Following information you will find in this document.

- Rounds in Cognizant
- How to tell about yourself
- How to present well about your project.
- About youre Resume
- Finance and Accounting Concepts.
- General HR Questions
- About Cognizant History

I wish you all the Best for your Interview


Rounds in Cognizant

1. JAM ( Need to speak about your self and on any one topic like your favorite
Holiday, Memorable moment, Corruption, Education system, Role Model,
Etc
2. Written Test ( Note: This round may or may not be conducted. However, if
conducted they will check on Accounts ( Basics mostly Inter and B.com
Concepts is covered in this material, English Comprehension, Analytical test
of reasoning or case studies)
3. Technical Round: They will Tell about yourself, your project, Accounts and
finance concepts, Your resume, Experience if any, some general questions
discussed later and about cognizant.
4. HR: Similar to Technical round and it will be easy.
5. Document submission
6. Offer letter.




















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#1 Pdf Solutions


Tell Me About Yourself

I am XXXXXX and I am from Hyderabad location. I did my MBA from JNTU University
with Finance as specialization. I done my MBA final project on Cost Control
Analysis at Electronic Cooperation of India Limited. Objectives of my project are
to study cost control technique employed, cost accounting practices, cost control
analysis methods, Ascertainment and analysis of cost and income by product,
function and responsibility etc (Only example). My learnings are ..

My strengths and skills include Team Work, Good Communication Skills, Problem
Solving Skills, Time Management, Planning Skills. I would like to explain with
example: I am a good team player. Since school days, I did group studies or
combined studies with my friends. We used to divide and share the syllabus among
each other. Then we used explain to the group and listen from the group. This
helped me to understand the concepts well. That I continued in graduation and in
my MBA. And I play games like volleyball, basket ball where further improved on
my team skills.

Finally my career objective is to work for a growth oriented company where I will
have opportunities to work in the area of Finance. For next 2 to 3 years, i would
like to learn as much as I can and contribute for the growth of my organization.
Thank you

Tell briefly about your project at MBA

- Learn about Company Profile
- Major theme and Scope of your project
- Your Objectives
- Findings
- Suggestions






Note: Check the image and answer accordingly.


Check youre Resume/CV twice before you attend

Resume is one of the important weapon during the interview it play key role in
knowing about you by the HR. So just have a brief Idea upon your Resume like
career Objective, Your strengths, Hobbies and all the Information that you had
prepared on the resume.


What is Investment Banking

Is the term used to describe the business of raising capital for companies and
advising them on financing and merger alternatives. Capital essentially means
money. Companies need cash in order to grow and expand their businesses;
investment banks sell securities to public investors in order to raise this cash.
These securities can come in the form of stocks or bonds

What are securities
The term security was originally used to describe financial instruments secured by
physical assets. Securities are broadly categorized into:
Debt securities (such as banknotes, bonds and debentures),
Equity securities, e.g., common stocks; and,
Derivative contracts, such as forwards, futures, options and swaps.




What are financial Instruments?

A financial instrument is a tradable asset of any kind; either cash, evidence of an
ownership interest in an entity, or a contractual right to receive or deliver cash or
another financial instrument.
Financial instruments can be categorized by form depending on whether they
are cash instruments or derivative instruments:
Cash instruments are financial instruments whose value is determined
directly by the markets. They can be divided into securities, which are readily
transferable, and other cash instruments such as loans and deposits, where
both borrower and lender have to agree on a transfer.
Derivative instruments are financial instruments which derive their value
from the value and characteristics of one or more underlying entities such as
an asset, index, or interest rate. They can be divided into exchange-traded
derivatives and over-the-counter (OTC) derivatives.

What are Derivatives?

A derivative is a broad term covering a variety of financial instruments whose
values are derived from one or more underlying assets, market securities or
indices. In practice, it is a contract between two parties that specifies conditions
(especially the dates, resulting values and definitions of the underlying variables,
the parties' contractual obligations, and the notional amount) under which
payments are to be made between the parties. The most common underlying
assets include: commodities, stocks, bonds, interest rates and currencies.

Derivative contracts such as forwards, futures, options and swaps.

- A forward contract or simply a forward is a non-standardized contract
between two parties to buy or sell an asset at a specified future time at a
price agreed upon today.

- A futures contract (more colloquially, futures) is a
standardized contract between two parties to buy or sell a specified asset
of standardized quantity and quality for a price agreed upon today
(the futures price or strike price) with delivery and payment occurring at a
specified future date, the delivery date.

- An option is a contract which gives the owner the right, but not the
obligation, to buy or sell an underlying asset or instrument at a
specified strike price on or before a specified date. The seller incurs a



corresponding obligation to fulfill the transaction that is to sell or buy, if
the long holder elects to "exercise" the option prior to expiration. The buyer
pays a premium to the seller for this right. An option which conveys the
right to buy something at a specific price is called a call; an option which
conveys the right to sell something at a specific price is called a put. Both
are commonly traded, though in basic finance for clarity the call option is
more frequently discussed, as it moves in the same direction as the
underlying asset, rather than opposite, as does the put.

- A swap is a derivative in which counterparties exchange cash flows of one
party's financia instrument for those of the other party's financial
instrument. The benefits in question depend on the type of financial
instruments involved. For example, in the case of a swap involving
two bonds, the benefits in question can be the periodic interest (or coupon)
payments associated with the bonds

What are Bonds?
A bond is an instrument of indebtedness of the bond issuer to the holders. It is a
debt security, under which the issuer owes the holders a debt and, depending on
the terms of the bond, is obliged to pay them interest (the coupon) and/or to
repay the principal at a later date, termed the maturity.

Interest is usually
payable at fixed intervals (semiannual, annual, and sometimes monthly). Very
often the bond is negotiable, i.e. the ownership of the instrument can be
transferred in the secondary market.

Thus a bond is a form of loan or IOU: the holder of the bond is the lender
(creditor), the issuer of the bond is the borrower (debtor), and the coupon is the
interest. Bonds provide the borrower with external funds to finance long-
term investments, or, in the case of government bonds, to finance current
expenditure. Certificates of deposit (CDs) or short term commercial paper are
considered to be money market instruments and not bonds: the main difference is
in the length of the term of the instrument.
What are debentures?

