Find Interview Questions for Norges bank investment management

Right Answer:
Vouching is the process of verifying the authenticity and accuracy of financial transactions by examining supporting documents, such as invoices, receipts, and contracts, to ensure that they are recorded correctly in the accounts.

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Sales tax is a consumption tax imposed by the government on the sale of goods and services. It is usually calculated as a percentage of the purchase price and collected by the seller at the point of sale. The seller then remits the collected tax to the government. Sales tax rates can vary by state or locality.

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I have a strong understanding of accounting principles and extensive experience with SAP, which allows me to effectively manage financial data and streamline processes. My attention to detail and problem-solving skills enable me to contribute positively to your team and help achieve organizational goals.

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To perform ledger scrutiny, follow these steps:

1. **Review Transactions**: Check all entries in the ledger for accuracy and completeness. For example, in the rent ledger, verify that all rental payments are recorded with correct dates and amounts.

2. **Reconcile Balances**: Compare ledger balances with supporting documents. For share capital, ensure that the total shares issued match the amounts recorded in the ledger.

3. **Check for Consistency**: Look for any unusual or inconsistent entries. For instance, if rent payments vary significantly month-to-month without explanation, investigate further.

4. **Verify Documentation**: Ensure that all entries have appropriate supporting documents, such as invoices for rent or share certificates for capital.

5. **Analyze Trends**: Assess trends over time. For example, if share capital increases suddenly, check for new share issues or other explanations.

6. **Confirm Authorizations**: Ensure that all transactions are properly authorized. For rent, check lease agreements; for share capital,

Right Answer:
To evaluate the internal control audit, follow these steps:

1. **Understand the Control Environment**: Assess the organization's culture, governance, and ethical values.
2. **Identify Key Controls**: Determine which controls are critical for mitigating risks in financial reporting and compliance.
3. **Test Control Design**: Evaluate whether the controls are properly designed to prevent or detect errors and fraud.
4. **Test Control Operating Effectiveness**: Perform tests to see if the controls are functioning as intended over a period.
5. **Assess Risk**: Identify and evaluate risks associated with the controls and their impact on financial statements.
6. **Document Findings**: Record the results of your evaluation, including any deficiencies or areas for improvement.
7. **Report Recommendations**: Provide actionable recommendations to strengthen internal controls based on your findings.

Right Answer:
The Cost Principle states that assets should be recorded and valued at their original purchase cost, not their current market value. This means that the value of an asset on the balance sheet reflects the amount paid for it, which influences how assets are reported and affects financial statements.

Right Answer:
To ensure that financial reports adhere to ethical accounting principles, I follow these steps:

1. Maintain transparency by providing clear and accurate information.
2. Adhere to relevant accounting standards and regulations.
3. Implement internal controls to prevent fraud and errors.
4. Foster a culture of integrity and ethical behavior within the team.
5. Regularly review and audit financial reports for compliance and accuracy.

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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 Substance Over Form Principle means that the economic reality of a transaction should be reflected in financial statements, rather than just its legal form. This means recognizing the true nature of the transaction, such as treating a lease as a purchase if it effectively transfers ownership rights, ensuring that financial reporting accurately represents the underlying economic situation.

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The Accrual Principle states that revenue and expenses should be recorded when they are earned or incurred, regardless of when cash is actually received or paid. This differs from cash accounting, where transactions are recorded only when cash changes hands.

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The man's rate is 5 km/h.

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The time taken for the trains to cross each other is 12 seconds.

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To secure the engagement, emphasize your understanding of their business model, highlighting the importance of both upstream and downstream operations. Discuss how you can help optimize their revenue and profit strategies, particularly focusing on the upstream side where they generate most of their profits.

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The cistern will be full in 14 minutes.

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The golden rule of accounting is: "Debit the receiver, credit the giver."

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The different types of leases are:

1. **Operating Lease**: A short-term lease where the lessee uses the asset without ownership.
2. **Finance Lease (Capital Lease)**: A long-term lease that transfers ownership risks and rewards to the lessee.
3. **Sale and Leaseback**: The owner sells an asset and leases it back for continued use.
4. **Direct Financing Lease**: A lease where the lessor finances the asset and earns income from the lease payments.
5. **Leveraged Lease**: A lease where the lessor borrows funds to purchase the asset and leases it to the lessee.

Right Answer:
External factors that determine the dividend policy include:

1. Economic conditions
2. Industry trends
3. Tax policies
4. Regulatory environment
5. Market competition
6. Shareholder expectations
7. Availability of profitable investment opportunities
8. Company’s financial health and cash flow状况

Right Answer:
The Debt Equity Ratio is a financial metric that compares a company's total debt to its total equity. It is calculated using the formula:

**Debt Equity Ratio = Total Debt / Total Equity**

**Components:**
1. **Total Debt**: This includes all short-term and long-term liabilities.
2. **Total Equity**: This represents the shareholders' equity, which includes common stock, preferred stock, retained earnings, and additional paid-in capital.

**Indication**: The ratio indicates the proportion of debt used to finance the company's assets relative to equity. A higher ratio suggests more leverage and potentially higher financial risk, while a lower ratio indicates less reliance on debt.

Right Answer:
Compare Component Cost refers to the cost of individual components or parts of a product, while Composite Cost refers to the total cost that includes all components, labor, overhead, and other expenses associated with producing a complete product.

Right Answer:
**Advantages of Proprietary Firms:**
1. Easy to set up and operate.
2. Full control and decision-making power for the owner.
3. Simple tax structure; profits are taxed as personal income.
4. Minimal regulatory requirements.
5. Direct access to profits.

**Disadvantages of Proprietary Firms:**
1. Unlimited liability; personal assets are at risk.
2. Limited capital raising options.
3. Difficulty in transferring ownership.
4. Limited expertise; relies heavily on the owner's skills.
5. Continuity issues; business may cease if the owner dies or withdraws.