Top 100 Finance Interview Questions

Top 100 Finance Interview Questions
Q: How would you choose to buy a particular stock?
Q: Why might a company choose debt over equity financing?
Q: Where is the market going?
Q: What major factors drive mergers and acquisitions?
Q: What is goodwill? How does it affect net income?
Q: What is working capital?
Q: What are deferred taxes?
Q:Can you describe a recent situation in which you accomplished an important objective in a brief period of time?
Q: How do you take challenges?
Q: Are you willing to work in shifts?
Q: What is the thing you like the most in the world? Why?
Q: What is the thing you dislike the most in the world? Why?
Q: What does success mean to you?
Q: How do you define failure?
Q: What is contingency liability?
Q: How do you value a company?
Q: You've been asked to reduce the budget by 8%. What criteria will you use in identifying the budget reductions?
Q: Who is a more senior creditor, a stockholder or a bondholder?
Q: What is the difference between accounts and finance?
Q: Explain fixed cost, variable cost and marginal cost?
Q: What is Break Even Point? What does it signify?
Q: What is the purpose of chargeback?
Q: What is MIS report and do you prepare it?
Q: Why are you leaving the organization you work for?
Q: How much time do you need to join the organization?
Q: Are you aggressive?
Q: What makes you a good manager?
Q: What motivates you the most?
Q: What skills and abilities do you have?
Q: Is there anything you want to ask?
Q:If you were hired for this job, what areas would you make an immediate impact?
Q:In what areas do you think you will need guidance?
Q:How will you approach learning this "new" job?
Q:How will you approach acquiring new skill sets?
Q:Describe the most difficult situation you have faced in your career and how you managed it.

Q:Describe some problems you encountered in your most recent position and ow you resolved them.
Q:What specific steps do you utilize in solving workplace problems?
Q: What experience have you had in fixed assets accounting?
Q: How can you create Budgets for daily pods?
Q: How to use special and pair value sets?
Q: What is consolidation ?
Q: Why depreciation is not charged on land?
Q: Can u explain me the flow in General ledger?
Q: What is meant by group chart of accounts in sap fico ?
Q: Describe yourself.
Q: Tell me about your educational background?
Q: What do you know about the organization?
Q: How do you justify the job?
Q: Why do you want this job?
Q: What do you want to work with this organization?
Q: Where do you see yourself five years down the line?
Q: What are your strengths?
Q: What is our company’s stock price? How would you forecast the future stock price for next year?
Q: How important does Accounts receivable for small business and why?
Q: What are the goals of Accounts receivable?
Q: What are the powerful softwares that could be used for doing efficient Accounts receivable?
Q: What are the strategies to be followed for preparing Accounts receivable?
Q: How debtors play its role in Accounts receivable?
Q: Who is responsible for maintaining the Accounts receivable in an organization?
Q: How important is Accounts receivable to business?
Q: What do you mean by Accounts payable cycle?
Q: What is Trial Balance?
Q: What is difference between account payable and bills payable?
Q: How to account freight cost, handling charges,purchase tax at the time of raising a Purchase Order?
Q: What is Reconciliation Statement ?
Q: How do you answer this question "what is company code".
Q: Is it necessary to create Sundry creditors?
Q: What is the meaning of TDS? How it is charged?
Q: What is interest on Capital?
Q: What is Pool rate?
Q: What the procedures or process involved in the preparation for the audit?
Q: What is Web Audit?
Q: What are the different types of internal audit?
Q: What is the difference between an internal audit and the annual external audit?
Q: What is Internal Audit?
Q: What is meant by Single Audit process?
Q: Where is Audit Data Stored?
Q: What is meant by computer auditing?
Q: What are the reasons for getting audited?
Q: What do 'income assessed' and 'non-income assessed' mean?
Q: What is authorized share capital?
Q: What is paid up share capital?
Q: How much depreciation to be calculated for fixed assets older than 5 years?
Q: What is accumulated depreciation?
Q: What are the journal entries which get passed from asset purchasing to asset retirement?
Q: What is fictitious assets?
Q: What is the difference between the different depreciation methods?
Q: What are the activities present in payroll task?
Q: What is Payroll Disbursements Journal?
Q: What are the steps in Payroll Management?
Q: What is the software efficient for carrying out payroll tasks?
Q: What is the difference between paycheck and Payslip?
Q: How advantage is payroll for small business?
Q: What is Payroll Journal?

Finance Interview questions Faqs

Finance Interview questions Faqs

1) Difference between long term loan and long term debt?

2) Explain liquidity ratios?

3)Types of Depriciation?

4) Define Authorized Capital?

5) Define Dividend and its types?

6) What do you mean fundamental analysis?

7) Explain the meaning of options and derivatives?

8 ) Which Stock Exchange belongs to which country? a) NIKKEI b) DOW C) NYSE

9) What is a Mutual Fund and what does AMC stand for?

10) Difference between Bear and Bull Markets?

11) Explain RONA?

12) What can you find in a P&L Account?

13) What do you mean by IPO and define face value of a share?

14) Difference between Mergers and Acquisitions?

15) Define some GAAP accounting priniciples?