A debenture is a document that either creates a debt or acknowledges it, and it is
a debt without collateral. In corporate finance, the term is used for a medium- to
long-term debt instrument used by large companies to borrow money. In some
countries the term is used interchangeably with bond, loan stock or note. A
debenture is thus like a certificate of loan or a loan bond evidencing the fact that
the company is liable to pay a specified amount with interest and although the
money raised by the debentures becomes a part of the company's capital
structure, it does not become share capital. Senior debentures get paid before



subordinate debentures, and there are varying rates of risk and payoff for these
categories.


What is Capital Market?

Capital markets provide for the buying and selling of long
termdebt or equity backed securities. The capital markets channel the wealth of
savers to those who can put it to long term productive use, such as companies or
governments making long term investments


Most 282 importand acconting and finance concepts

1. definition of accounting: the art of recording, classifying and summarizing in a
significant manner and in terms of money, transactions and events which are, in
part at least of a financial character and interpreting the results there of.

2. book keeping:
It is mainly concerned with recording of financial data relating to the business
operations in a significant and orderly manner.

3. Branches of accounting
a. financial a
ccounting
b. management accounting

4. Concepts of accounting:
A. separate entity concept B. going concern concept
C. money measurement concept D. cost concept
E. dual aspect concept F. accounting period concept
G. periodic matching of costs and revenue concept H. realization concept.

5 Conventions of accounting
A. conservatism
B. full disclosure
C. consistency
D materiality.

6. Systems of book keeping:
A. single entry system
B. double entry system




7. Systems of accounting
A. cash system accounting
B. mercantile system of accounting.
- 2 -
8. Principles of accounting
a. personal a/c : debit the receiver
Credit the giver
b. real a/c : debit what comes in
Credit what goes out
c. nominal a/c : debit all expenses and losses
credit all gains and incomes
9. Meaning of journal: journal means chronological record of transactions.

10 Meaning of ledger: ledger is a set of accounts. It contains all accountsof the
business enterprise whether real, nominal, personal.

11. Posting: it means transferring the debit and credit items from the journal to
their respective accounts in the ledger.

12. Trial balance: trial balance is a statement containing the various ledger
balances on a particular date.

13. Credit note: the customer when returns the goods get credit for the value of
the goods returned. A credit note is sent to him intimating that his a/c has been
credited with the value of the goods returned.

14. Debit note: when the goods are returned to the supplier, a debit note is sent
to him indicating that his a/c has been debited with the amount mentioned in the
debit note.

15. Contra entry: which accounting entry is recorded on both the debit and credit
side of the cash book is known as the contra entry.

16. Petty cash book: petty cash is maintained by business to record petty cash
expenses of the business, such as postage, cartage, stationery, etc.

17.promisory note: an instrument in writing containing an unconditional
undertaking signed by the maker, to pay certain sum of money only to or to the
order of a certain person or to the barer of the instrument.

18. Cheque: a bill of exchange drawn on a specified banker and payable on
demand.




19. Stale cheque: a stale cheque means not valid of cheque that means more than
six months the cheque is not valid.

20. Bank reconciliation statement: it is a statement reconciling the balance as
shown by the bank pass book and the balance as shown by the Cash Book. Obj: to
know the difference & pass necessary correcting, adjusting entries in the books.

21. Matching concept: matching means requires proper matching of expense with
the revenue.

22. Capital income: the term capital income means an income which does not
grow out of or pertain to the running of the business proper.

23. Revenue income: the income which arises out of and in the course of the
regular business transactions of a concern.

24. Capital expenditure: it means an expenditure which has been incurred for the
purpose of obtaining a long term advantage for the business.

25. Revenue expenditure: an expenditure that incurred in the course of regular
business transactions of a concern.

26. Differed revenue expenditure: an expenditure which is incurred during
an accounting period but is applicable further periods also. Eg: heavy
advertisement.

27. Bad debts: bad debts denote the amount lost from debtors to whom the goods
were sold on credit.

28. Depreciation: depreciation denotes gradually and permanent decrease in the
value of asset due to wear and tear, technology changes, laps of time and
accident.

29. Fictitious assets: These are assets not represented by tangible possession or
property. Examples of preliminary expenses, discount on issue of shares, debit
balance in the profit and loss account when shown on the assets side in the
balance sheet.

30. Intanglbe Assets: an intangible asset means the assets which is not having the
physical appearance. And its have the real value, it shown on the assets side of the
balance sheet.

31. Accrued Income: Accrued income means income which has been earned by the



business during the accounting year but which has not yet been due and,
therefore, has not been received.

32. Out standing Income: Outstanding Income means income which has become
due during the accounting year but which has not so far been received by the firm.

33. Suspense account: the suspense account is an account to which the difference
in the trial balance has been put temporarily.

34. Depletion: it implies removal of an available but not replaceable source, Such
as extracting coal from a coal mine.

35. Amortization: the process of writing of intangible assets is term as
amortization.

36. Dilapidations: the term dilapidations to damage done to a building or other
property during tenancy.

37. Capital employed: the term capital employed means sum of total long term
funds employed in the business. i.e.

(Share capital+ reserves & surplus +long term loans (non business assets +
fictitious assets)
38. Equity shares: those shares which are not having pref. rights are called equity
shares.

39. Pref.shares: Those shares which are carrying the pref.rights is called pref.
shares
Pref.rights in respect of fixed dividend.
Pref.right to repayment of capital in the even of company winding up.

40. Leverage: It is a force applied at a particular point to get the desired result.

41. Operating leverage:

: the operating leverage takes place when a changes in revenue greater changes in
EBIT.

42. Financial leverage: it is nothing but a process of using debt capital to increase
the rate of return on equity

43. Combine leverage: it is used to measure of the total risk of the firm =
operating risk + financial risk.




44. Joint venture: A joint venture is an association of two or more the persons who
combined for the execution of a specific transaction and divide the profit or loss
their of an agreed ratio.

45. Partnership: partnership is the relation b/w the persons who have agreed to
share the profits of business carried on by all or any of them acting for all.

46. Factoring: It is an arrangement under which a firm (called borrower) receives
advances against its receivables, from a financial institutions (called factor)

47. Capital reserve: The reserve which transferred from the capital gains is called
capital reserve.

48. General reserve: the reserve which is transferred from normal profits of the
firm is called general reserve

49. Free Cash: The cash not for any specific purpose free from any encumbrance
like surplus cash.

50. Minority Interest: minority interest refers to the equity of the minority
shareholders in a subsidiary company.

51. Capital receipts: capital receipts may be defined as non-recurring receipts
from the owner of the business or lender of the money crating a liability to either
of them.

