accounts receivable a cash reduction on the cash flow  statement?

A: Since our cash flow statement starts with net income, an increase in accounts receivable is an adjustment to net income to reflect the fact that the company never actually received those funds.

Q: How is the income statement linked to the balance sheet?

A:  Net income flows into retained earnings.

Q: What is goodwill?

A: Goodwill is an asset that captures excess of the purchase price over fair market value of an acquired business. Let’s walk through the following example: Acquirer buys Target for $500m in cash. Target has 1 asset: PPE with book value of $100, debt of $50m, and equity of $50m = book value (A-L) of $50m.

Acquirer records cash decline of $500 to finance acquisition Acquirer’s PP&E increases by $100m Acquirer’s debt increases by $50m  Acquirer records goodwill of $450m

Q: What is a deferred tax liability and why might one be created?

A: Deferred tax liability is a tax expense amount reported on a company’s income statement that is not actually paid to the IRS in that time period, but is expected to be paid in the future. It arises because when a company actually pays less in taxes to the IRS than they show as an expense on their income statement in a reporting period.

Differences in depreciation expense between book reporting (GAAP) and IRS reporting can lead to differences in income between the two, which ultimately leads to differences in tax expense reported in the financial statements and taxes payable to the IRS.

Q: What is a deferred tax asset and why might one be created?

A: Deferred tax asset arises when a company actually pays more in taxes to the IRS than they show as an expense on their income statement in a reporting period.

Differences in revenue recognition, expense recognition (such as warranty expense), and net operating losses (NOLs) can create deferred tax assets

Financial statements are prepared in two forms:

•Balance Sheet : is a position statement as it refers to a particular date. It is also referred to as Statement of Sources and Application of Funds. It informs about the various sources used by the organization which are technically known as liabilities to raise the funds which are referred as assets. 

•Profitability Statement also known as Profit and Loss Account. It is a period statement as it refers to a particular period.

What are the various systems of Accounting? Explain them.

There are two systems of Accounting:

1) Cash System of Accounting: This system records only cash receipts and payments. This system assumes that there are no credit transactions. In this system of accounting, expenses are considered only when they are paid and incomes are considered when they are actually received. This system is used by the organizations which are established for non profit purpose. But this system is considered to be defective in nature as it does not show the actual profits earned and the current state of affairs of the organization.

2) Mercantile or Accrual System of Accounting: In this system, expenses and incomes are considered during that period to which they pertain. This system of accounting is considered to be ideal but it may result into unrealized profits which might reflect in the books of the accounts on which the organization have to pay taxes too. All the company forms of organization are legally required to follow Mercantile or Accrual System of Accounting.

What are the different types of expenditures considered for the purpose of accounting?

For the accounting purpose expenditures are classified in three types:

* Capital Expenditure is an amount incurred for acquiring the long term assets such as land, building, equipments which are continually used for the purpose of earning revenue. These are not meant for sale. These costs are recorded in accounts namely Plant, Property, Equipment. Benefits from such expenditure are spread over several accounting years.

E.g. Interest on capital paid, Expenditure on purchase or installation of an asset, brokerage and commission paid.

* Revenue Expenditure is the expenditure incurred in one accounting year and the benefits from which is also enjoyed in the same period only. This expenditure does not increase the earning capacity of the business but maintains the existing earning capacity of the business. It included all the expenses which are incurred during day to day running of business. The benefits of this expenditure are for short period and are not forwarded to the next year. This expenditure is on recurring nature. 

Eg: Purchase of raw material, selling and distribution expenses, Salaries, wages etc.

* Deferred Revenue Expenditure is a revenue expenditure which has been incurred during an accounting year but the benefit of which may be extended to a number of years. And these are charged to profit and loss account. E.g. Development expenditure, Advertisement etc.

Explain share capital & reserves and surpluses.

Share Capital is that portion of a company’s equity that has been obtained by issuing share to a shareholder. The amount of share capital increases as new shares are sold to public in exchange for cash.

Reserves and Surpluses indicate that portion of the earnings, receipt or other surplus of the company appropriated by the management for a general or specific purpose other than provisions for depreciation or for a known liability. Reserves are classified as: Capital Reserve and Capital Redemption Reserve.

What are the advantages and disadvantages of proprietary firms?

Advantages of proprietary firms: 

1. Easy Formation : Proprietary firm is easiest and economic form to create and operate as it can be started by any person without any legal formalities. Also there is no set limit of minimum or maximum number of persons to start the business as it can be started by a single person. 

