Top Accounting and Finance Interview Questions asked to freshers First things first this is the most basic yet the easiest one to be taken for granted, know this well. sure you are explaining your answer in brief (one line about each is ideal) . Commonly asked accounting interview questions with their answers. Collection of questions for beginners and experienced accountants. PDF version also. Sample Accounting Interview Questions. General Accounting. 1. Tell me about yourself? 2. Why did you leave your last job? 3. What is your greatest weakness?.
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ACCOUNTING BASICS AND INTERVIEW QUESTIONS aracer.mobi - Download as Word Doc .doc /.docx), PDF File .pdf), Text File .txt) or read online. Frequently asked technical finance interview questions, accounting interview Someone who can't answer basic questions like 'walk me through a DCF' has. Interviewers are likely to cover all the basics of accounting and challenging questions as well. Here are some of the top accounting interview.
Two examples involve unsustainable improvements in working capital a company is selling off inventory and delaying payables , and another example involves lack of revenues going forward in the pipeline. Two examples include deterioration of working capital i.
Over the life of the asset: Since our cash flow statement starts with net income, an increase in accounts receivable is an adjustment to net income to reflect the fact that the company never actually received those funds. Goodwill is an asset that captures excess of the download price over fair market value of an acquired business.
Target has 1 asset: Differences in depreciation expense between book reporting GAAP and IRS reporting can lead to differences in income between the two, which ultimately leads to differences in tax expense reported in the financial statements and taxes payable to the IRS. I hope you enjoyed this article and found these finance interview questions hepful. I am pursuing my MBA in finance and currently in second year and the placements are on the doorstep.
I request you to keep publishing these kind of articles along with I think, if you will write on how to answer the questions related to the resume, which really drives the interview. I have a question of how to calculate net debt when there are derivatives used. Here is the information published by the company on it's balance sheet: Short term borrowing 1, Long term borrowing 6, Cash and marketable securities But then in a different part of the report it says: If the company believes these derivative positions can readily be exchanged for cash, that's fine, but typically I haven't seen the fair value of derivatives included within the net debt calculation.
I would stick with our definition of cash and equivalents, which typically includes Cash, ST investments and LT investments. Hope this helps - thanks.
Thanks Haseeb, that's very helpful. For what it's worth the company says the derivatives are interest rate swaps so I guess the fair value will change as interest rates change. To be conservative, I guess it makes sense to ignore the derivative positions as you have suggested. Hedges don't always work; we can assume what you are suggesting but for internal firm purposes it's important to keep track of the outstanding positions.
In the context of valuation, I agree with your points. Good hearing from you Muhammad! Hope all is well! I don't know the whats types of questions asked in the finance interview. Please tell me sir.
We have a really good set of courses that discuss technical and behavorial finance questions, and they cover all the topics candidates should expect to know to ace their interviews - good luck! My self Shaikh Qutuboddin, am an MBA grad in Finance also am working as finance and accounts executive in a Multinational Corporationsin Audit, Reconciliation, Revenue and Disbursement Statement preparation so am looking for a job in Financial Planning and Analyst, please advice me what should i prepare for that any subject some brief.
Awaiting your positive response. Definitely be familiar with the accounting questions and possibly valuation although valuation is less important than knowing accounting very well. Thank you for your kind reply on my request Could you again advice me on the preparation for financial planning and analysis like Budgeting, Forecasting, and Financial statement analysis kind of material in pdf would be more helpful if u provide Thanks again Regards shaikh.
I don't have anything in PDF but if you go through the questions and answers on https: Can you explain this question in more detail: Is it possible for a company to show positive cash flows but be in grave trouble? The point of this question is to demonstrate that there are other potential issues that a company can mask. If it's just shedding old inventory, or booking many more payables, or it has a horrible sales retention rate and there's significant change of loss in sales going forward, these are all signs of a company in grave trouble, despite currently managing its cash flow.
Thank you so much for the article Sir! Really appreciate a lot. This made my confidence boosted as I was searching for Finance Questions to be asked by the interviewer.
Really thanks once again Sir. I apologize but this website cannot ask specific questions about interviews at certain companies. What I would suggest, generally, is that you review tax accounting concepts and do some research on the type of work this company focuses on.
Hope this helps! What is the specific current asset? Is it inventory?
The answer will be very different from downloading equipment. Let's run through a download of inventory:.