52. Revenue receipts: Revenue receipts may defined as A recurring receipts
against sale of goods in the normal course of business and which generally the
result of the trading activities.
53. Meaning of Company: A company is an association of many persons who
contribute money or moneys worth to common stock and employs it for a common
purpose. The common stock so contributed is denoted in money and is the capital
of the company.

54. Types of a company:
1. Statutory companies
2. government company
3. foreign company
4. Registered companies:
a. Companies limited by shares
b. Companies limited by guarantee
c. Unlimited companies



D. private company
E. public company

55. Private company: A private co. is which by its AOA:
Restricts the right of the members to transfer of shares
Limits the no. of members 50.
Prohibits any Invitation to the public to subscribe for its shares or debentures.

56. Public company: A company, the articles of association of which does not
contain the requisite restrictions to make it a private limited company, is called a
public company..

57. Characteristics of a company:
Voluntary association
Separate legal entity
Free transfer of shares
Limited liability
Common seal
Perpetual existence.

58. Formation of company:
Promotion
Incorporation
Commencement of business

59. Equity share capital: The total sum of equity shares is called equity share
capital.

60. Authorized share capital: it is the maximum amount of the share capital which
a company can raise for the time being.

61. Issued capital: It is that part of the authorized capital which has been allotted
to the public for subscriptions.

62. Subscribed capital: it is the part of the issued capital which has been allotted
to the public
63. Called up capital: It has been portion of the subscribed capital which has been
called up by the company.

64. Paid up capital: It is the portion of the called up capital against which payment
has been received.

65. Debentures: Debenture is a certificate issued by a company under its seal



acknowledging a debt due by it to its holder.

66. Cash profit: cash profit is the profit it is occurred from the cash sales.

67. Deemed public Ltd. Company: A private company is a subsidiary company to
public company it satisfies the following terms/conditions Sec 3(1)3:

1. having minimum share capital 5 lakhs
2. accepting investments from the public
3. no restriction of the transferable of shares
4. No restriction of no. of members.
5. accepting deposits from the investors

68. Secret reserves: secret reserves are reserves the existence of which does not
appear on the face of balance sheet. In such a situation, net assets position of the
business is stronger than that disclosed by the balance sheet.

These reserves are crated by:
1. Excessive dep.of an asset, excessive over-valuation of a liability.
2. Complete elimination of an asset, or under valuation of an asset.

69. Provision: provision usually means any amount written off or retained by way
of providing depreciation, renewals or diminutions in the value of assets or
retained by way of providing for any known liability of which the amount can not
be determined with substantial accuracy.

70. Reserve: The provision in excess of the amount considered necessary for the
purpose it was originally made is also considered as reserve
Provision is charge against profits while reserves is an appropriation of profits
Creation of reserve increase proprietors fund while creation of provisions
decreases his funds in the business.

71. Reserve fund: the term reserve fund means such reserve against which clearly
investment etc.,

72. Undisclosed reserves: Sometimes a reserve is created but its identity is merged
with some other a/c or group of accounts so that the existence of the reserve is
not known such reserve is called an undisclosed reserve.

73. finance management: financial management deals with procurement of funds
and their effective utilization in business.

74. Objectives of financial management: financial management having two



objectives that Is:
1. Profit maximization: the finance manager has to make his decisions in a manner
so that the profits of the concern are maximized.
2. Wealth maximization: wealth maximization means the objective of a firm
should be to maximize its value or wealth, or value of a firm is represented by the
market price of its common stock.

75. Functions of financial manager:
Investment decision
Dividend decision
Finance decision
Cash management decisions
Performance evaluation
Market impact analysis

76. Time value of money: the time value of money means that worth of a rupee
received today is different from the worth of a rupee to be received in future.

77. Capital structure: it refers to the mix of sources from where the long-term
funds required in a business may be raised; in other words, it refers to the
proportion of debt, preference capital and equity capital.

78. Optimum capital structure: capital structure is optimum when the firm has a
combination of equity and debt so that the wealth of the firm is maximum.

79. Wacc: it denotes weighted average cost of capital. It is defined as the overall
cost of capital computed by reference to the proportion of each component of
capital as weights.

80. Financial break even point: it denotes the level at which a firms EBIT is just
sufficient to cover interest and preference dividend.

81. Capital budgeting: capital budgeting involves the process of decision making
with regard to investment in fixed assets. Or decision making with regard to
investment of money in long term projects.

82. Pay back period: payback period represents the time period required for
complete recovery of the initial investment in the project.

83. ARR: accounting or average rate of return means the average annual yield on
the project.

84. NPV: the net present value of an investment proposal is defined as the sum of



the present values of all future cash in flows less the sum of the present values of
all cash out flows associated with the proposal.

85. Profitability index: where different investment proposal each involving
different initial investments and cash inflows are to be compared.

86. IRR: internal rate of return is the rate at which the sum total of discounted
cash inflows equals the discounted cash out flow.

87. Treasury management: it means it is defined as the efficient management of
liquidity and financial risk in business.

88. Concentration banking: it means identify locations or places where customers
are placed and open a local bank a/c in each of these locations and open local
collection centre.

89. Marketable securities: surplus cash can be invested in short term instruments
in order to earn interest.

90. Ageing schedule: in a ageing schedule the receivables are classified according
to their age.

91. Maximum permissible bank finance (MPBF): it is the maximum amount that
banks can lend a borrower towards his working capital requirements.

92. Commercial paper: a cp is a short term promissory note issued by a company,
negotiable by endorsement and delivery, issued at a discount on face value as may
be determined by the issuing company.

93. Bridge finance: It refers to the loans taken by the company normally from
commercial banks for a short period pending disbursement of loans sanctioned by
the financial institutions.

94. Venture capital: It refers to the financing of high risk ventures promoted by
new qualified entrepreneurs who require funds to give shape to their ideas.

95. Debt securitization: It is a mode of financing, where in securities are issued on
the basis of a package of assets (called asset pool).

96. Lease financing: Leasing is a contract where one party (owner) purchases
assets and permits its views by another party (lessee) over a specified period

97. Trade Credit: It represents credit granted by suppliers of goods, in the normal



course of business.