2. Better Control : As the owner is the single person so he has full control over his business. His total authority over his business gives him the power to plan, organize, co-ordinate the various activities. The sizes of such firm are generally small which also makes it better to control. 

3. Quick Decision Making : Being the only owner of the business the sole trader takes all the decisions himself. He evaluates all the opportunities available and finds the solution to problems which makes decision making quick. 

4. Flexibility in Operations : One man ownership makes it possible to bring flexibility in the operations of the business. 

5. Personal attention to customer needs : Due to the small geographical area it becomes easy for the sole proprietor deal with all its customers personally and knows their needs. Thus it makes easy for him to pay special attention to consumer needs. 

6. Creation of Employment : Proprietor firm facilitates self employment and also employment for many others. It promotes entrepreneurial skill among the individuals. 

7. Equal Distribution of Wealth : Proprietary firm is generally a small scale business. Hence there are many opportunities for individuals to start their own business enabling widespread dispersion of economic wealth. 

8.No Legal Formalities required : A proprietary firm is not required to comply with all the legal and procedural formality. 

Disadvantages of Proprietary Firms: 

1. Unlimited Liability : In such firms the liability of the owner is unlimited as the owner takes more risk to earn more profits and increase the volume of his business by supplying his personal assets to the business. 

2. Limited Financial Resources : Being the single owner of the business, the availability of funds from various sources is limited. 

3. No Legal Status : The existence of business is due to the existence of sole proprietor. Death or insolvency of the sole proprietor brings an end to the business. 

4. Limited Capacity of Individual : An individual has limited knowledge, set of skills due to which his capacity to undertake responsibilities, his capacity to take quick decisions and bear risks are also limited. 

5.Transferring of business is not easy in the case of Proprietary Firm. 

6. Higher Taxes: As the sole proprietor is the direct person enjoying the profits thus he needs to pay higher taxes.

What are the main duties and responsibilities of a finance executive?

Recurring Duties: 

- Deciding the financial needs

- Raising the funds required

- Allocation of funds     •Fixed assets management     •Working capital management

- Allocation of Income

- Control of Funds

- Evaluation of Performance

- Corporate Taxation

- Other duties : to prepare annual accounts, carrying out internal audit, safeguarding securities, present financial reports to top management. Etc.

Non recurring Duties :

- Preparation of financial plan at the time of company promotion

- Financial adjustments in times of liquidity crisis

- Valuation of the firm at the time of acquisition and merger etc.

What are limited liability companies? What are its two types?

The limited liability company (LLC) is a business structure combining both the characteristics of a corporate and of partnership. As a corporate entity it protects its owners against personal liability on the other hand for tax purposes it is treated as a non corporate business organization. A limited liability company enjoys various benefits like owners or members of the company have limited liability due to the company’s separate legal existence, system of profit distribution is very flexible. Unlike a corporate organization it does not have to keep minutes or resolutions and is easier to operate. Tax advantage is the important benefit which a limited liability company enjoys as all the profits, losses and expenses are shared by the individual members. Thus the double taxation of paying corporate tax and individual tax is avoided. With all the above benefits limited Liability Company has few disadvantages also as the company comes to an end after the expiry or insolvency of its members.

There are two types of limited liability companies: 

Private Limited Company and Public Limited Company 

What is capitalization? What is its importance?

Capitalization is a term which has different meanings in both financial and accounting context. Capitalization in accounting means the cost to buy an asset which is included in the price of the asset whereas in financial terms it is the cost which is required to buy an asset which includes price of a particular asset and it also include the retained earnings of a company with stock debt and long term debt. There are two kinds of capitalization which are called as Over-capitalization and another is called as Under-capitalization. Capitalization is very import aspect in determining the value of the company in the market which is based on the economic structure of the company. This aspect depends on the previous records and economics of the company. This also shows a particular behaviour of the companies’ structure and allows them to create a plan to do the marketing. 

Explain Balanced Capitalization.

Capitalization is a collection of share capital, loans, reserves and debentures. It represents permanent investment in companies and it also removes the need of long-term loan plans. It is used to show the reality of the industry by promoting competition, development, profit and investment between individuals, companies and businesses. Balance capitalization is part of this Capitalization only where it is compared to the relative importance, value and other things to make it proportionate in every sense. In balance capitalization debits and

credits should be equal on both sides and the share should be shared among all in equal proportions. 

