Question 1

The primary purpose of life insurance is to provide

Accepted Answer

The primary purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured.

Question 2

Describe account receivable?

Accepted Answer

Accounts Receivable means the amount which comes in to the business Eg: If the trader made sales to the customer then obviously the trader will received the amount for the sales made So here the amount which comes in is said to be accouts receivable

Question 3

What are the components or materials used by Accounts receivable departments?

Accepted Answer

Accounts Receivable department is very important department of the company The responsbilities of the department is approval of credit limit to the customer study the past history of customer credit sending invoices to the customer updation of the customer credit data factoring contacts with the factoring agents follow up of customers motivating the customers to pay the dues intime and communicating the information to the management Credit sales data estimation of credit sales for the future period request for funds to finance department whenever they required follow up of customers receivables management

Question 4

Explain What is the difference between debenture holders and creditors?

Accepted Answer

Debenture holder are those who provides long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods

Question 5

What is reconciliation?

Accepted Answer

You should have recorded in your cash books all amounts you?ve actually received and payments you?ve actually made However, the cash books may be incomplete as your bank may have put extra transactions through your account, such as: bank fees or interest charges direct debits (payments) and direct credits (receipts) Doing a regular bank reconciliation will allow you to: take into account any extra transactions your bank puts through your account, and check and record any errors or omissions By regularly doing a bank reconciliation (say monthly) you can be more confident that your records contain all the information you need to prepare your income tax return and activity statements reconciliation- This is a statement prepared to find the reason for difference in any two balance eg 1)bank reconciliation is prepared to find the reason of difference between the passbook & cash book balance 2)Stock reconciliation is prepared to the reason of difference between the physical balance & book balance or to find the stock balance as on certain date etc

Question 6

What do you mean by Credit Management under AR in Professional field?

Accepted Answer

Credit Management is the process of managing the outstanding receivables of the organistion as per the policies adopted by the organisation Companies might the approach of categorising the B/R by their ageing and provision for the same would be taken into account while preparing the financial statements for an organisation

Question 7

What is factoring?

Accepted Answer

Selling the rights to the amounts owing by debtors to a finance company for an agreed amount (which is less than the figure at which they are recorded in the accounting books because the finance company needs to be paid for providing the service)

Question 8

Explain What is Customer Master record?

Accepted Answer

A Customer Master Record is a permanent record that contains key information about a business partner or a material This information must be entered into the system before any transactions can take place involving the business partner [customer] or a material Entering all the information about a customer or a material into the system before making transactions insures that subsequent transactions or inquiries will have consistent data and reports and analyses can be done in an orderly way Master Records can be edited or changed when necessary Changing master records is frequently called "Maintaining" in SAP

Question 9

What is the Auto Invoice? What are the setup Steps for Auto Invoice?

Accepted Answer

A powerful tool to import and validate transaction data from other financial systems and create invoices , debit memos , credit memos and on-account credits Setup steps: 1 Define the line ordering rules 2 Define the grouping rules - attache the line ordering rules to the grouping rules

Question 10

Who is responsible for maintaining the Accounts receivable in an organization?

Accepted Answer

Accountants in big organization there will be a department to maintain AR department

Question 11

Which of the following statements about market segmentation is true?

Accepted Answer

It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants.

Question 12

When an account becomes uncollectible and must be written off

Accepted Answer

Accounts Receivable should be credited

Question 13

Which of the following is not economic investment?

Accepted Answer

the purchase of 100 shares of AT&T by a retired business executive

Question 14

In a general sense, "cash flow" can be said to equal

Accepted Answer

operating income after taxes minus depreciation

Question 15

Credit sales are recorded as

Accepted Answer

Accounts Receivable

Question 16

What is commercial Bank ?

Accepted Answer

A commercial bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the public

Question 17

What is the difference between Private bank and Nationalized bank?

Accepted Answer

Nationalized banks are also known as public sector banks where the government is responsible for the deposition of money in these banks while in a private bank money is deposited by the person who owns the bank

Question 18

Why do you think you’re suited to a career in investment banking?

Accepted Answer

As you’re interested in a career in banking, plenty of reasons should spring to mind, and if they don’t you should consider choosing another path! Often students are attracted to the intellectual challenges and high-profile nature of the dealings of the finance world, the fast pace of the work here, and the rewards on offer, all of which are very valid reasons for applying to a bank But they’re also valid reasons for applying for jobs in other parts of the finance world, so make sure you explain why you want a job at a bank, and in your chosen area in particular Perhaps you’re keen for the broad and deep financial training and prestigious experience that only a leading bank can offer? Your interviewers may also ask if anything puts you off banking If you have any real doubts, an interview is not the place to air them, but it’s a great idea to show that you’ve considered the difficulties the industry is currently going through before choosing to make an application You might say that you’re attracted to the particular professional challenges and opportunities a period of flux in an industry can offer

Question 19

What do you think you will be doing during your first year in investment banking?

Accepted Answer

Much of your answer to this question will depend on your role – so do some careful research into your chosen department In M&A, you might spend much of your time on financial models related to the deals you’re working on, while in a trading role you might start out by assisting more senior members of the team before being given the chance to manage a trading book yourself Beyond that, it’s important to show that you’ll be keen to take on responsibilities, but that you also recognise that your first year is about learning the ropes, usually means include following instructions from others and completing some mundane tasks

Question 20

Explain our business model.

Accepted Answer

Banks provide their clients with advice, assistance in arranging financing, and other services, such as access to trading on the markets, investment management, and risk reduction Their main source of revenue is the fees they charge their clients for these services Some banks have departments which invest or trade the bank’s own money to generate returns, though the extent to which they can do so has become more limited in recent years

Accounting and Finance Questions