Basic Finance Interview Questions

They are some basic finance interview questions that can be asked in every finance interview during in technical rounds.

What are the difference between profit & loss account & income and expenditure accounts?

Profit & Loss Account:
Profit and loss account is prepared to know the present status of the company. the profit and loss account is prepared to know profit or loss of any organization. It is the accounts prepared during in the final accounts of the company

Income And Expenditure Account:
Usually income and expenditure account is prepared by the nonprofit organizations to know there income & expenditure status

Example: trusts, old ages,
Difference Between Journal Entry & Ledger?

Journal Entry:
a journal entry is the book of primary entry. Based on the journal entries it is recorded in the ledger accounts. The following steps are used in books of accounts:

1)    Journal entry
2)    Posting in ledger accounts
3)    Preparing of trail balance
4)    Final accounts

What Is A Trail Balance?
A trail balance includes the list of credit & debit balances, which all are taken from the ledger accounts. Usually trail balances are prepared before final accounts.

What Are The Differences Between Trading & De mat accounts:
A trading account is an account that allows you buy or sell shares of any company which are listed in stock exchange

Usually de mat account includes all the shares bought by you. It is just like a bank account. In bank account you can deposit cash but in case of de mat you will deposit shares. The deposited shares can sell any time

What Is EFT ?
Eft means electronic fund transfer from one bank to another bank without any paperless work

What Is Inflation?
In general,economics, the inflation arises when the price of goods or services are gone up and the power of purchasing is fallen

So prepare the above Basic finance interview questions that may help you to succeed in the finance interviews