There are two main categories of finance interview questions you will face: Being prepared for these types of questions is critical and the best strategy is to pick examples of specific situations from your resume that you can use as examples of: This guide focuses exclusively on technical finance interview questions.
The following are few best practices to keep in mind as you prepare for the finance interview. Be prepared Questions and answers on finance technical questions.
This isn't always true. When you arrive for a finance interview, you better make sure you have an understanding of basic finance and accounting concepts. Once an interviewer identifies a "gap" in your knowlegde, it's very difficult to change the tone of the interview.
Even in the best of job markets you're going to have competition for good jobs, so make sure you arrive at the interview knowledgeable and prepared for the position you're seeking.
Try to keep your responses and explanations under 2 minutes.
Answer the question completely but concisely--don't go overboard. More lengthy answers often lose the interviewer and sometimes lead to the interviewer coming back with more complex questions on the same subject. If you absolutely don't know the answer to a question, say so. It's okay not to know the answer to a few questions.
If the interviewer thinks you're trying to pull one over on him, you're going to loose face--and the job offer. When job candidates try to BS their way through a finance interview, it rarely turns out good.
If you're interviewing for a finance position, you're also going to be expected to be familiar with accounting. Accounting is the language of business, so don't think you can get by in your finance job or perform well in your interview without an understanding of basic accounting concepts and principles.
Expect to answer several accounting questions in your interview.
Some of the questions will be easy and straight forward, while others will be a bit more challenging. Below are some of the most common accounting questions you can expect to see during the interview process for a finance position.
Answer Unlike general expenses that provide benefit over a short period time i. Due to the duration of their estimated benefit--usually several years--capital expenditures are capitalized on the balance sheet, where shorter term expenditures are expensed on the income statement.
This is the difference between an asset and an expense. Explain to me what a cash flow statement is and how it works. You'll want to start with net income and then proceed line by line through the major adjustments depreciation, deferred taxes, and working capital changes required to arrive at cash flow from operations.
In your explanation you'll also want to mention the following: Adding the cash flows from operating, investing and financing activities your able to come up with the total change in cash.
By taking the cash balance at the beginning of the period and adjusting it for the total change in cash you arrive at the cash balance at the end of the period. Is it possible for a company to have positive cash flow but be in serious financial trouble?Finance Questions and Answers.
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We know it is difficult but if you know how to answer a question, you will definitely be able to ace the interview. Some of the most important accounts and finance interview questions asked during accounting interviews have been asked below.
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