10 Finance & Accounting interview questions (with answers)
If you know the answer to all of these questions...
You'll ROCK your next interview
Let's get into it ...
If you know the answer to all of these questions...
You'll ROCK your next interview
Let's get into it ...
1๏ธโฃ What are the 3 financial statements, and how are they connected?
The 3 financial statements are the Profit and Loss, the Balance Sheet, and the Statement of Cash Flows.
The 3 financial statements are the Profit and Loss, the Balance Sheet, and the Statement of Cash Flows.
The P&L connects to the Balance sheet via an account called Retained Earnings
And the Cash flows pulls balances from both the P&L and Balance Sheet
And the Cash flows pulls balances from both the P&L and Balance Sheet
2๏ธโฃ Whatโs the difference between Cash vs Accrual accounting?
Cash accounting for the most part means you classify money in as income, and money out as expenses
Accrual accounting means you classify income only when itโs earned, and expenses only when they are incurred
Cash accounting for the most part means you classify money in as income, and money out as expenses
Accrual accounting means you classify income only when itโs earned, and expenses only when they are incurred
3๏ธโฃ What is Deferred Revenue?
Deferred Revenue represents the $$ amount of goods or services you owe to your customers
Deferred Revenue represents the $$ amount of goods or services you owe to your customers
4๏ธโฃ How do journal entries work?
Journal entries help communicate which accounts on your general ledger are increasing or decreasing.
They are denoted via Debits and Credits, and must always match one another
Journal entries help communicate which accounts on your general ledger are increasing or decreasing.
They are denoted via Debits and Credits, and must always match one another
5๏ธโฃ Whatโs a bank reconciliation, and why is it important?
Bank reconciliations allow you to compare & match the balance in your bank accounts to the amounts reported in your General Ledger
These are crucial as with cash balances, there can be no room for interpretation
Bank reconciliations allow you to compare & match the balance in your bank accounts to the amounts reported in your General Ledger
These are crucial as with cash balances, there can be no room for interpretation
6๏ธโฃ What is an accrued expense?
An accrued expense is an expense incurred, but not yet paid
It can also represent an expense incurred in which a bill has not been received, resulting in an estimate
An accrued expense is an expense incurred, but not yet paid
It can also represent an expense incurred in which a bill has not been received, resulting in an estimate
7๏ธโฃ What are workpapers, and how should you organize them?
Workpapers showcase the supporting calculations for entries recorded in your general ledger, often times prepared in excel.
Workpapers showcase the supporting calculations for entries recorded in your general ledger, often times prepared in excel.
Itโs important for these to not only be accurate, but also easy for someone else to read & understand
8๏ธโฃ What are the chart of accounts, and how should they look?
Your chart of accounts represent the line items that show up on your P&L and Balance Sheet
It's important to design these accounts in a manner in which readers can understand whatโs happening easily
Your chart of accounts represent the line items that show up on your P&L and Balance Sheet
It's important to design these accounts in a manner in which readers can understand whatโs happening easily
9๏ธโฃ Whatโs a contra account and how does it work?
A contra account is an account in a section that behaves in the opposite manner of the accounts in that section.
An example can be a discount (contra revenue), and accumulated depreciation (contra asset)
A contra account is an account in a section that behaves in the opposite manner of the accounts in that section.
An example can be a discount (contra revenue), and accumulated depreciation (contra asset)
๐ How do you build a statement of cash flows?
You can easily build a statement of cash flows via the indirect method by taking the net โฒ in your balance sheet, as well as your net income
You can easily build a statement of cash flows via the indirect method by taking the net โฒ in your balance sheet, as well as your net income
It is most commonly presented via your:
1. Cash from Operating Activities
2. Cash from Investing Activities
3. Cash from Financing activities
1. Cash from Operating Activities
2. Cash from Investing Activities
3. Cash from Financing activities
There you have it - if you know the answers to these...you're hired!
๐ฃ๐ฆ: ๐๐ฒ๐๐ฒ๐น ๐๐ฝ ๐๐ผ๐๐ฟ ๐ฐ๐ฎ๐ฟ๐ฒ๐ฒ๐ฟ ๐ฎ๐ป๐ฑ ๐ด๐ฒ๐ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ & ๐๐ฐ๐ฐ๐ผ๐๐ป๐๐ถ๐ป๐ด ๐๐ถ๐ฝ๐ ๐น๐ถ๐ธ๐ฒ ๐๐ต๐ถ๐ ๐ฑ๐ฒ๐น๐ถ๐๐ฒ๐ฟ๐ฒ๐ฑ ๐ฟ๐ถ๐ด๐ต๐ ๐๐ผ ๐๐ผ๐๐ฟ ๐ถ๐ป๐ฏ๐ผ๐ :
yourcfoguy.com
๐ฃ๐ฆ: ๐๐ฒ๐๐ฒ๐น ๐๐ฝ ๐๐ผ๐๐ฟ ๐ฐ๐ฎ๐ฟ๐ฒ๐ฒ๐ฟ ๐ฎ๐ป๐ฑ ๐ด๐ฒ๐ ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ & ๐๐ฐ๐ฐ๐ผ๐๐ป๐๐ถ๐ป๐ด ๐๐ถ๐ฝ๐ ๐น๐ถ๐ธ๐ฒ ๐๐ต๐ถ๐ ๐ฑ๐ฒ๐น๐ถ๐๐ฒ๐ฟ๐ฒ๐ฑ ๐ฟ๐ถ๐ด๐ต๐ ๐๐ผ ๐๐ผ๐๐ฟ ๐ถ๐ป๐ฏ๐ผ๐ :
yourcfoguy.com
Loading suggestions...