Finance Interview Questions

32 Questions and Answers by
Bobbi has been a finance manager for over 15 years, with direct recruiting and hiring experience in her field.

Question 1 of 32

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

Finance Interview Questions

  1. 1.

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

  2. 2.

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

  3. 3.

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

  4. 4.

    What is goodwill and why do companies use it?

  5. 5.

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

  6. 6.

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

  7. 7.

    When should a company consider issuing debt instead of equity?

  8. 8.

    How is the income statement linked to the balance sheet?

  9. 9.

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

  10. 10.

    What is a Stock Split and Stock Dividend?

  11. 11.

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

  12. 12.

    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?

  13. 13.

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

  14. 14.

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

  15. 15.

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

  16. 16.

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

  17. 17.

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

  18. 18.

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

  19. 19.

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

  20. 20.

    What is deferred tax liability and what is its purpose?

  21. 21.

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

  22. 22.

    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?

  23. 23.

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

  24. 24.

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

  25. 25.

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

  26. 26.

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

  27. 27.

    What is working capital?

  28. 28.

    Tell me how to create a budget?

  29. 29.

    Walk me through the financial statements?

  30. 30.

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

  31. 31.

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

  32. 32.

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