Find Interview Questions for Bajaj capital ltd

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Working capital is the difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

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The length of the platform is 240 meters.

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

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The person is 5 km away from the initial position.

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

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The accounting system should ideally facilitate all specialties equally, but it may lean towards financial accounting as it is often the primary focus for external reporting.

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In inflationary conditions, money serves as a significant motivator because it affects purchasing power. As prices rise, individuals and businesses need more money to maintain their standard of living and cover costs. This can drive demand for higher wages and increased sales, motivating people to work harder or seek better-paying jobs to keep up with inflation. Additionally, businesses may be motivated to raise prices to maintain profit margins, further influencing economic behavior.

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Phantom gain refers to an increase in the value of an asset that is not realized through a sale or transaction, often due to inflation or changes in market conditions, leading to a perceived profit that does not result in actual cash flow.

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Source documents in accounting are original records that provide evidence of a financial transaction. Examples include invoices, receipts, bank statements, and contracts.

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VAT, or Value Added Tax, is a type of indirect tax that is applied to the sale of goods and services at each stage of production or distribution. It is collected by businesses on behalf of the government and is based on the value added to the product at each stage.

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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 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 Revenue Recognition Principle states that revenue should be recognized when it is earned and realizable, regardless of when cash is received. This means that businesses record revenue when they deliver goods or services, not necessarily when payment is made. Its importance lies in providing a clear and consistent method for reporting income, which helps ensure accurate financial statements and allows stakeholders to assess a company's performance effectively.

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The Revenue Recognition Principle impacts profit calculations by ensuring that revenue is recognized when it is earned, regardless of when cash is received. This means profits reflect the actual performance of a business during a specific period, aligning income with the expenses incurred to generate that income.

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The Historical Cost Principle states that assets should be recorded and reported at their original purchase price, rather than their current market value. This principle is relevant in financial reporting as it provides consistency and reliability in financial statements, allowing users to compare financial information over time without the influence of market fluctuations.

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The Modigliani-Miller (M&M) approach is a theory in corporate finance that states that, under certain conditions, a firm's value is unaffected by its capital structure (the mix of debt and equity financing). This means that the way a company finances itself does not impact its overall value or the cost of capital, assuming no taxes, bankruptcy costs, or asymmetric information.

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Sources of funds are categorized as inflows, such as new loans, equity financing, or sales revenue, while applications of funds are categorized as outflows, such as loan repayments, asset purchases, or operating expenses.

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Merchant banks perform several functions when a company wants to raise funds from intermediaries, including:

1. **Advisory Services**: Providing guidance on the best methods to raise capital.
2. **Underwriting**: Guaranteeing the sale of securities by purchasing them and reselling to the public.
3. **Syndication**: Organizing a group of banks or investors to share the risk of financing.
4. **Placement**: Finding investors to buy the securities directly.
5. **Valuation**: Assessing the company's worth to determine the appropriate pricing of securities.
6. **Regulatory Compliance**: Ensuring that all legal and regulatory requirements are met during the fundraising process.

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Capital Rationing is the process of allocating a limited amount of capital to various investment projects or opportunities, prioritizing those that offer the highest returns or strategic value. The normal procedure for capital rationing typically involves the following steps:

1. Identify potential investment projects.
2. Estimate the cash flows and returns for each project.
3. Rank the projects based on their profitability or strategic alignment.
4. Set a budget limit for total capital expenditure.
5. Select the combination of projects that maximizes returns within the budget constraint.

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If turnover is not announced annually, it can lead to a lack of transparency, difficulty in assessing company performance, challenges in financial planning and budgeting, reduced investor confidence, and potential issues with compliance and regulatory requirements.