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QUESTIONS\n\n### 1.What does the inventory turnover ratio show?\n\nThe inventory turnover ratio is an efficiency ratio that shows how effectivelyinventory is managed by comparing the cost of goods sold with the averageinventory for a period.  \n### 2.What is the return on equity?\n\nReturn on equity(ROE)is a ratio that provides investors with insight into howefficiently a company is managing the equity that shareholders havecontributed to the company.  \nReturn on equity measures a corporation's profitability by revealing how muchprofit a company generates with the money shareholders have invested.  \nReturn on Equity =Net Income-Pref.dividend(if,any)/Shareholder's Equity.  \n### 3.What is the net worth of a company?\n\nNet worth is the amount by which assets exceed liabilities.Net worth is a  \nconcept applicable to individuals and businesses as a key measure of how muchan entity is worth.A consistent increase in net worth indicates good financialhealth  \n### 4.What is the operating cycle /Cash Conversion Cycle?\n\nThe operating cycle is also known as the cash conversion cycle.In the context ofa manufacturer,the operating cycle has been described as the amount of timethat it takes for a manufacturer's cash to be converted into products plus thetime it takes for those products to be sold and turned back into cash.  \n### 5.What is the difference between EBIT and EBITDA?Can EBIT be greaterthan EBIDTA?\n\nEBIT represents the approximate amount of operating income generated by abusiness,while EBITDA roughly represents the cash flow generated by theoperations of a business.  \n### 6.Distinguish between Budgeting and Forecasting?\n\nBudgeting and financial forecasting are financial planning techniques thathelp a business enterprise to achieve its desired levels of profits.  \nBudgeting uses estimation to quantify the desired levels of revenues,profits,and cash flows that a business wants to achieve for a future period,whereasfinancial forecasting is used to estimate the amount of revenues that will likelybe achieved.Budgeting essentially is a plan for where a business wants to go,whereas financial forecasting indicates where the business is headed given thescenario.  \nBudgeting is essentially planning whereas forecasting is estimating based onthe given indicators.Hence,forecasting would indicate whether budgets willbe achieved or not.  \n### 7.What is nifty and Sensex?\n\nSENSEX:  \nThe Sensex also called the BSE 30,is a stock market index of 30 well-established and financially sound companies listed on the Bombay StockExchange(BSE).  \n30 companies are selected based on the free float market capitalization.These are different companies from different sectors representing a sample oflarge,liquid,and representative companies  \nThe base year of Sensex is 1978-79 and the base value is 100.  \nIt is an indicator of market movement.If Sensex go up,it means that most of thestocks in India went up during the given period.  \nIf the Sensex goes down,this tells you that the stock price of most of the majorstocks on the BSE has gone down.  \nNIFTY  \nThe NIFTY50 index is the National Stock Exchange of India’s benchmark stockmarket  \nindex for the Indian equity market.Nifty is owned and managed by India IndexServices and Products(IISL).  \nThe base yearis taken as 1995 and the base value is set to 1000.Nifty is calculated on 50 stocks actively traded in the NSE  \n### 8.What are EPS and diluted EPS?\n\nEPS is the portion of a company's profit that is allocated to every individual shareof the stock.It is a term that is of much importance to investors and people whotrade in the stock market.The higher the earnings per share of a company,thebetter is its profitability.  \nEPS-PAT/TOTAL NO.O/S SHARES  \nDiluted EPS  \nDiluted EPS considers what would happen if dilutive securities were exercised.Dilutive securities are securities that are not common stock but can be convertedto common sto","cbCaiepTUddWZIMF","https://ap.wps.com/l/cbCaiepTUddWZIMF","pdf",2592676,37,"English","# GENERAL FINANCE QUESTIONS\n## 1. What does the inventory turnover ratio show?\n## 2. What is the return on equity?\n## 3. What is the net worth of a company?\n## 4. What is the operating cycle / Cash Conversion Cycle?\n## 5. What is the difference between EBIT and EBITDA? Can EBIT be greater than EBITDA?\n## 6. Distinguish between Budgeting and Forecasting?\n## 7. What is nifty and Sensex?\n## 8. What are EPS and diluted EPS?\n## 9. What is derivative\n## 10. What is option trading?\n## 11. Difference between call and put options?","[{\"question\":\"What does the inventory turnover ratio indicate?\",\"answer\":\"It is an efficiency ratio showing how effectively inventory is managed by comparing cost of goods sold with the average inventory over a period.\"},{\"question\":\"How is ROE interpreted for investors?\",\"answer\":\"Return on equity measures how efficiently a company manages shareholder equity by indicating the profitability generated from the money invested by shareholders.\"},{\"question\":\"What is the difference between call and put options?\",\"answer\":\"A call option gives the right to buy an underlying asset at a specified strike price within a certain time, while a put option gives the right to sell an underlying asset at the strike price.\"}]","Top 100 Most Asked Finance Interview Questions and Answers | PDF",1790353482,93]