ACCOUNTING INTERVIEW QUESTION FOR MASTER PROGRAM CANDIDATES- SOLUTION TO YOUR STRUGGLE
Are you preparing for an accounting interview? There is a lot of competition in the job market nowadays for the position of accounting and you need to be well-prepared. This article will list some of the common accounting interview questions along with answers to help you ace it.
Accounting is an important part of any organisation and they usually hire someone who has good knowledge in the field. It is popularly known as the language of business and is core to the growth of an organisation. If you want, you can improve your skills with a Master Program certification. We’ve compiled the most frequently asked accounting interview questions along with what we believe are the best answers. The key to acing an interview is practice, so be sure to check out our interview guides for finance, FP&A, equity research, and more.
If I had only 1 statement and wanted to review the overall health of a company, which statement would I use and why?
Cash is king. The cash flow statement gives a true picture of how much cash the company is generating. That being said, it’s important to highly that all three statements truly are required to get a full picture of the health of a company. Learn more about how the three financial statements are linked.www.iibmindia.in
What happens on the income statement if inventory goes up by $10?
Nothing. This is a trick question. The only impact will be on the balance sheet and cash flow statement.
Walk me through the 3 financial statements?
The balance sheet shows a company’s assets, its liabilities and shareholders’ equity. The income statement outlines the company’s revenues and expenses. The cash flow statement shows the cash flows from operating, investing and financing activities.
What does having negative working capital mean?
Negative working capital is common in some industries such as grocery retail and the restaurant business. For a grocery store, customers pay upfront, inventory moves relatively quickly but suppliers often give 30 days (or more) credit. This means that the company receives cash from customers before it needs the cash to pay suppliers. Negative working capital is a sign of efficiency in businesses with low inventory and accounts receivable. In other industries, negative working capital may signal a company is facing financial trouble.www.iibmindia.in