What is capital structure? What are the principles of capital structure management?

Capital structure is a term which is referred to be the mix of sources from which the long term funds are required for business purposes which are raised to improve the capital of the company. To fund an organization plan this capital structure is required which is the combination of debt and equity. The management ensures the capital structure accesses which are needed to fund future growth and enhance financial performance. The principles of capital structure management which are essentially required are as follows:-

1) Cost Principle2) Risk Principle3) Control Principle4) Flexibility Principle5) Timing Principle

What is composite cost of capital? Explain the process to compute it?

Composite cost of capital 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. The process to compute this is first computing the weighted average cost of capital which is the collection of weights of other costs summed together. The formula is given as:-

WACC= Wd (cost of debt) + Ws (cost of stock/RE) + Wp (cost of pf. Stock)< /STRONG> 

In this the cost of debt is calculated in the beginning and it is used to find out the cost of capital and other weights of cost is been calculated after the calculation each and every individual weight of the component is added and then it gives the final composite cost. 

What are adjustment entries? Why are they passed?

Adjustment entries are the entries which are passed at the end of each accounting period to adjust the nominal and other accounts so that correct net profit or net loss is indicated in profit and loss account and balance sheet may also represent the true and fair view of the financial condition of the business.

It is essential to pass these adjustment entries before preparing final statements. Otherwise in the absence of these entries the profit and loss statement will be misleading and balance sheet will not show the true financial condition of the business.

What is cost accountancy? What are the objects of Cost Accountancy?

Cost accountancy is the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and the ascertainment of profitability as well as the presentation of information for the purpose of managerial decision making.

Following are the objects of Cost Accountancy:

-Ascertainment of Cost and Profitability-Determining Selling Price-Facilitating Cost Control-Presentation of information for effective managerial decision-Provide basis for operating policy-Facilitating preparation of financial or other statements

What is the difference between costing and cost accounting?

Costing is the process of ascertaining costs whereas cost accounting is the process of recording various costs in a systematic manner, in order to prepare statistical date to ascertain cost.

Explain Opportunity Cost and Differential Cost.

Opportunity Cost is the cost incurred by the organisation when one alternative is selected over another. For example: A person has Rs. 100000 and he has two options to invest his money, either invests in fixed deposit scheme or buy a land with the money. If he decides to put is money to buy the land then the loss of interest which he could have received on fixed deposit would be an opportunity cost.

Differential Cost is the difference between the costs of two alternatives. It includes both cost increase and cost decrease. It can be either variable or fixed. Example: Cost of first alternative = 10000; Cost of second alternative = 5000; Differential Cost = 10000 – 5000 = 5000

Depreciation

What is depreciation? What are the causes of depreciation? Is it a cost? Why?What is the need of depreciation account?What is the effect of depreciation of assets on profits received by owners?..................

Basics financial accounting

Explain the following: a)Business Entity Concept b)Dual Aspect Concept c)Going Concern Concept d)Accounting Period Concept e)Cost Concept f)Money Measurement Concept g)Marketing Concept................

[Editor's note: If you recently lost your job, take a look at Wise Bread's collection of tips and resources for the recently laid off.]Let's face it; no one likes the interview process. Well, certainly not the people being interviewed anyway. You have to be on your best behavior, you only get one chance to get it right, and it's like taking your driving test all over again. Over the years I've been to countless interviews. To get my first job out of college I attended some 15-20 interviews a week. Whether it was in Britain or over here in the States, the questions never really seemed to change from job to job. Not only that, but the answers to them are usually the same, with your own personal interpretation of course. Here I present 23 questions you're likely to be asked, and how I have learned to answer them. Why 23? Because I had more than 20 and less than 25. Remember, being interviewed is a skill, and if you do the preparation you should ace it every time. (See also: 12 Unique Ways to Score a Job Interview)1. So, tell me a little about yourself.

I'd be very surprised if you haven't been asked this one at every interview. It's probably the most asked question because it sets the stage for the interview and it gets you talking. Be careful not to give the interviewer your life story here. You don't need to explain everything from birth to present day. Relevant facts about education, your career and your current life situation are fine.

2. Why are you looking (or why did you leave you last job)?

This should be a straightforward question to answer, but it can trip you up. Presumably you are looking for a new job (or any job) because you want to advance your career and get a position that allows you to grow as a person and an employee. It's not a good idea to mention money here, it can make you sound mercenary. And if you are in the unfortunate situation of having been downsized, stay positive and be as brief as possible about it. If you were fired, you'll need a good explanation. But once again, stay positive.3. Tell me what you know about this company.

