Find Interview Questions for Sbi capital markets

Right Answer:
C & F forms refer to "Consignment and Freight" forms used in India for the movement of goods. The C form is issued by a buyer to a seller for purchasing goods at a concessional rate of tax, while the F form is used to claim the tax exemption on inter-state sales of goods.

Right Answer:
Accounts receivable refers to the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Examples of accounts receivable include:
1. Invoices issued to customers for products sold.
2. Credit sales to retailers.
3. Services rendered to clients with payment due.
4. Installment payments for large purchases.
5. Subscription fees billed to customers.
6. Amounts due from distributors for merchandise sold.
7. Unpaid bills for consulting services.
8. Loans made to customers that are to be repaid.
9. Sales made on credit to government agencies.
10. Amounts owed from franchisees for royalties or fees.

Right Answer:
You can check whether TDS was deducted from an invoice by reviewing the invoice itself for a TDS deduction mention, checking the payment details for TDS entries, or referring to the TDS certificate (Form 16A) issued by the deductor.

Right Answer:
TDS stands for Tax Deducted at Source. It is a tax that is deducted from payments made to individuals or businesses at the time of payment, rather than at the end of the financial year. TDS is charged on various types of income, such as salaries, interest, rent, and professional fees, based on specified rates set by the government.

Right Answer:
The main accounting standards used in accounts are Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).

Right Answer:
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.

Right Answer:
The Prudence Principle emphasizes being cautious in financial reporting, ensuring that assets and income are not overstated, while liabilities and expenses are not understated. Conservatism, on the other hand, is a broader accounting approach that advises recognizing potential losses and liabilities as soon as they are foreseeable, but only recognizing gains when they are realized. In practice, both aim to avoid overestimating financial health, but prudence focuses more on caution in estimates, while conservatism emphasizes a more general approach to recognizing uncertainties.

Right Answer:
Generally Accepted Accounting Principles (GAAP) are the accounting standards used in the United States, while International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) are used in many other countries. The relationship between them is that both aim to provide a framework for financial reporting, but they differ in specific rules and guidelines. Efforts are ongoing to converge GAAP and IFRS to create a more unified global accounting standard.

Right Answer:
The basic accounting principles every accountant should know are:

1. **Accrual Principle**: Revenue and expenses are recorded when they are earned or incurred, not when cash is exchanged.
2. **Consistency Principle**: Once an accounting method is adopted, it should be used consistently throughout unless a change is warranted.
3. **Going Concern Principle**: Assumes that a business will continue to operate indefinitely unless there is evidence to the contrary.
4. **Matching Principle**: Expenses should be matched with the revenues they help to generate in the same period.
5. **Economic Entity Assumption**: The transactions of a business must be kept separate from those of its owners or other businesses.
6. **Full Disclosure Principle**: All relevant financial information must be disclosed in the financial statements.
7. **Materiality Principle**: All significant information that could influence decisions should be disclosed, while insignificant details can be omitted.
8. **Historical Cost Principle**: Assets should be recorded at their original

Right Answer:
The Monetary Unit Assumption states that financial transactions should be recorded in a stable currency, allowing for consistent measurement and comparison of financial data over time. This impacts financial record-keeping by ensuring that all financial statements are presented in a uniform currency, simplifying analysis and reporting.

Right Answer:
The amount invested in scheme B is Rs. 1000.

Right Answer:
X's present age is 35 years.

Right Answer:
The total amount that Rajan paid as interest is Rs. 1710.

Right Answer:
Capital market refers to a financial market where long-term debt or equity-backed securities are bought and sold. Companies raise funds in the capital market by issuing stocks (equity) or bonds (debt) to investors, allowing them to obtain capital for growth and operations.

Right Answer:
Yes, the Union Budget 2017-18 is considered taxpayer-friendly because it introduced measures like increased tax slabs for individuals, reduced corporate tax rates for small businesses, and a focus on digital transactions, which aimed to simplify the tax structure and promote transparency.

Right Answer:
A company may carry inventory in the following forms:

1. Raw materials
2. Work-in-progress (WIP)
3. Finished goods
4. Maintenance, repair, and operations (MRO) supplies
5. Goods in transit

Right Answer:
Cost of capital is the rate of return that a company needs to earn on its investments to maintain its market value and attract funds. It is important because it serves as a benchmark for evaluating investment opportunities, helps in budgeting and financial planning, and influences decisions on financing and capital structure.

Right Answer:
Fund-based lending refers to the provision of loans or credit by banks that involves the actual disbursement of funds to borrowers. The various forms of fund-based lending by banks include:

1. Term Loans
2. Working Capital Loans
3. Overdraft Facilities
4. Cash Credit
5. Demand Loans
6. Bill Discounting

Right Answer:
If the issue is greater than Rupees 100 crore, the company needs to comply with regulatory requirements, which may include obtaining approval from the board of directors, filing a prospectus with the Securities and Exchange Board of India (SEBI), and ensuring proper disclosures to investors.

Right Answer:
Secured loans are loans backed by collateral, meaning the borrower offers an asset (like a house or car) that the lender can claim if the loan is not repaid. Unsecured loans, on the other hand, are not backed by any collateral, relying solely on the borrower's creditworthiness for approval and repayment.