16) Describe NASDAQ?

17) What does a call and a put option mean?

18) What is amalgamation?

19) Explain European Markets?

20) Define a) Networth b) Preference capital c) debenture d) Treasury Bills e) Hedging

21) Who is called a lameduck in a stock exchange?

22) Reduce budget by 10%. Which criteria should be used to identify budget reductions?

23) What is IRR and Discounted cashflow?

What is a stop or stop loss order?

What is a stop or stop loss order?
In FINANCIAL INFORMATION EXCHANGE (FIX)  protocol A stop order ( also stop loss order) is an order to buy ( or sell) a security once the price of the security has  reached  above ( or fall below) a specified stop price. When the specified stop price is breached, the stop order is entered as a market order ( no limit).

What is a market order?

What is a market order?
In FINANCIAL INFORMATION EXCHANGE (FIX) protocol a market order is a buy or sells order to be executed by the broker immediately at current market prices. This could prove very dangerous in terms of price because it doesn't care at what price its buying or selling securities.

What is limit order?

What is limit order?
As per FINANCIAL INFORMATION EXCHANGE (FIX)  protocol A limit order is an order to buy a security at no more  than a specific Price (can be bought lower price) or sell at not less than a specific price (can be sold at higher price). This gives the customer some control over the price at which the trade is executed, but may prevent the order from being executed. a limit orders can be executed at on price or better price.

Financial Information exchange What is?

Financial Information exchange What is?
The Financial Information exchange (FINANCIAL INFORMATION EXCHANGE (FIX)  protocol is an electronic communications protocol for international real-time exchange of information related to securities transactions and markets. most of the electronic trading is done in FINANCIAL INFORMATION EXCHANGE (FIX)  , though different exchanges has there own native protocol but most of the broker supports FINANCIAL INFORMATION EXCHANGE (FIX)  protocol.

Difference between an ECN and an exchange?

What is the difference between an ECN and an exchange?
ECN is an Electronic Communication Network ,An electronic system that attempts to eliminate the role of a third party in the execution of orders entered by an exchange market maker or an over the counter market maker, and permits such orders to be entirely or partly executed.
An ECN connects major brokerages and individual traders so that they can trade directly between themselves without having to go through a middleman. Sometimes ECNs are also referred as dark pool.

Difference between Sell Orders and Short Sell Orders?

Difference between Sell Orders and Short Sell Orders?
Sell means selling your own securities , short selling means selling securities without owning them normally broker lend securities to user.there are
two kinds of short sell e.g. Covered Short Sell and naked Short Sell, most of the stock exchanges doesn't allow naked short sell because its normally abused to take stock price downward.

Company Finance Team Interview Questions

Company Financial Team Interview Questions
Q: Where is the market going?
Q: What major factors drive mergers and acquisitions?
Q: What is goodwill? How does it affect net income?
Q: What is working capital?
Q: What are deferred taxes?
Q:Can you describe a recent situation in which you accomplished an important objective in a brief period of time?
Q: How do you take challenges?
Q: Are you willing to work in shifts?
Q: What is the thing you like the most in the world? Why?
Q: What is the thing you dislike the most in the world? Why?
Q: What does success mean to you?
Q: How do you define failure?
Q: What is contingency liability?
Q: How do you value a company?
Q: You've been asked to reduce the budget by 8%. What criteria will you use in identifying the budget reductions?
Q: Who is a more senior creditor, a stockholder or a bondholder?
Q: What is the difference between accounts and finance?
Q: Explain fixed cost, variable cost and marginal cost?
Q: What is Break Even Point? What does it signify?
Q: What is the purpose of chargeback?
Q: What is MIS report and do you prepare it?
Q: Why are you leaving the organization you work for?
Q: How much time do you need to join the organization?
Q: Are you aggressive?
Q: What makes you a good manager?
Q: What motivates you the most?
Q: What skills and abilities do you have?
Q: Is there anything you want to ask?
Q:If you were hired for this job, what areas would you make an immediate impact?
Q:In what areas do you think you will need guidance?
Q:How will you approach learning this "new" job?
Q:How will you approach acquiring new skill sets?
Q:Describe the most difficult situation you have faced in your career and how you managed it.
Q:Describe some problems you encountered in your most recent position and ow you resolved them.
Q:What specific steps do you utilize in solving workplace problems?
Q: What experience have you had in fixed assets accounting?
Q: How can you create Budgets for daily pods?
Q: How to use special and pair value sets?
Q: What is consolidation ?
Q: Why depreciation is not charged on land?
Q: Can u explain me the flow in General ledger?
Q: What is meant by group chart of accounts in sap fico ?
Q: How important does Accounts receivable for small business and why?
Q: What are the goals of Accounts receivable?
Q: What are the powerful softwares that could be used for doing efficient Accounts receivable?
Q: What are the strategies to be followed for preparing Accounts receivable?
Q: How debtors play its role in Accounts receivable?
Q: Who is responsible for maintaining the Accounts receivable in an organization?
Q: How important is Accounts receivable to business?
Q: What do you mean by Accounts payable cycle?
Q: What is Trial Balance?
Q: What is difference between account payable and bills payable?
Q: How to account freight cost, handling charges,purchase tax at the time of raising a Purchase Order?
Q: What is Reconciliation Statement ?
Q: How do you answer this question "what is company code".
Q: Is it necessary to create Sundry creditors?
Q: What is the meaning of TDS? How it is charged?
Q: What is interest on Capital?
Q: What is Pool rate?
Q: What the procedures or process involved in the preparation for the audit?
Q: What is Web Audit?
Q: What are the different types of internal audit?
Q: What is the difference between an internal audit and the annual external audit?
Q: What is Internal Audit?
Q: What is meant by Single Audit process?
Q: Where is Audit Data Stored?
Q: What is meant by computer auditing?
Q: What are the reasons for getting audited?
Q: What do 'income assessed' and 'non-income assessed' mean?
Q: What is authorized share capital?
Q: What is paid up share capital?
Q: How much depreciation to be calculated for fixed assets older than 5 years?
Q: What is accumulated depreciation?
Q: What are the journal entries which get passed from asset purchasing to asset retirement?
Q: What is fictitious assets?
Q: What is the difference between the different depreciation methods?
Q: What are the activities present in payroll task?
Q: What is Payroll Disbursements Journal?
Q: What are the steps in Payroll Management?
Q: What is the software efficient for carrying out payroll tasks?
Q: What is the difference between paycheck and Payslip?
Q: How advantage is payroll for small business?
Q: What is Payroll Journal?

