Common Finance Interview Questions for Aspiring Finance Associates, Analysts, and Managers

Common Finance Interview Questions for Aspiring Finance Associates, Analysts, and Managers | Finance | Emeritus


Aspiring professionals are entering the finance market at a difficult time. The advancement in technology has brought about a fundamental change in the way things function in the industry. As a result, everything is evolving, from processes to work culture. Therefore, it is getting difficult to pass an interview in one go.

We have put together some common finance interview questions and answers for aspiring finance professionals to help them pass the interview round with utmost finesse. These finance related interview questions will help you crack the interview and secure a promising job. But before we do that, let’s understand what recruiters seek in aspiring finance professionals.

What Are the Roles and Responsibilities of Finance Professionals?

Finance professionals carry out all the financial management functions of an organization. From acquiring resources to raising funds, they handle all finance-related activities of a business. Here are some of the roles and responsibilities of finance professionals that they carry out daily.

  • Analyze market trends and perform financial management functions to mitigate business risk.
  • Undertake activities that maximize the wealth of the company.
  • Take care of financial negotiations of the company with different financial negotiations.
  • Allocate company funds to different departments.
  • Monitoring all the company’s financial transactions and preparing a balance sheet at the end of the year to analyze the profit and loss of the organization.

A financial professional performs an array of duties in an organization. Therefore, we listed some of the roles and responsibilities of financial professionals that recruiters look out for above.
In the next part of the article, we will be looking at some of the finance interview questions that are regularly asked in interviews.

Finance Executive Interview Questions and Answers

A financial executive is a vital part of the finance department – they manage accountants, clerks, and other subordinates. In addition to that, they also overlook the company’s financial transactions and find ways to increase the organization’s funds. Therefore, while recruiting for the post, companies put aspiring candidates through rigorous rounds of interviews to test their capabilities. Here are some common finance interview questions and answers:

What is a cash flow statement?

A cash flow statement is a financial statement that represents the profit and loss incurred by a firm in a prescribed period. Interviewers often ask this question to test the technical abilities of a candidate. So, while answering this question, start with net income and explain other cash flow statements’ terminologies. In addition, you can also share your experience of preparing a cash flow statement in the past with your interviewer. Also, demonstrate the challenges you faced and how you overcame them.

What is working capital?

Working capital is summarized as current assets minus current liabilities. Interviewers ask these simple finance-related questions in the interview to understand the knowledge possessed by aspiring candidates. Therefore, brush up on some finance-related concepts that are frequently applied in everyday business.

What is the meaning of goodwill?

Goodwill is an intangible asset of the business that helps in boosting sales and profits. They result from a brand’s quality product or services and their after-sales services, among others.
As a finance executive, you would be responsible for increasing the company’s goodwill. So, hiring managers often ask this question to know if you are qualified to perform similar functions in their organization. So, diligently answer this question, highlighting your top skills and qualities.

Finance Associate Interview Questions

The finance associate’s primary duty is to offer support for various financial and accounting activities. Therefore, hiring managers frequently ask technical interview questions to test their skills and knowledge. Here are some finance associate questions often asked during the interview round.

How to prepare tax information?

The interviewer wants to know how you prepare tax information with this question. So, answer wisely, and demonstrate your process of preparing tax information. You can also share difficulties you faced while preparing tax information at the start and speak about how you overcame them.

Which financial software do you prefer?

Financial associates work on several financial software and need to know all software to qualify for the job role. The interviewer wants to evaluate your work experience and proficiency in different financial software with this question.

How do you reconcile account information?

A finance associate performs various duties, and reconciling accounts is one of them. Therefore, interviewers will ask this question to understand an aspirant’s knowledge of analyzing data and performing advanced accounting functions. So, while answering this question, remember to highlight your knowledge of different accounting functions. You can share instances where you carried out complex accounting procedures single-handedly.

Finance Analyst Interview Questions

A financial analyst’s job description is summarized as someone who helps businesses make the right financial choices. Financial analysts evaluate the market trends, financial instruments, financial reports, and others to offer business recommendations to organizations, which increases their profit and financial stability.
Here are some interview questions commonly asked by recruiters to financial analyst aspirants.

What is financial modelling?

Financial modelling analyses a company’s expenses and earnings. It is an essential function that forecasts the prospects of the company. As an aspiring finance analyst, you must be aware of the financial modelling process and have prior experience performing the function. The interviewer wants to know your knowledge of different financial processes with this question.

What is the best evaluation metric for analyzing an organization’s stock?

No metric evaluates the stock of an organization. The stock market is risky and unpredictable, so no metric or method will anticipate a company’s stock prices. An experienced and skilled financial analyst would be aware of it. It will reflect in their answer.

What are quarterly forecasting and expense models?

A quarterly forecast is summarized as the analysis that provides a clear picture of the future revenue and expenses. It is an important activity that helps in utilizing resources to the maximum. Meanwhile, an expense model helps understand different types of expense categories used in a particular work order. The interviewer will ask this question to test your accounting skills.
In the succeeding sections of the article, we’ll take you through some basic finance questions and technical finance interview questions for candidates who want to pursue archetypical finance job opportunities. Later, we’ll share some tips that will come in handy while preparing for the interview.

Basic Finance Interview Questions

  • How can a company have a positive income and still be bankrupt?
  • What do you mean by preference capital?
  • What is the meaning of hedging?
  • How are journals and ledgers different from each other?
  • What are the different types of financial statements?

Technical Finance Interview Questions

  • What is NPV, and why is it used?
  • What is the meaning of ratio analysis?
  • What is variance analysis?
  • What is EBITDA?
  • What would you choose- increase customer base by 1% or price by 1%?

How to Prepare for a Finance Interview?

Preparing for a finance interview can be a very exhausting process. From brushing up on different concepts to browsing through various finance interview questions, preparing for an interview is daunting.

You can take up different finance certification courses to brush up on your skills to ease the process. Emeritus India offers many finance certification courses that train aspirants in answering all kinds of finance related interview questions. We have partnered with various Indian and international institutes to offer an enriching curriculum that places you right in the league of top finance professionals.

About the Author

Content Writer, Emeritus Blog
Nikhil is a passionate and free-spirited writer with 4+ years of experience. He has a keen eye for the ever-evolving content landscape, which helps him craft captivating content across various genres. He writes about marketing, data science, and finance for the Emeritus Blog. Beyond work, Nikhil is a dedicated pet parent who loves leisurely walks with his beloved puppers.
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