98. Over draft: Under this facility a fixed limit is granted within which the
borrower allowed to overdraw from his account.

99. Cash credit: It is an arrangement under which a customer is allowed an
advance up to certain limit against credit granted by bank.

100. Clean overdraft: It refers to an advance by way of overdraft facility, but not
back by any tangible security.

101. Share capital: The sum total of the nominal value of the shares of a company
is called share capital.

102. Funds flow statement: It is the statement deals with the financial resources
for running business activities. It explains how the funds obtained and how they
used.

103. Sources of funds: There are two sources of funds internal sources and
external sources.

Internal source: Funds from operations is the only internal sources of funds and
some important points add to it they do not result in the outflow of funds
(a)Depreciation on fixed assets (b) Preliminary expenses or goodwill written off,
Loss on sale of fixed assets
Deduct the following items as they do not increase the funds:
Profit on sale of fixed assets, profit on revaluation of fixed assets

External sources: (a) Funds from long term loans (b) Sale of fixed assets (c) Funds
from increase in share capital

104. Application of funds: (a) Purchase of fixed assets (b) Payment of dividend
(c)Payment of tax liability (d) Payment of fixed liability

105. ICD (Inter corporate deposits): Companies can borrow funds for a short
period. For example 6 months or less from another company which have surplus
liquidity. Such deposits made by one company in another company are called ICD.

106. Certificate of deposits: The CD is a document of title similar to a fixed
deposit receipt issued by banks there is no prescribed interest rate on such CDs it
is based on the prevailing market conditions.

107. Public deposits: It is very important source of short term and medium term



finance. The company can accept PD from members of the public and
shareholders. It has the maturity period of 6 months to 3 years.

108. Euro issues: The euro issues means that the issues is listed on a European
stock Exchange. The subscription can come from any part of the world except
India.

109. GDR (Global depository receipts): A depository receipt is basically a
negotiable certificate, dominated in us dollars that represents a non-US company
publicly traded in local currency equity shares.

110. ADR (American depository receipts): Depository receipt issued by a company
in the USA is known as ADRs. Such receipts are to be issued in accordance with the
provisions stipulated by the securities Exchange commission (SEC) of USA like SEBI
in India.

111. Commercial banks: Commercial banks extend foreign currency loans for
international operations, just like rupee loans. The banks also provided overdraft.

112. Development banks: It offers long-term and medium term loans including
foreign currency loans

113. International agencies: International agencies like the IFC,IBRD,ADB,IMF etc.
provide indirect assistance for obtaining foreign currency.

114. Seed capital assistance: The seed capital assistance scheme is desired by the
IDBI for professionally or technically qualified entrepreneurs and persons
possessing relevant experience and skills and entrepreneur traits.

115. Unsecured l0ans: It constitutes a significant part of long-term finance
available to an enterprise.

116. Cash flow statement: It is a statement depicting change in cash position from
one period to another.

117.Sources of cash: Internal sources-(a)Depreciation (b)Amortization (c)Loss on
sale of fixed assets (d)Gains from sale of fixed assets (e) Creation of reserves
External sources-(a)Issue of new shares (b)Raising long term loans (c)Short-term
borrowings (d)Sale of fixed assets, investments

118. Application of cash: (a) Purchase of fixed assets (b) Payment of long-term
loans (c) Decrease in deferred payment liabilities (d) Payment of tax, dividend (e)
Decrease in unsecured loans and deposits




119. Budget: It is a detailed plan of operations for some specific future period. It
is an estimate prepared in advance of the period to which it applies.

120. Budgetary control: It is the system of management control andaccounting in
which all operations are forecasted and so for as possible planned ahead, and the
actual results compared with the forecasted and planned ones.

121. Cash budget: It is a summary statement of firms expected cash inflow and
outflow over a specified time period.

122. Master budget: A summary of budget schedules in capsule form made for the
purpose of presenting in one report the highlights of the budget forecast.

123. Fixed budget: It is a budget which is designed to remain unchanged
irrespective of the level of activity actually attained.

124. Zero- base- budgeting: It is a management tool which provides a systematic
method for evaluating all operations and programmers, current of new allows for
budget reductions and expansions in a rational manner and allows reallocation of
source from low to high priority programs.

125. Goodwill: The present value of firms anticipated excess earnings.

126. BRS: It is a statement reconciling the balance as shown by the bank pass book
and balance shown by the cash book.

127. Objective of BRS: The objective of preparing such a statement is to know the
causes of difference between the two balances and pass necessary correcting or
adjusting entries in the books of the firm.

128. Responsibilities of accounting: It is a system of control by delegating and
locating the responsibilities for costs.

129. Profit centre: A centre whose performance is measured in terms of both the
expense incurs and revenue it earns.

130. Cost centre: A location, person or item of equipment for which cost may be
ascertained and used for the purpose of cost control.

131. Cost: The amount of expenditure incurred on to a given thing.

132. Cost accounting: It is thus concerned with recording, classifying, and



summarizing costs for determination of costs of products or services planning,
controlling and reducing such costs and furnishing of information management for
decision making.

133. Elements of cost: (A) Material (B) Labour (C) Expenses (D) Overheads

134. Components of total costs: (A) Prime cost (B) Factory cost (C)Total cost of
production (D) Total c0st

135. Prime cost: It consists of direct material direct labour and direct expenses. It
is also known as basic or first or flat cost.

136. Factory cost: It comprises prime cost, in addition factory overheads which
include cost of indirect material indirect labour and indirect expenses incurred in
factory. This cost is also known as works cost or production cost or manufacturing
cost.

137. Cost of production: In office and administration overheads are added to
factory cost, office cost is arrived at.

138. Total cost: Selling and distribution overheads are added to total cost of
production to get the total cost or cost of sales.

139. Cost unit: A unit of quantity of a product, service or time in relation to which
costs may be ascertained or expressed.

140.Methods of costing: (A)Job costing (B)Contract costing (C)Process costing
(D)Operation costing (E)Operating costing (F)Unit costing (G)Batch costing.

141. Techniques of costing: (a) marginal costing (b) direct costing (c)absorption
costing (d) uniform costing.

142. Standard costing: standard costing is a system under which the cost of the
product is determined in advance on certain predetermined standards.

143. Marginal costing: it is a technique of costing in which allocation of
expenditure to production is restricted to those expenses which arise as a result of
production, i.e., materials, labour, direct expenses and variable overheads.