Finance Accounts Interview Questions

Finance Accounts Interview Questions
1.How would you feel your skills garnered in college will help you in the professional world?
In the university, I have been exposed to a number of different accounting & finance systems e.g. EasyFinance, SmartNumber, UberAccount, NetSuite, SAP and a few others. Not only were we, the students, exposed to the theory – we also had some deep practical experience in them.
While the name and proprietary of each system differs, essentially they all require a set of good knowledge and expertise in accounting and finance subjects. So I would not have much issue in adapting to distinguished system because I know my basic accounting exposure will prepare me for the working and professional world.
2.What are your greatest strengths you will bring to the company?

I am fast and meticulous – an important combination of attributes for this line of work. Coupled with my competency and speedy adaptation to new environment, I can assure you someone who would make a difference in your organization. I have proven this in the past; I know I will do it again.
Additionally, I have outstanding interpersonal skills, which would benefit this organization in this service oriented business. I develop and maintain rapport with team mates and customers seamlessly, developing respect internally and externally for the company.
3.In your opinion, what would be the main challenges in your role, if you take up this job?
I have been made understand before that the SAP system is in the process of implementation now. Since not everyone in the team is well verse in this system, training and development would be a major focus. I foresee my main challenge, as a certified SAP practitioner, to be leveraging the knowledge and make sure adequate support to the team members.
However, while this can be a challenge, I believe in a couple of months, we will start seeing the benefits of the implementation. The robustness of the SAP system is a major plus, which I believe can help the company streamlining and consolidating the business data with ease and convenience.
4.In this line of work, what makes a good superior?
In my opinion, in any line of work, we need an inspiring leader or superior. He or she may have different style of leading and giving instructions, but the important thing is he knows how to drive the subordinates to loving what they are doing, accomplishing all the tasks and deliver the job beyond the expectations. Winning teams in common have inspiring leaders.
5. What makes you choose finance/accounting?
I love numbers. Not only that, I am good in them. My academic results are proofs of my capability in this line. I know I can grow really big in this career.
6.What interests you about this position?
This is one step ahead of my current position. I have been working with the current company for five years now. With the amount of experience and exposure, I believe the time is right for me to make a move. In other words, I am prepared to take up a more leadership role.
7.It seems the finance team in your current organization is bigger than us. Why you choose this company?
First, I believe growth does not necessarily involve the size of a team or department. It’s about challenges and how you cope with them. Also, I have been following up closely with the development of this company and let me say that I never underestimate this company’s potential. What I have is admiration.
Even though it’s only been in this country for only about 5 years, its long time existence for over half a century deserves some respect. I know that this company can only grow in the right direction.
8.What are important criteria for your next job?
I consider myself someone who is not contented with only the routine work. I would like my potential to be challenged, fulfilled and realized. What important is, I get thrown with new challenges, and given a chance to prove what I can do best.
9.In finance/accounting, is professional qualification such as ACCA considered better than an MBA?
That depends on how we foresee ourselves to grow. Professional qualifications such as ACCA, CIMA is important to stamp ourselves as authority in the subject matter and will be even more important when we want to start our own accounting practice.
An MBA is on the other hand, prepares us for leadership position in major organizations and with the right recipe, one day, we can hold key position such as CEO or MD of public listed companies and may possibly make a lateral move from one industry to another.
10.How would you handle a new implemented finance/accounting system, of which you have no knowledge before?
There has to be a start to something new. To be honest, I am all excited to learn and acquire new skills and knowledge of any new accounting and finance system. The important thing is, I am given adequate time to adapt and learn.
I believe that these days, new system implementation comes with at least some basic training. This would be helpful, but with the right amount of time and space, I will be able to be competent and master this new system.