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JPMorgan Chase Mock Interview

Question 3 of 28 for our JPMorgan Chase Mock Interview

JPMorgan Chase was written by on April 10th, 2020. Learn more here.

Question 3 of 28

If you noticed that a company's balance sheet was showing increased amounts of accounts receivables, what future impacts to that company would you consider to be feasible?

At the root of this question, your interview will be looking to hear that you understand how the different lines on a company's balance sheet are related to each other. In your answer, be sure to point out your understanding of this as your job as an analyst with JPMorgan Chase will rely on your ability to do so.

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How to Answer: If you noticed that a company's balance sheet was showing increased amounts of accounts receivables, what future impacts to that company would you consider to be feasible?

Advice and answer examples written specifically for a JPMorgan Chase job interview.

  • 3. If you noticed that a company's balance sheet was showing increased amounts of accounts receivables, what future impacts to that company would you consider to be feasible?

      How to Answer

      At the root of this question, your interview will be looking to hear that you understand how the different lines on a company's balance sheet are related to each other. In your answer, be sure to point out your understanding of this as your job as an analyst with JPMorgan Chase will rely on your ability to do so.

      Written by Ryan Brunner on April 10th, 2020

      1st Answer Example

      "An organization's lines on a balance sheet all have impact on other lines. In the case that I was made aware of an increase in accounts receivable for an organization, I would note that cash flow could be directly impacted and give a higher chance that the organization didn't have enough money to operate. As well, the reduced value of assets is a real possibility for that organization."

      Written by Ryan Brunner on April 10th, 2020

      2nd Answer Example

      "In reality, an increase in amounts receivable can have both a positive and negative impact. In the short term, accounts receivable show up as current-period revenue and have a positive effect on income statements. But over the long-term, a large increase in amounts receivable has a negative impact on cash-flow for the company."

      Anonymous Interview Answers with Professional Feedback

      Anonymous Answer

      "The short answer is it depends. Initially, it could be seen as a positive because it displays money that is to be paid to us. In further analysis, it could be seen as a negative specifically to cash flow as this is only capital that will be paid to us down the line instead of in the current quarter."

      Marcie's Feedback

      Makes sense! Can you go into more detail about what this might mean for the company down the road? Consider also talking about the steps the company might take to mitigate any negatives from this situation. Good job!