Which type of questions are asked in finance interviews?

[amisha-verma-82753cad (Amisha Verma)]

The interview questions you’ll be asked for each graduate job will be different since an employer wants to know if your personality, previous experience, and career ambitions are matched to the industry and position you’re interviewing for.

If you’ve been invited to an interview for a graduate finance position, we’ve compiled a list of some of the most common finance interview questions and answers for a variety of finance positions so you can feel prepared and confident going into any graduate finance interview! The interview questions you’ll be asked for each financial job vary depending on the type and seniority of the position. However, an employer will most likely offer generic finance-related interview questions to learn about your personality, aspirations, and why you want to work in the field to begin the conversation. Here are some sample answers to some of the most popular general finance interview questions:

Why did you choose finance?

‘Why do you want to work in the finance industry and this particular role?’ an employer might question at the start of an interview. An employer wants to know if you’re interested in the job for the correct reasons and that you’re serious about pursuing a career in finance by asking this question.

Asking yourself what genuinely motivates and interests you about finance is a fantastic method to prepare for this question. Is it the fast-paced nature, the tough parts, dealing with data, or something else that motivates you?

What drives you to succeed at work?

This finance interview question is intended to help an employer learn more about your work ethic and determine whether you would be a good cultural fit for the organization.

Consider what truly motivates you while answering this question: is it competition with others, meeting the demands of clients, or self-development? Whatever drives you, make sure you frame it in a way that reflects your enthusiasm for a career in finance.

When you have a tight deadline coming, how do you manage many tasks?

The finance business is fast-paced, and Finance Assistant responsibilities involve many activities to be completed within tight deadlines, from payroll to account management to invoicing follow-up. An company wants to know that you have the skills to complete various jobs under pressure and meet deadlines by asking this financial interview question. Some examples:

• Prioritization is critical when managing several activities with deadlines; it’s crucial to recognize which task is the most pressing and necessary to complete first.
• It’s necessary to monitor the progress of each task so that if one isn’t on track, it may be prioritized. Keeping track of each project is essential to complete duties on time.
• It is critical to communicate with others. It’s vital to share with a colleague or customer to understand the deadlines for each activity and then work with the team to distribute roles and keep everyone updated on progress.

Is it possible for a company have a positive net income but still go bankrupt?

While facing bankruptcy, a corporation might demonstrate positive net income via degrading working capital (by increasing accounts receivable and decreasing accounts payable) and financial strategies.

What Is Working Capital and What Does It Mean?

Working capital is the amount left over after current liabilities are subtracted from current assets. It shows how much cash is locked up in the business due to inventories and accounts receivable and how much cash is required to pay off the company’s short-term obligations (in the coming 12 months).

Why do capital expenditures increase assets but other cash outflows do not, resulting in expenses?

Capital expenditures are capitalised because they provide long-term advantages to the company. For instance, a new branch might bring in a lot of money for the company for a long period, while an employee’s labour will only benefit till the wages are paid, which is why they are there.

Is it possible for a company to have positive cash flows while experiencing financial difficulties?

Yes, even if a company is in financial problems, it can display positive cash flows by making illogical working capital improvements (delaying payables and selling inventory) or by not allowing revenue to move forward in the pipeline.

What does Preference Capital imply?

In simple terms, preferred capital is the sum raised by issuing preference shares. This is a hybrid technique of funding the company because it combines the benefits of both debentures and equity. When it comes to dividend payments, capital takes precedence over equity capital.