If you could analyze only one type of financial statement for your clients, which financial statement would you choose?
The interviewer is looking for your personal preference. Technically, is no right or wrong answer; however, you should consider the job description. You should recall if there was an expressed preference for the type(s) of financial statements they want you to be well versed in. Once you state your preference, explain why you chose that particular statement over the others.
Choose from the four main types of financial statements:
- Balance Sheets
- Income Statements
- Statement of Cash Flows
- Statement of Changes in Equity
"From a logical standpoint, the Statement of Cash Flows makes the most sense if you had to choose just one financial statement type to analyze. The cash flow statement would tell me the ins and outs of cash movement, current liabilities, investments, and operating needs."
