All about MBA Finance

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Recommended Paid Certifications:
Finance – https://certifications.nism.ac.in/nismaol/
Marketing – https://www.cmpcert.com/courses/

Download Free courses drive:
https://drive.google.com/drive/folders/1WPcrq-g3VPCTeiP8Sm8Q_lrNR9Q-2lrN

Join courses online Free for proof

All the link for Finance Free courses:

1. Accounting and Finance (IIM Bangalore): https://www.edx.org/course/accounting-and-finance

2. Corporate Finance (IIM Bangalore): https://www.edx.org/course/corporate-finance-2

3. Banking and Finance (IIM Bangalore): https://www.edx.org/course/banking-financial-intermediation-concepts-risks-ca

4. Risk Management (IIM Bangalore): https://www.edx.org/course/risk-management-in-banking-and-financial-markets-p

5. Introduction to Investment (IIM Bangalore) :  https://www.edx.org/course/introduction-to-investments

6. Introduction to Corporate Finance (Columbia University) : https://www.edx.org/course/introduction-to-corporate-finance

7. Accounting and Financial Statements (Harvard University) : https://online-learning.harvard.edu/course/nonprofit-financial-stewardship-webinar-introduction-accounting-and-financial-statements?delta=0

Good and free Finance Courses for MBA Finance:

Must do Basic Level Free Finance Courses for MBA Finance

  1. Stock Markets for Beginners: https://www.udemy.com/course/the-beginners-guide-to-the-stock-market/
  2. How to read a BalanceSheet: https://www.udemy.com/course/balance-sheet/
  3. Basics of Finance: https://www.udemy.com/course/finance-101/

Other High Level Free Finance Courses for MBA Finance

  1. Introduction to Corporate Finance (M&A): https://www.udemy.com/course/introduction-to-corporate-finance/
  2. Finance Trading for Beginners: https://www.udemy.com/course/trading-for-beginners-tier-1/
  3. Introduction to Financial Accounting: https://www.udemy.com/course/introduction-to-financial-accounting-course/
  4. M&A Analyst: https://www.udemy.com/course/become-an-ma-analyst-the-complete-skillset-free-series/
  5. Financial Modelling: https://www.udemy.com/course/beginner-to-pro-in-excel-financial-modeling-and-valuation/
  6. BitCoins: https://www.udemy.com/course/bitcoin-or-how-i-learned-to-stop-worrying-and-love-crypto/

 

Interview Questions for MBA Finance

Important interview questions for finance
Scope of finance function
The main objective of financial management is to arrange sufficient finance for meeting short-term and long-term needs. With these things in mind, a Financial Manager will have to concentrate on the following areas of finance function.
1.Estimating Financial Requirements
2.Deciding Capital Structure
3.Selecting a Source of Finance
4.Selecting a pattern of investment
5.Proper Cash Management
6.Implementing Financial Controls
7.Proper Use of Surpluses / profits

What is Short Mid and Long term Investment
Types of trading and investing are often split up in this way:
Day Trading – trades are opened and closed within a day. No positions are carried over night. Short term for a day trader is seconds or minutes. Medium term is tens of minutes to maybe an hour or so. Long term is hours.
Short-Term Trading – trades last from part of a day up to several days. Short term will be a few hours to maybe one or two days. Medium term will be a few days. Long term will be several days to maybe a couple of weeks.
Position/Swing Trading – trades last from several weeks to several months and may even be held for a few years at the outside. Short term will be a week or more. Medium term will be several weeks to a month or more. Long term will be several months out to a year or more.
Long Term Investing – Investments last from a few years to many years. Short term will be a few years. Medium term will be a few years out to maybe a decade. Long term will be a decade to several decades.

What is ‘Net Present Value – NPV’
Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyze the profitability of a projected investment or project.
A positive net present value indicates that the projected earnings generated by a project or investment (in present dollars) exceeds the anticipated costs (also in present dollars). Generally, an investment with a positive NPV will be a profitable one and one with a negative NPV will result in a net loss. This concept is the basis for the Net Present Value Rule, which dictates that the only investments that should be made are those with positive NPV values.

What is ‘Capital Expenditure (CAPEX)’
Capital expenditure, or CapEx, are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. It is often used to undertake new projects or investments by the firm. This type of outlay is also made by companies to maintain or increase the scope of their operations. These expenditures can include everything from repairing a roof to building, to purchasing a piece of equipment, or building a brand new factory.

What is a ‘Balance Sheet’
A balance sheet is a financial statement that summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by shareholders.
The balance sheet adheres to the following formula:
Assets = Liabilities + Shareholders’ Equity

What is the ‘Profit and Loss Statement (P&L)’
A profit and loss statement (P&L) is a financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time, usually a fiscal quarter or year. These records provide information about a company’s ability – or lack thereof – to generate profit by increasing revenue, reducing costs, or both. The P&L statement is also referred to as “statement of profit and loss”, “income statement,” “statement of operations,” “statement of financial results,” and “income and expense statement.”