144. Derivative: derivative is product whose value is derived from the value of one
or more basic variables of underlying asset.

145. Forwards: a forward contract is customized contracts between two entities



were settlement takes place on a specific date in the future at todays pre agreed
price.

146. Futures: a future contract is an agreement between two parties to buy or sell
an asset at a certain time in the future at a certain price. Future contracts are
standardized exchange traded contracts.

147. Options: an option gives the holder of the option the right to do some thing.
The option holder option may exercise or not.

148. Call option: a call option gives the holder the right but not the obligation to
buy an asset by a certain date for a certain price.

149. Put option: a put option gives the holder the right but not obligation to sell
an asset by a certain date for a certain price.

150. Option price: option price is the price which the option buyer pays to the
option seller. It is also referred to as the option premium.

151. Expiration date: the date which is specified in the option contract is called
expiration date.

152. European option: it is the option at exercised only on expiration date it self.

153. Basis: basis means future price minus spot price.

154. Cost of carry: the relation between future prices and spot prices can be
summarized in terms of what is known as cost of carry.

155. Initial margin: the amount that must be deposited in the margin a/c at the
time of first entered into future contract is known as initial margin.

156 Maintenance margin: this is some what lower than initial margin.

157. Mark to market: in future market, at the end of the each trading day, the
margin a/c is adjusted to reflect the investors gains or loss depending upon the
futures selling price. This is called mark to market.

158. Baskets: basket options are options on portfolio of underlying asset.

159. Swaps: swaps are private agreements between two parties to exchange cash
flows in the future according to a pre agreed formula.




160. Impact cost: impact cost is cost it is measure of liquidity of the market. It
reflects the costs faced when actually trading in index.

161. Hedging: hedging means minimize the risk.

162. Capital market: capital market is the market it deals with the long term
investment funds. It consists of two markets 1.primary market 2.secondary
market.

163. Primary market: those companies which are issuing new shares in this market.
It is also called new issue market.

164. Secondary market: secondary market is the market where shares buying and
selling. In India secondary market is called stock exchange.

165. Arbitrage: it means purchase and sale of securities in different markets in
order to profit from price discrepancies. In other words arbitrage is a way of
reducing risk of loss caused by price fluctuations of securities held in a portfolio.

166. Meaning of ratio: Ratios are relationships expressed in mathematical terms
between figures which are connected with each other in same manner.

167. Activity ratio: it is a measure of the level of activity attained over a period.

168. Mutual fund: a mutual fund is a pool of money, collected from investors, and
is invested according to certain investment objectives.

169. Characteristics of mutual fund:
Ownership of the MF is in the hands of the of the investors
MF managed by investment professionals
The value of portfolio is updated every day

170. Advantage of MF to investors:
Portfolio diversification
Professional management
Reduction in risk
Reduction of transaction casts
Liquidity
Convenience and flexibility

171.net asset value : the value of one unit of investment is called as the Net Asset
Value




172.open-ended fund : open ended funds means investors can buy and sell units of
fund, at NAV related prices at any time, directly from the fund this is called open
ended fund.
For ex; unit 64

173.close ended funds : close ended funds means it is open for sale to investors for
a specific period, after which further sales are closed. Any further transaction for
buying the units or repurchasing them, happen, in the secondary markets.

174. dividend option : investors who choose a dividend on their investments, will
receive dividends from the MF, as when such dividends are declared.

175.growth option : investors who do not require periodic income distributions can
be choose the growth option.

176.equity funds : equity funds are those that invest pre-dominantly in equity
shares of company.

177.types of equity funds :
Simple equity funds
Primary market funds
Sectoral funds
Index funds

178. sectoral funds : sectoral funds choose to invest in one or more chosen sectors
of the equity markets.

179.index funds :the fund manager takes a view on companies that are expected
to perform well, and invests in these companies
.
180.debt funds : the debt funds are those that are pre-dominantly invest in debt
securities.

181. liquid funds : the debt funds invest only in instruments with maturities less
than one year.

182. gilt funds : gilt funds invests only in securities that are issued by the GOVT.
and therefore does not carry any credit risk.

183.balanced funds :funds that invest both in debt and equity markets are called
balanced funds.

184. sponsor : sponsor is the promoter of the MF and appoints trustees, custodians



and the AMC with prior approval of SEBI .

185. trustee : trustee is responsible to the investors in the MF and appoint the AMC
for managing the investment portfolio.

186. AMC : the AMC describes Asset Management Company, it is the business face
of the MF, as it manages all the affairs of the MF.

187. R & T Agents : the R&T agents are responsible for the investor servicing
functions, as they maintain the records of investors in MF.

188. custodians : custodians are responsible for the securities held in the mutual
funds portfolio.

189. scheme take over : if an existing MF scheme is taken over by the another
AMC, it is called as scheme take over.

190.meaning of load: load is the factor that is applied to the NAV of a scheme to
arrive at the price.

192. market capitalization : market capitalization means number of shares issued
multiplied with market price per share.

193.price earning ratio : the ratio between the share price and the post tax
earnings of company is called as price earning ratio.

194. dividend yield : the dividend paid out by the company, is usually a percentage
of the face value of a share.

195. market risk : it refers to the risk which the investor is exposed to as a result
of adverse movements in the interest rates. It also referred to as the interest rate
risk.

196. Re-investment risk : it the risk which an investor has to face as a result of a
fall in the interest rates at the time of reinvesting the interest income flows from
the fixed income security.

197. call risk : call risk is associated with bonds have an embedded call option in
them. This option hives the issuer the right to call back the bonds prior to
maturity.

198. credit risk : credit risk refers to the probability that a borrower could default
on a commitment to repay debt or band loans




199.inflation risk : inflation risk reflects the changes in the purchasing power of
the cash flows resulting from the fixed income security.

200.liquid risk : it is also called market risk, it refers to the ease with which bonds
could be traded in the market.

201.drawings : drawings denotes the money withdrawn by the proprietor from the
business for his personal use.

202.outstanding Income : Outstanding Income means income which has become
due during the accounting year but which has not so far been received by the firm.

203.Outstanding Expenses : Outstanding Expenses refer to those expenses which
have become due during the accounting period for which the Final Accounts have
been prepared but have not yet been paid.

204.closing stock : The term closing stock means goods lying unsold with the
businessman at the end of the accounting year.