Do your homework before you go to any interview. Whether it's being the VP of marketing or the mailroom clerk, you should know about the company or business you're going to work for. Has this company been in the news lately? Who are the people in the company you should know about? Do the background work, it will make you stand out as someone who comes prepared, and is genuinely interested in the company and the job.

4. Why do you want to work at X Company?

This should be directly related to the last question. Any research you've done on the company should have led you to the conclusion that you'd want to work there. After all, you're at the interview, right? Put some thought into this answer before you have your interview, mention your career goals and highlight forward-thinking goals and career plans.

5. What relevant experience do you have?

Hopefully if you're applying for this position you have bags of related experience, and if that's the case you should mention it all. But if you're switching careers or trying something a little different, your experience may initially not look like it's matching up. That's when you need a little honest creativity to match the experiences required with the ones you have. People skills are people skills after all, you just need to show how customer service skills can apply to internal management positions, and so on.

6. If your previous co-workers were here, what would they say about you?

Ok, this is not the time for full disclosure. If some people from your past are going to say you're a boring A-hole, you don't need to bring that up. Stay positive, always, and maybe have a few specific quotes in mind. "They'd say I was a hard worker" or even better "John Doe has always said I was the most reliable, creative problem-solver he'd ever met."

7. Have you done anything to further your experience?

This could include anything from night classes to hobbies and sports. If it's related, it's worth mentioning. Obviously anything to do with further education is great, but maybe you're spending time on a home improvement project to work on skills such as self-sufficiency, time management and motivation.

8. Where else have you applied?

This is a good way to hint that you're in demand, without sounding like you're whoring yourself all over town. So, be honest and mention a few other companies but don't go into detail. The fact that you're seriously looking and keeping your options open is what the interviewer is driving at.

9. How are you when you're working under pressure?

Once again, there are a few ways to answer this but they should all be positive. You may work well under pressure, you may thrive under pressure, and you may actually PREFER working under pressure. If you say you crumble like aged blue cheese, this is not going to help you get your foot in the door.

10. What motivates you to do a good job?

The answer to this one is not money, even if it is. You should be motivated by life's noble pursuits. You want recognition for a job well done. You want to become better at your job. You want to help others or be a leader in your field.

11. What's your greatest strength?

This is your chance to shine. You're being asked to explain why you are a great employee, so don't hold back and stay do stay positive. You could be someone who thrives under pressure, a great motivator, an amazing problem solver or someone with extraordinary attention to detail. If your greatest strength, however, is to drink anyone under the table or get a top score on Mario Kart, keep it to yourself. The interviewer is looking for work-related strengths.

12. What's your biggest weakness?

If you're completely honest, you may be kicking yourself in the butt. If you say you don't have one, you're obviously lying. This is a horrible question and one that politicians have become masters at answering. They say things like "I'm perhaps too committed to my work and don't spend enough time with my family." Oh, there's a fireable offense. I've even heard "I think I'm too good at my job, it can often make people jealous." Please, let's keep our feet on the ground. If you're asked this question, give a small, work-related flaw that you're working hard to improve. Example: "I've been told I occasionally focus on details and miss the bigger picture, so I've been spending time laying out the complete project every day to see my overall progress."

13. Let's talk about salary. What are you looking for?

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Run for cover! This is one tricky game to play in an interview. Even if you know the salary range for the job, if you answer first you're already showing all your cards. You want as much as possible, the employer wants you for as little as you're willing to take. Before you apply, take a look at salary.com for a good idea of what someone with your specific experience should be paid. You may want to say, "well, that's something I've thought long and hard about and I think someone with my experience should get between X & Y." Or, you could be sly and say, "right now, I'm more interested in talking more about what the position can offer my career." That could at least buy you a little time to scope out the situation. But if you do have a specific figure in mind and you are confident that you can get it, I'd say go

for it. I have on many occasions, and every time I got very close to that figure (both below and sometimes above).

14. Are you good at working in a team?

Unless you have the I.Q. of a houseplant, you'll always answer YES to this one. It's the only answer. How can anyone function inside an organization if they are a loner? You may want to mention what part you like to play in a team though; it's a great chance to explain that you're a natural leader.