Inventory then sits on the balance sheet until it is recognized as a Cost of Goods Sold per the matching principle. Dear sir: I have interview in Finance and banking and I need your help that how to prepare myself for it. Method of questions. Typically basic finance questions talk about your background, why you want to work in finance, and why you want to work in a specific investment bank. If you can answer all of those questions properly, that's a good start to acing the qualitative portion of the finance interview.
Let me know if you have any specific questions - more than happy to help - thanks! Sir i can't answer properly in viva question about finance.
Although finance was major in my BBA programmer.
Dear sir if the company not disclosing a expense rs. Have you looked into our Technical Finance Prep online course? That course does a great job of covering all topics expected during interviews, in detail. I think you are describing an accrued expense, so when you recognize the expense, the journal entry would be the following:. Are you referring to accrued expenses?
Accrued expenses typically arise when a company has to declare expenses before actually paying them out in cash. Think of this example - a company's employees get paid every 2nd and 4th Thursday, but the company has to disclose the expenses not paid in cash in a given period to close the books for the period.
Let me know if you need any additional clarification - thanks! If you are following accrual accounting you need to ensure that expense is recognized as an accounts payable - and then you are just paying down the accounts payable.
When you say expense, is it an expense related to a supply download. If so, the COGS would have already been recognized if you sold those goods. This pertains to you paying back a supplier a year later, in which you would have booked a payable at the time you initially downloadd the supplies last year. Hope this helps. From our discussions with investment banks and prospective candidates, we've made a concerted effort to cover the most common questions asked.
It is an asset that counts for how much the acquirer "overpaid" for the target. I hope this helps - thanks! Hello Sir I have a doubt in goodwill calculation, like goodwill it is reputation of company, then also we will treat it asset and keep in balance sheet with measuring in amount so how you calculate in amount.
Please reach out to support wallstreetprep. Stay tuned for more content online, but I encourage you to also visit http: I don't know how to contact IBD for mock interviews. Rohit - I would reach out to peers who are currently working in IBD and conduct mock interviews with them - that's the best approach! Deewakar - there are a lot of good resources to focus on MBA interview prep - please check them out - we are focused on IBD training specifically so we can't promise we'll write content in line with MBA interview prep.
Technical Finance Interview Prep. View all Recent Articles. These clients are the normal people and not any organizational customers. Not much knowledge but basic mathematical background is required in accounting for operations like addition, subtraction, multiplication and division. All types of exchange bills, bonds and other securities owned by a merchant that is payable to him are said as bills receivable.
By depreciation we mean that a value of an asset is decreasing as it is in use. Consigner is the owner of the goods or you can say he is the person who delivers the goods to the consignee.
The consignee is the person who receives the goods. Balancing means to equate both sides of the T-account i. You must be very good at statistics if you want to do well in accounting. Otherwise, with minimum knowledge you cannot manage your day to day transactions effectively in accounting. It is the residual value of an asset. The residual value is the value that any asset holds after its estimated life time.
Suppose you have to produce an additional unit of output. The estimated cost of additional inputs to produce that output is actually the marginal cost. Open-ended fund: open ended funds means investors can download and sell units of fund, at NAV related prices at any time, directly from the fund this is called open ended fund.
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 downloading the units or redownloading them, happen, in the secondary markets. Dividend option: investors who choose a dividend on their investments, will receive dividends from the MF, as when such dividends are declared.
Growth option: investors who do not require periodic income distributions can be choose the growth option. Equity funds: equity funds are those that invest pre-dominantly in equity shares of company. Types of equity funds: Simple equity funds Primary market funds Sectoral funds Index funds Sectoral funds: Sectoral funds choose to invest in one or more chosen sectors of the equity markets. Index funds: The fund manager takes a view on companies that are expected to perform well, and invests in these companies Debt funds: the debt funds are those that are pre-dominantly invest in debt securities.
Liquid funds: the debt funds invest only in instruments with maturities less than one year. Gilt funds: gilt funds invests only in securities that are issued by the GOVT. Balanced funds: Funds that invest both in debt and equity markets are called balanced funds.
Scheme takes over: if an existing MF scheme is taken over by another AMC, it is called as scheme take over. Meaning of load: Load is the factor that is applied to the NAV of a scheme to arrive at the price. Market capitalization: market capitalization means number of shares issued multiplied with market price per share.
Price earnings ratio: The ratio between the share price and the post tax earnings of company is called as price earnings ratio. Dividend yield: The dividend paid out by the company, is usually a percentage of the face value of a share. 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. 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. 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. Credit risk: Credit risk refers to the probability that a borrower could default on a commitment to repay debt or band loans