Finance Mock Interview

To help you prepare for your Finance interview, here are 32 interview questions and answer examples.

Finance was written by and updated on June 13th, 2018. Learn more here.

Question 1 of 32

What is the difference between cash base accounting and accrual accounting?

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List of 32 Finance Interview Questions & Answers

  1. 1.

    What is the difference between cash base accounting and accrual accounting?

  2. 2.

    Have you ever had a conflict with a boss? How was it resolved?

  3. 3.

    Why are increases in accounts receivable a cash reduction on the cash flow statement?

  4. 4.

    Is it possible for a company to show positive cash flows but be in grave trouble?

  5. 5.

    Please tell me how your experience would be a fit for this position? or Based upon the job description, what do you find most exciting about this job opportunity?

  6. 6.

    What is goodwill and why do companies use it?

  7. 7.

    If a company buys an asset, walk me through the impact on the 3 financial statements? The asset value is $1 million

  8. 8.

    What is working capital?

  9. 9.

    What is your experience level in working with CI or CIP?

  10. 10.

    Give me an example of how WACC can be used in a business?

  11. 11.

    What is ROI? Give an example of how your past employer measured ROI?

  12. 12.

    What is financial modeling? Do you have experience doing any type of financial modeling? If so, tell me about it?

  13. 13.

    Do you find finance and accounting to be similar or different?

  14. 14.

    Walk me through the financial statements?

  15. 15.

    Tell me how to create a budget?

  16. 16.

    Explain what is the most complex work you have done in Excel?

  17. 17.

    What happens on the income statement if inventory goes up by $10? Assuming you paid for it with cash.

  18. 18.

    Have you heard of DCF method? If so, what is it and what does it measure?

  19. 19.

    What is a deferred tax asset and what is its purpose?

  20. 20.

    What effect would an increase in accounts receivable have on the cash flow statement?

  21. 21.

    If you were the CFO, what would keep you up at night?

  22. 22.

    If there is $20,000 of aged accounts receivable that will be fully written off, what impact will this have on each of the financial statements?

  23. 23.

    What is a Stock Split and Stock Dividend?

  24. 24.

    How is it possible for a company to show positive net income but go bankrupt?

  25. 25.

    A company purchases new equipment, walk me through the impact on the 3 financial statements.

  26. 26.

    How is the income statement linked to the balance sheet?

  27. 27.

    Tell me an idea or suggestion you have made that was implemented in the finance area?

  28. 28.

    If I could use only one financial statement to review the overall health of the company, which statement would I use and why?

  29. 29.

    When should a company consider issuing debt instead of equity?

  30. 30.

    Explain to me what Beta is in your own words? Why is it so important?

  31. 31.

    What is deferred tax liability and what is its purpose?

  32. 32.

    If you could pick one stock, which would it be and why?