15. Tell me a suggestion you have made that was implemented.

It's important here to focus on the word "implemented." There's nothing wrong with having a thousand great ideas, but if the only place they live is on your notepad what's the point? Better still, you need a good ending. If your previous company took your advice and ended up going bankrupt, that's not such a great example either. Be prepared with a story about an idea of yours that was taken from idea to implementation, and considered successful.

16. Has anything ever irritated you about people you've worked with?

Of course, you have a list as long as your arm. But you can't say that, it shows you as being negative and difficult to work with. The best way to answer this one is to think for a while and then say something like "I've always got on just fine with my co-workers actually."

17. Is there anyone you just could not work with?

No. Well, unless you're talking about murderers, racists, rapists, thieves or other dastardly characters, you can work with anyone. Otherwise you could be flagged as someone who's picky and difficult if you say, "I can't work with anyone who's a Bronco's fan. Sorry."

18. Tell me about any issues you've had with a previous boss.

Arrgh! If you fall for this one you shouldn't be hired anyway. The interviewer is testing you to see if you'll speak badly about your previous supervisor. Simply answer this question with extreme tact, diplomacy and if necessary, a big fat loss of memory. In short, you've never had any issues.

19. Would you rather work for money or job satisfaction?

It's not a very fair question is it? We'd all love to get paid a Trump-like salary doing a job we love but that's rare indeed. It's fine to say money is important, but remember that NOTHING is more important to you than the job. Otherwise, you're just someone looking for a bigger paycheck.

20. Would you rather be liked or feared?

I have been asked this a lot, in various incarnations. The first time I just drew a blank and said, "I don't know." That went over badly, but it was right at the start of my career when I had little to no experience. Since then I've realized that my genuine answer is "Neither, I'd rather be respected." You don't want to be feared because fear is no way to motivate a team. You may got the job done but at what cost? Similarly, if you're everyone's best friend you'll find it difficult to make tough decisions or hit deadlines. But when you're respected, you don't have to be a complete bastard or a lame duck to get the job done.

21. Are you willing to put the interests of X Company ahead of your own?

Again, another nasty question. If you say yes, you're a corporate whore who doesn't care about family. If you say no, you're disloyal to the company. I'm afraid that you'll probably have to say yes to this one though, because you're trying to be the perfect employee at this point, and perfect employees don't cut out early for Jimmy's baseball game.

22. So, explain why I should hire you.

As I'm sure you know, "because I'm great" or "I really need a job" are not good answers here. This is a time to give the employer a laundry list of your greatest talents that just so happen to match the job description. It's also good to avoid taking potshots at other potential candidates here. Focus on yourself and your talents, not other people's flaws.

23. Finally, do you have any questions to ask me?

I'll finish the way I started, with one of the most common questions asked in interviews. This directly relates to the research you've done on the company and also gives you a chance to show how eager and prepared you are. You'll probably want to ask about benefits if they haven't been covered already. A good generic one is "how soon could I start, if I were offered the job of course." You may also ask what you'd be working on. Specifically, in the role you're applying for and how that affects the rest of the company. Always have questions ready, greeting this one with a blank stare is a rotten way to finish your interview. Good luck and happy job hunting.

Explain Financial Accounting. What are its characteristic features?

Financial Accounting is the process in which business transactions are recorded systematically in the various books of accounts maintained by the organization in order to prepare financial statements. These financial statements are basically of two types: First is Profitability Statement or Profit and Loss Account and second is Balance Sheet.

Following are the characteristics features of Financial Accounting:1) Monetary Transactions: In financial accounting only transactions in monetary terms are considered. Transactions not expressed in monetary terms do not find any place in financial accounting, howsoever important they may be from business point of view.2) Historical Nature: Financial accounting considers only those transactions which are of historical nature i.e the transaction which have already taken place. No futuristic transactions find any place in financial accounting, howsoever important they may be from business point of view.3) Legal Requirement: Financial accounting is a legal requirement. It is necessary to maintain the financial accounting and prepare financial statements there from. It is also obligatory to get these financial statements audited.4) External Use: Financial accounting is for those people who are not part of decision making process regarding the organization like investors, customers, suppliers, financial institutions etc. Thus, it is for external use.5) Disclosure of Financial Status: It discloses the financial status and financial performance of the business as a whole.6) Interim Reports: Financial statements which are based on financial accounting are interim reports and cannot be the final ones.7) Financial Accounting Process: The process of financial accounting gets affected due to the different accounting policies followed by the accountants. These accounting policies differ mainly in two areas: Valuation of inventory and Calculation of depreciation.