205. Methods of depreciation:
1. Unirorm charge methods :
a. Fixed installment method
b .Depletion method
c. Machine hour rate method.
2. Declining charge methods :
a. Diminishing balance method
b.Sum of years digits method
c. Double declining method
3. Other methods :
a. Group depreciation method
b. Inventory system of depreciation
c. Annuity method
d. Depreciation fund method
e. Insurance policy method.
206.Accrued Income : Accrued Income means income which has been earned by
the business during the accounting year but which has not yet become due and,
therefore, has not been received.

207.Gross profit ratio : it indicates the efficiency of the production/trading
operations.

Formula : Gross profit X100



Net sales

208.Net profit ratio : it indicates net margin on sales

Formula : Net profit X 100
Net sales

209. return on share holders funds : it indicates measures earning power of equity
capital.
Formula : profits available for Equity shareholders X 100
Average Equity Shareholders Funds

210. Earning per Equity share (EPS) : it shows the amount of earnings attributable
to each equity share.

Formula : profits available for Equity shareholders
Number of Equity shares

211.dividend yield ratio : it shows the rate of return to shareholders in the form of
dividends based in the market price of the share

Formula : Dividend per share X 100
Market price per share

212. price earning ratio : it a measure for determining the value of a share. May
also be used to measure the rate of return expected by investors.

Formula : Market price of share (MPS) X 100
Earning per share (EPS)

213.Current ratio : it measures short-term debt paying ability.

Formula : Current Assets
Current Liabilities

214. Debt-Equity Ratio : it indicates the percentage of funds being financed
through borrowings; a measure of the extent of trading on equity.

Formula : Total Long-term Debt
Shareholders funds
215.Fixed Assets ratio : This ratio explains whether the firm has raised adepuate
long-term funds to meet its fixed assets requirements.




Formula Fixed Assets
Long-term Funds

216 . Quick Ratio : The ratio termed as liquidity ratio. The ratio is ascertained y
comparing the liquid assets to current liabilities.

Formula : Liquid Assets
Current Liabilities

217. Stock turnover Ratio : the ratio indicates whether investment in inventory in
efficiently used or not. It, therefore explains whether investment in inventory
within proper limits or not.

Formula : cost of goods sold
Average stock

218. Debtors Turnover Ratio : the ratio the better it is, since it would indicate that
debts are being collected more promptly. The ration helps in cash budgeting since
the flow of cash from customers can be worked out on the basis of sales.

Formula : Credit sales
Average Accounts Receivable

219.Creditors Turnover Ratio : it indicates the speed with which the payments for
credit purchases are made to the creditors.

Formula : Credit Purchases
Average Accounts Payable

220. Working capital turnover ratio : it is also known as Working Capital Leverage
Ratio. This ratio indicates whether or not working capital has been effectively
utilized in making sales.

Formula : Net Sales
Working Capital

221.Fixed Assets Turnover ratio : This ratio indicates the extent to which the
investments in fixed assets contributes towards sales.

Formula : Net Sales
Fixed Assets

222 .Pay-out Ratio : This ratio indicates what proportion of earning per share has



been used for paying dividend.

Formula : Dividend per Equity Share X 100
Earning per Equity share

223.Overall Profitability Ratio : It is also called as Return on Investment (ROI)
or Return on Capital Employed (ROCE) . It indicates the percentage of return on
the total capital employed in the business.

Formula : Operating profit X 100
Capital employed

The term capital employed has been given different meanings
a. sum total of all assets whether fixed or current
b. sum total of fixed assets,
c. sum total of long-term funds employed in the business, i.e.,
share capital +reserves &surplus +long term loans (non business assets + fictitious
assets).
Operating profit means profit before interest and tax

224 . Fixed Interest Cover ratio : the ratio is very important from the lenders
point of view. It indicates whether the business would earn sufficient profits to
pay periodically the interest charges.

Formula : Income before interest and Tax
Interest Charges

225 . Fixed Dividend Cover ratio : This ratio is important for preference
shareholders entitled to get dividend at a fixed rate in priority to other
shareholders.

Formula : Net Profit after Interest and Tax
Preference Dividend

226. Debt Service Coverage ratio : This ratio is explained ability of a company to
make payment of principal amounts also on time.

Formula : Net profit before interest and tax
Interest + Principal payment installment
1- Tax rate

227. Proprietary ratio : It is a variant of debt-equity ratio . It establishes
relationship between the proprietors funds and the total tangible assets.




Formula : Shareholders funds
Total tangible assets

228. Difference between joint venture and partner ship :

In joint venture the business is carried on without using a firm name,
In the partnership, the business is carried on under a firm name.

In the joint venture, the business transactions are recorded under cash system
In the partnership, the business transactions are recorded under mercantile
system.

In the joint venture, profit and loss is ascertained on completion of the venture
In the partner ship , profit and loss is ascertained at the end of each year.

In the joint venture, it is confined to a particular operation and it is temporary.
In the partnership, it is confined to a particular operation and it is permanent

229. Meaning of Working capital

The funds available for conducting day to day operations of an enterprise. Also
represented by the excess of current assets over current liabilities .

230.concepts of accounting :

1. Business entity concepts :- According to this concept, the business is treated as
a separate entity distinct from its owners and others.

2. Going concern concept :- According to this concept, it is assumed that a
business has a reasonable expectation of continuing business at a profit for an
indefinite period of time.

3. Money measurement concept :- This concept says that theaccounting records
only those transactions which can be expressed in terms of money only.

4. Cost concept :-According to this concept, an asset is recorded in the books at
the price paid to acquire it and that this cost is the basis for all
subsequent accounting for the asset.

5. Dual aspect concept :- In every transaction, there will be two aspects the
receiving aspect and the giving aspect; both are recorded by debiting
one accounts and crediting another account. This is called double entry.




6. Accounting period concept :- It means the final accounts must be prepared on a
periodic basis. Normally accounting period adopted is one year, more than this
period reduces the utility of accounting data.
7. Realization concept :- According to this concepts, revenue is considered as
being earned on the data which it is realized, i.e., the date when the property in
goods passes the buyer and he become legally liable to pay.

8. Materiality concepts :- It is a one of the accounting principle, as per only
important information will be taken, and un important information will be ignored
in the preparation of the financial statement.

9. Matching concepts :- The cost or expenses of a business of a particular period
are compared with the revenue of the period in order to ascertain the net profit
and loss.

