Find Interview Questions for Chainalysis inc.

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Securities Transaction Tax (STT) is a tax levied on the transaction of securities traded on stock exchanges in India. It is applied to the purchase and sale of shares, derivatives, and other financial instruments.

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The expenditure incurred for the innovation of a guest house building is of capital nature.

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An imbalance in the debit and credit totals.

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Capital goods excise duty is allowed to be claimed as a credit in two installments: 50% in the first financial year and the remaining 50% in the next financial year. This staggered approach helps businesses manage cash flow and ensures that the benefit of the credit is spread over two periods.

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A Parked Report is a document in accounting that allows users to temporarily save a transaction for review or approval before it is officially posted to the financial system.

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The Matching Principle in accounting states that expenses should be recorded in the same period as the revenues they help to generate. This is necessary to accurately reflect a company's financial performance and ensure that income statements provide a true picture of profitability during a specific time frame.

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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.

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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 Conservatism Principle in accounting states that when faced with uncertainty, accountants should choose methods that minimize the overstatement of income or assets and the understatement of liabilities. This means recognizing expenses and liabilities as soon as possible, but revenues only when they are assured.

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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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Coded as CITOXE.

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The average of the first 10 odd numbers is 10.

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343 : 729 :: 125 : 216

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In my previous role, I worked with a colleague who seemed stressed during a project meeting. I noticed they were quiet and avoided eye contact. After the meeting, I approached them and asked if they needed help with their workload. They opened up about feeling overwhelmed and needing support. I offered to assist with their tasks, which helped alleviate their stress and improved our collaboration.

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

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Capitalization refers to the total amount of funds used to finance a company's operations, including debt and equity. It is important because it affects a company's financial structure, cost of capital, and ability to invest in growth opportunities.

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Combined leverage measures the total risk by considering both operating and financial leverage together. It shows how sales changes affect the company’s earnings per share (EPS).

Calculation:

$$\text{Combined Leverage}=\text{Operating Leverage}\times \text{Financial Leverage}$$

Where:

• Operating Leverage = % change in EBIT / % change in Sales

• Financial Leverage = % change in EPS / % change in EBIT

It helps assess overall business risk related to fixed costs and debt.

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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.

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The sources used for financing temporary requirements of working capital include:

1. Bank overdrafts
2. Short-term loans
3. Trade credit
4. Commercial paper
5. Factoring
6. Lines of credit

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A bank guarantee is a promise made by a bank to cover a loss if a borrower fails to fulfill their contractual obligations. It acts as a safety net for the party receiving the guarantee. When a bank issues a guarantee, it assures the beneficiary that they will receive payment or compensation up to a specified amount if the borrower defaults. The borrower typically pays a fee to the bank for this service. If the borrower fails to meet their obligations, the beneficiary can claim the amount from the bank, which will then seek reimbursement from the borrower.