Cash Flow Statement (CFS)
Complementing the balance sheet and income statement, the cash flow statement (CFS) – a mandatory part of a company’s financial reports since 1987 – records the amount of cash and cash equivalents entering and leaving a company. The CFS allows investors to understand how a company’s operations are running, where its money is coming from, and how it is being spent. Here you will learn how the CFS is structured, and how to use it as part of your analysis of a company.

Cash Reserve Ratio (CRR)
CRR is a specified minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the central bank. CRR is set according to the guidelines of the central bank of a country.
Description: The amount specified as the CRR is held in cash and cash equivalents, is stored in bank vaults or parked with the Reserve Bank of India. The aim here is to ensure that banks do not run out of cash to meet the payment demands of their depositors. CRR is a crucial monetary policy tool and is used for controlling money supply in an economy. CRR specifications give greater control to the central bank over money supply. Commercial banks have to hold only some specified part of the total deposits as reserves. This is called fractional reserve banking.
SLR, CRR, RBI Repo Rate, Reverse Repo

What are Financial ratios
Financial ratios are relationships determined from a company’s financial information and used for comparison purposes. Examples include such often referred to measures as return on investment (ROI), return on assets (ROA), and debt-to-equity, to name just three. These ratios are the result of dividing one account balance or financial measurement with another. Usually these measurements or account balances are found on one of the company’s financial statements—balance sheet, income statement, cashflow statement, and/or statement of changes in owner’s equity. Financial ratios can provide small business owners and managers with a valuable tool with which to measure their progress against predetermined internal goals, a certain competitor, or the overall industry. In addition, tracking various ratios over time is a powerful means of identifying trends in their early stages. Ratios are also used by bankers, investors, and business analysts to assess a company’s financial status.

What are ‘Capital Markets’
Capital markets are markets for buying and selling equity and debt instruments. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.

Ques: I buy a piece of equipment, walk me through the impact on the 3 financial statements.
A: Initially, there is no impact (income statement); cash goes down, while balance sheet goes up, and the purchase of PP&E is a cash outflow (cash flow statement)
Over the life of the asset: depreciation reduces net income (income statement); Balance Sheet goes down by depreciation, while retained earnings go down (balance sheet); and depreciation is added back (because it is a non-cash expense that reduced net income) in the cash from operations section (cash flow statement).

Finance Job Description

In order to ensure your professional resume will support your goals, use this job description to inform what you should highlight on your resume.

Finance Job Description

  • Prepare balance sheets, profit and loss statements and other financial reports.
  • Analyzing trends, costs, revenues, financial commitments and obligations
  • Predict future revenues and expenses
  • Reports organization’s finances to management
  • Offers suggestions about resource utilization, tax strategies
  • Budget forecasts.

Roles and Responsibilities:

  • Prepare asset, liability and capital account entries by compiling and analyzing account information
  • Document financial transactions by entering account information
  • Recommend financial actions by analyzing accounting options
  • Summarize current financial status by collecting information; preparing balance sheet, profit and loss statement and other reports
  • Substantiate financial transactions by auditing documents
  • Maintain accounting controls by preparing and recommending policies and procedures
  • Guide accounting clerical staff by coordinating activities and answering questions
  • Reconcile financial discrepancies by collecting and analyzing account information
  • Secure financial information by completing database backups
  • Verify, allocate, post and reconcile transactions
  • Produce error-free accounting reports and present their results
  • Analyze financial information and summarise financial status
  • Provide technical support and advice on management
  • Review and recommend modifications to accounting systems and procedures
  • Participate in financial standards setting and in forecast process
  • Provide input into department’s goal setting process
  • Prepare financial statements and produce budget according to schedule
  • Direct internal and external audits to ensure compliance
  • Plan, assign and review staff’s work
  • Support month-end and year-end close process
  • Develop and document business processes and accounting policies to maintain and strengthen internal controls
  • Communicate effectively with clients
  • Contribute to a strong client relationship through positive interactions with client personnel
  • Communicate with Manager and/or Director on work status and client issues that arise

Skills Requirements:

  • Thorough knowledge of basic accounting procedures and principles
  • Awareness of business trends
  • Experience with creating financial statements
  • Experience with general ledger functions and the month-end/year end close process
  • Excellent accounting software user and administration skills
  • Accuracy and attention to detail
  • Aptitude for numbers and quantitative skills
  • Bachelor’s Degree in appropriate field of study or equivalent work experience
  • Intermediate understanding of accounting and reporting standards, gaining experience in researching as it relates to accounting issues
  • Accountant top skills & proficiencies:
  • Accounting
  • Corporate Finance
  • Reporting Skills
  • Attention to Detail
  • Deadline-Oriented
  • Reporting Research Results
  • Confidentiality
  • Time Management
  • Data Entry Management
  • Basic Math
  • Accuracy
  • Planning and Organizing
  • Scheduling and Monitoring
  • Communication Skills
  • Problem Analysis and Problem-Solving Skills
  • Initiative
  • Teamworkatant 10 questions for PI
  • GD skills

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