10. Accrual concept :- The profit arises only when there is an increase in owners
capital, which is a result of excess of revenue over expenses and loss.

231. Financial analysis :The process of interpreting the past, present, and future
financial condition of a company.

232. Income statement : An accounting statement which shows the level of
revenues, expenses and profit occurring for a given accounting period.

233. Annual report : The report issued annually by a company, to its share holders.
it containing financial statement like, trading and profit & lose account and
balance sheet.

234. Bankrupt: A statement in which a firm is unable to meets its obligations and
hence, it is assets are surrendered to court for administration

235 . Lease: Lease is a contract between to parties under the contract, the owner
of the asset gives the right to use the asset to the user over an agreed period of
the time for a consideration

236. Opportunity cost : The cost associated with not doing something.

237. Budgeting : The term budgeting is used for preparing budgets and other
producer for planning,co-ordination,and control of business enterprise
.
238.Capital : The term capital refers to the total investment of company in
money, tangible and intangible assets. It is the total wealth of a company.




239.Capitalization : It is the sum of the par value of stocks and bonds out
standings.

240. Over capitalization : When a business is unable to earn fair rate on its
outstanding securities.

241. Under capitalization : When a business is able to earn fair rate or over rate on
it is outstanding securities.

242. Capital gearing : The term capital gearing refers to the relationship between
equity and long term debt.

243.Cost of capital : It means the minimum rate of return expected by its
investment.

244.Cash dividend : The payment of dividend in cash

245.Define the term accrual : Recognition of revenues and costs as they are
earned or incurred . it includes recognition of transaction relating to assets and
liabilities as they occur irrespective of the actual receipts or payments.

245. accrued expenses : An expense which has been incurred in
anaccounting period but for which no enforceable claim has become due in what
period against the enterprises.

246.Accrued revenue : Revenue which has been earned is an earned is
an accounting period but in respect of which no enforceable claim has become due
to in that period by the enterprise.

247.Accrued liability : A developing but not yet enforceable claim by an another
person which accumulates with the passage of time or the receipt of service or
otherwise. it may rise from the purchase of services which at the date
of accounting have been only partly performed and are not yet billable.

248.Convention of Full disclosure : According to this convention,
allaccounting statements should be honestly prepared and to that end full
disclosure of all significant information will be made.

249.Convention of consistency : According to this convention it is essential
that accounting practices and methods remain unchanged from one year to
another.




250.Define the term preliminary expenses : Expenditure relating to the formation
of an enterprise. There include legal accounting and share issue expenses incurred
for formation of the enterprise.

251.Meaning of Charge : charge means it is a obligation to secure an indebt ness. It
may be fixed charge and floating charge.

252.Appropriation : It is application of profit towards Reserves and Dividends.

253.Absorption costing : A method where by the cost is determine so as to include
the appropriate share of both variable and fixed costs.

254.Marginal Cost : Marginal cost is the additional cost to produce an additional
unit of a product. It is also called variable cost.

255. What are the ex-ordinary items in the P&L a/c : The transaction which are
not related to the business is termed as ex-ordinary transactions or ex-ordinary
items. Egg:- profit or losses on the sale of fixed assets, interest received from
other company investments, profit or loss on foreign exchange, unexpected
dividend received.

256 . Share premium : The excess of issue of price of shares over their face value.
It will be showed with the allotment entry in the journal, it will be adjusted in the
balance sheet on the liabilities side under the head of reserves & surplus.

257. Accumulated Depreciation: The total to date of the periodic depreciation
charges on depreciable assets.

258. Investment: Expenditure on assets held to earn interest, income, profit or
other benefits.

259.Capital : Generally refers to the amount invested in an enterprise by its
owner. Ex; paid up share capital in corporate enterprise.

260. Capital Work In Progress : Expenditure on capital assets which are in the
process of construction as completion.

261. Convertible Debenture : A debenture which gives the holder a right to
conversion wholly or partly in shares in accordance with term of issues.

262.Redeemable Preference Share : The preference share that is repayable either
after a fixed (or) determinable period (or) at any time dividend by the
management.




263. Cumulative preference shares : A class of preference shares entitled to
payment of cumulates dividends. Preference shares are always deemed to be
cumulative unless they are expressly made non-cumulative preference shares.

264.Debenture redemption reserve : A reserve created for the redemption of
debentures at a future date.

265. Cumulative dividend : A dividend payable as cumulative preference shares
which it unpaid cumulates as a claim against the earnings of a corporate before
any distribution is made to the other shareholders.

266. Dividend Equalization reserve : A reserve created to maintain the rate of
dividend in future years.

267. Opening Stock: The term opening stock means goods lying unsold with the
businessman in the beginning of the accounting year. This is shown on the debit
side of the trading account.

268.Closing Stock : The term Closing Stock includes goods lying unsold with the
businessman at the end of the accounting year. The amount of closing stock is
shown on the credit side of the trading account and as an asset in the balance
sheet.

269.Valuation of closing stock : The closing stock is valued on the basis of Cost or
Market price whichever is less principle.

272. Contingency : A condition (or) situation the ultimate out come of which gain
or loss will be known as determined only as the occurrence or non occurrence of
one or more uncertain future events.

273.Contingent Asset : An asset the existence ownership or value of which may be
known or determined only on the occurrence or non occurrence of one more
uncertain future events.

274. Contingent liability : An obligation to an existing condition or situation which
may arise in future depending on the occurrence of one or more uncertain future
events.

275. Deficiency : the excess of liabilities over assets of an enterprise at a given
date is called deficiency.

276.Deficit : The debit balance in the profit and loss a/c is called deficit.




277.Surplus : Credit balance in the profit & loss statement after providing for
proposed appropriation & dividend , reserves.

278.Appropriation Assets : An account sometimes included as a separate section of
the profit and loss statement showing application of profits towards dividends,
reserves.

279. Capital redemption reserve : A reserve created on redemption of the average
cost:- the cost of an item at a point of time as determined by applying an average
of the cost of all items of the same nature over a period. When weights are also
applied in the computation it is termed as weight average cost.

280.Floating Change : Assume change on some or all assets of an enterprise which
are not attached to specific assets and are given as security against debt.

281. Difference between Funds flow and Cash flow statement :

A Cash flow statement is concerned only with the change in cash position while a
funds flow analysis is concerned with change in working capital position between
two balance sheet dates.