Compare Financial Accounting and Cost Accounting.

1) Financial Accounting protects the interests of the outsiders dealing with the organization e.g shareholders, creditors etc. Whereas reports of Cost Accounting is used for the internal purpose by the management to enable the same in discharging various functions in a proper manner.

2) Maintenance of Financial Accounting records and preparation of financial statements is a legal requirement whereas Cost Accounting is not a legal requirement. 

3) Financial Accounting is concerned about the calculation of profits and state of affairs of the organization as whole whereas Cost accounting deals in cost ascertainment and calculation of profitability of the individual products, departments etc. 

4) Financial Accounting considers only transactions of historical financial nature whereas Cost Accounting considers not only historical data but also future events.

5) Financial Accounting reports are prepared in the standard formats in accordance with GAAP whereas Cost accounting information is reported in whatever form management wants

What are the various systems of Accounting? Explain them.

There are two systems of Accounting:

1) Cash System of Accounting: This system records only cash receipts and payments. This system assumes that there are no credit transactions. In this system of accounting, expenses are considered only when they are paid and incomes are considered when they are actually received. This system is used by the organizations which are established for non profit purpose. But this system is considered to be defective in nature as it does not show the actual profits earned and the current state of affairs of the organization.

2) Mercantile or Accrual System of Accounting: In this system, expenses and incomes are considered during that period to which they pertain. This system of accounting is considered to be ideal but it may result into unrealized profits which might reflect in the books of the accounts on which the organization have to pay taxes too. All the company forms of organization are legally required to follow Mercantile or Accrual System of Accounting.

What are the important things to be remembered while preparing a bank reconciliation statement?

While preparing a bank reconciliation statement following important points need to be remembered:

* Bank Reconciliation Statement is prepared either by starting with the Bank pass book balance or Cash book balance.* If the balance of the Cash book is taken as a starting point then Cash book balance is to be adjusted in accordance with the entries passed in the Bank pass book and vice versa. For example: If the balance is taken as per the Cash book then the following items will be added:* Cheques issued but not presented for payment;* Amount credited in Passbook but not in Cash book;* Deposits made in the bank directly;* Wrong credits given by bank;* Interest credited in the Passbook.

The following items will be subtracted:

* Cheques deposited but not cleared;* Interest/Bank Charges debited by bank* Direct payments made by bank not entered in Cash book* Cheques dishonoured not recorded in cash book* Wrong debits given by bank* If it is prepared with the Bank balance as per the bank passbook, then the above procedure will be reversed i.e the items will be added to the pass book which were deducted

from the cash book balance and those items will be deducted from the bank pass book balance which were added to the cash book balance.

What is cost accountancy? What are the objects of Cost Accountancy?

Cost accountancy is the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and the ascertainment of profitability as well as the presentation of information for the purpose of managerial decision making.

Following are the objects of Cost Accountancy:

-Ascertainment of Cost and Profitability-Determining Selling Price-Facilitating Cost Control-Presentation of information for effective managerial decision-Provide basis for operating policy-Facilitating preparation of financial or other statements

What is capitalization? What is its importance?

Capitalization is a term which has different meanings in both financial and accounting context. Capitalization in accounting means the cost to buy an asset which is included in the price of the asset whereas in financial terms it is the cost which is required to buy an asset which includes price of a particular asset and it also include the retained earnings of a company with stock debt and long term debt. There are two kinds of capitalization which are called as Over-capitalization and another is called as Under-capitalization. Capitalization is very import aspect in determining the value of the company in the market which is based on the economic structure of the company. This aspect depends on the previous records and economics of the company. This also shows a particular behaviour of the companies’ structure and allows them to create a plan to do the marketing.   

Budgetary control

What are the advantages of Budgetary Control?What are the pre-requisites to implement Budgetary Control?  What are the major categories under which budgets are divided?

Basics financial accounting

Explain the following: a)Business Entity Concept b)Dual Aspect Concept c)Going Concern Concept d)Accounting Period Concept e)Cost Concept f)Money Measurement Concept g)Marketing Concept................

Expenditures

What are capital expenditures? Is it Ok to consider these expenditures while calculating the profitability of during a certain period? Explain your answer.

Explain deferred expenditures. How are these expenses dealt with in profitability statement?.........................

Types of Accounts

Explain Real Accounts. List different accounts consisting real accounts in practical circumstances............