Find Interview Questions for African export-import bank (afreximbank)

Right Answer:
The tax slab for salaried individuals in India for the financial year 2023-24 is as follows:

1. Income up to ₹2.5 lakh: Nil
2. Income from ₹2,50,001 to ₹5,00,000: 5%
3. Income from ₹5,00,001 to ₹10,00,000: 20%
4. Income above ₹10,00,000: 30%

Additionally, there is a rebate under Section 87A for individuals with income up to ₹5 lakh.

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Partnership accounting is the process of recording and managing the financial transactions and statements of a partnership business, where two or more individuals share ownership and profits. It involves tracking each partner's capital contributions, profit and loss distribution, and withdrawals.

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In my last experience, I managed the accounts receivable process by tracking outstanding invoices, ensuring timely collections, and maintaining accurate records. I also collaborated with the sales team to resolve any billing discrepancies and improve cash flow.

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The tax to be treated in Om Logistics Ltd. would typically include Goods and Services Tax (GST) and Income Tax.

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Luca Pacioli is considered the father of accounting.

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Accounting principles, such as the Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), guide how assets, liabilities, and equity are recognized, measured, and reported on the balance sheet. They ensure consistency, reliability, and comparability in financial reporting, affecting how items are classified, valued, and presented.

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The Full Disclosure Principle requires companies to provide all relevant financial information and details that could affect users' understanding of their financial statements, ensuring transparency and completeness.

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The Conservatism Principle in accounting states that when faced with uncertainty, accountants should choose methods that minimize the overstatement of income or assets and the understatement of liabilities. This means recognizing expenses and liabilities as soon as possible, but revenues only when they are assured.

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The Economic Entity Assumption states that a business's financial activities must be kept separate from its owners' personal financial activities. This ensures that the financial statements reflect only the business's performance and position, providing clear and accurate information for decision-making.

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The Matching Principle in accounting states that expenses should be recorded in the same period as the revenues they help to generate. This is necessary to accurately reflect a company's financial performance and ensure that income statements provide a true picture of profitability during a specific time frame.

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A perpetual inventory system is a method of tracking inventory levels in real-time, updating records continuously as sales and purchases occur. Its aims are to provide accurate inventory data, improve stock management, reduce discrepancies, and enhance decision-making regarding inventory control.

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T sits to the right of U.

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a : b : c = 63 : 45 : 55.

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The rate of interest for debentures is decided by the issuing company based on market conditions, credit rating, and investor demand.

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The bank should carefully assess the risks and potential returns of offering loans to sub-prime borrowers, considering factors like default rates and overall market conditions. For the retail store client, analyze their financial situation, identify cost-cutting measures, and suggest strategies to increase sales, such as improving marketing or diversifying product offerings.

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Accelerated Cash Collection is a financial strategy aimed at speeding up the process of receiving payments from customers. This can involve various methods such as offering discounts for early payments, improving invoicing processes, and using electronic payment systems to reduce the time it takes to collect cash. The goal is to enhance cash flow and reduce the days sales outstanding (DSO).

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Bonus shares are additional shares given to existing shareholders for free, based on the number of shares they already own. The advantages for the company include improving liquidity in the market, enhancing shareholder satisfaction, and signaling financial strength without affecting cash reserves.

Right Answer:

A company can meet its fund needs through:

• Equity Capital: Issuing shares to investors

• Debt Capital: Borrowing via loans, bonds, or debentures

• Internal Funds: Retained earnings and reserves

• Trade Credit: Credit from suppliers

• Grants and Subsidies: From government or agencies

• Venture Capital and Angel Investors: For startups and growing firms

Right Answer:
A company holds cash for several reasons: to meet short-term obligations, to take advantage of investment opportunities, to maintain liquidity for operational needs, to manage unexpected expenses, and to ensure financial stability during economic fluctuations.

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Capital structure refers to the mix of debt and equity that a company uses to finance its operations and growth. The principles of capital structure management include:

1. **Cost of Capital**: Balancing the cost of debt and equity to minimize overall financing costs.
2. **Financial Flexibility**: Maintaining the ability to raise funds when needed without excessive risk.
3. **Risk Management**: Assessing and managing the financial risk associated with different levels of debt.
4. **Control**: Ensuring that equity financing does not dilute ownership and control of the company.
5. **Market Conditions**: Adapting the capital structure based on current market conditions and investor sentiment.