A cash flow statement is merely a record of cash receipts and disbursements.
While studying the short-term solvency of a business one is interested not only in
cash balance but also in the assets which are easily convertible into cash.

282. Difference Between the Funds flow and Income statement :

A funds flow statement deals with the financial resource required for running the
business activities. It explains how were the funds obtained and how were they
used,
Whereas an income statement discloses the results of the business activities, i.e.,
how much has been earned and how it has been spent.

A funds flow statement matches the funds raised and funds applied during a
particular period. The source and application of funds may be of capital as well as
of revenue nature.
An income statement matches the incomes of a period with the expenditure of
that period, which are both of a revenue nature.

General HR Questions

Why Should We Hire You?




Answer the question in point form, e.g. start by saying: there are three reasons
( Like Hard working, Flexible, Understanding the Business need and use 3
keywords to highlight the 3 reasons, followed by short explanation or supporting
examples.
Another Answer
I realize that there are likely other candidates who also have the ability to do this
job. Yet I bring an additional quality that makes me the best person for the jobmy
passion for excellence. I am passionately committed to producing truly world class
results.
Why you want to work with our Company?

Its my dream to work with Cognizant as from past 3 months im waiting for the
interview in the mean time i gone through the profile that company was
established in 1994 and has diversified process and listed as forutne 500 company
with net profits crossed the expectation and people feel proud to work for such
growth oriented company where i can contribute my work passionately and im sure
i will be very lucky if im the part of that company.

Where do you see yourself from (five) years from now?
I see myself as a successful person in future, and I will be taking on new
challenges. I would also like to add that nobody has seen the future and one can
only make better future by living at present and working hard to make better
future.

What is your greatest strength?
- Flexibility to handle change.
- Adaptable, can work anywhere, anytime/long hours.
- Good leadership and team building ability.
- Optimistic, positive thinking.
- Co-operative
Tell us some of your weaknesses ?
The best way to answer this question will be to turn one of your strengths as a
weakness and say that others accuse you of having this weakness but you think it is
important to work in this manner. For e.g.: My colleagues accuse me of paying to
much attention to syntaxes but I believe it is important when you are writing the
code to avoid spending too much time on finding and fixing the bugs later on.



Another way to answer this question is to offer a totally un-related weakness for
e.g. I have been staying alone for so many years now but I still cant cook
independently.
What is your future plans?
I would like to get in to corporate field and deliver my maximum concentration
toward the job profile which would help me for my career growth as well as
professionally adding experience to me.

What kind of a salary are you looking for?

As Iam an Fresher salary is not a constraint I accept according to the companies
norms and policies my goal is to work and gain knowledge from your industry
thats very important to me.

Do you have any questions for us?
Ask about the growth prospects for you within the company etc.
For how long do you expect to stay with our organization?
You can say I will stay here as far as I see an opportunity for growth, as I am
looking for stability in work place
-You can ask whether the company allows for lateral and vertical role changes
-You can also ask whether the company encourages learning and development of
employees
-Ask whether the company has plans for expansion
-You can also discuss your role in detail
Tell us something about yourself, discuss 5 characteristics
List down points that will help you professionally:
-Independent
-Responsible
-Hard working
-Multi tasker
-Prompt
-Add your characteristics



Tell us something about your hobbies
Answer it with honesty, as they can go deeper into this discussion. You can
include:
-Browsing the internet
-Blogging,
-Listening to music,
-Chatting with friends
-Reading newspapers,
-Reading books,
-Shopping,
-Watching movies

ABOUT COGNIZANT

Cognizant (NASDAQ: CTSH) is a leading provider of information technology,
consulting, and business process outsourcing services, dedicated to helping the
worlds leading companies build stronger businesses.

Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for
customer satisfaction, technology innovation, deep industry and business process
expertise, and a global, collaborative workforce that embodies the future of work.

With over 50 delivery centers worldwide and approximately 150,400 employees as
of September 30, 2012, Cognizant is a member of the NASDAQ-100, the S&P 500,
the Forbes Global 2000, and the Fortune 500 and is ranked among the top
performing and fastest growing companies in the world.

History

Founded in 1994 as a captive arm of Dun & Bradstreet

Traded on NASDAQ since 1998
Stock symbol: NASDAQ: CTSH
Member since 2004: NASDAQ-100 Index
Member since 2006: S&P 500 Index
Member since 2011: Fortune 500

Market Position & Mission

Cognizant is a leading provider of information technology, consulting, IT
infrastructure and business process outsourcing services. Cognizants single-
minded mission is to dedicate our business process and technology innovation
know-how, deep industry expertise and worldwide resources to working together
with customers to make their businesses stronger.




Financials

2012 Revenues: At least $7.34 billion (guidance)
2011 Revenues: $6.12 billion (up 33% YoY)
2011 Diluted EPS (GAAP): $2.85
2011 Net income (GAAP): $883.6 million
2011 Operating margin (GAAP): 18.6%
Q3 2012 Revenues: $1.892 billion (up 18% YoY)

Corporate Headquarters: New Jersy

Executive Officers

Lakshmi Narayanan, Vice Chairman
Francisco DSouza, Chief Executive Officer
Gordon J. Coburn, President



Customers

821 Active customers
27 of the top 30 global pharmaceutical companies
15 of the top 20 U.S. healthcare plans

Employees

Approximately 150,400 employees as of September 30, 2012

Recent Awards & Recognition

Newsweeks 2012 Green Rankings (October 2012)
InformationWeeks Top Innovators (September 2012)
Fortunes All Star List of Fastest Growing Companies
(September 2012)
Forbes Fast Tech 25 list (May 2012)
Fortune 500 (May 2012)
Fortunes Worlds Most Admired Companies (February 2012)

Key Highlights

Unique blend of onsite/offshore resources of approximately 150,400 passionate
Professionals
Strong relationships with 821 active customers worldwide
Enhanced domain focus through subverticalization



More than 90% of annual revenue from existing customers
Proactive solutions offerings to improve operational efficiency, complying with
industry regulations, and improving customer service levels

Cognizant Goal

Making our customers businesses stronger by empowering them to be more
responsive to their customers and to the competitive environment.

Key Areas of service

banking, capital markets, insurance, life sciences, healthcare, manufacturing,
logistics, retail, utilities, hospitality, communications, information services,
media, and entertainment

All the Best