Finance Analyst Interview Preparation Guide
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Finance Analyst related Frequently Asked Questions by expert members with job experience as Finance Analyst. These questions and answers will help you strengthen your technical skills, prepare for the new job interview and quickly revise your concepts

59 Finance Analyst Questions and Answers:

1 :: Explain me what is working capital?

Working capital is defined as current assets minus current liabilities; it tells the financial statement user how much cash is tied up in the business through items such as receivables and inventories and also how much cash is going to be needed to pay off short term obligations in the next 12 months.
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2 :: Do you know what is goodwill?

Goodwill is an asset that captures excess of the purchase price over fair market value of an acquired business. Let’s walk through the following example: Acquirer buys Target for $500m in cash. Target has 1 asset: PPE with book value of $100, debt of $50m, and equity of $50m = book value (A-L) of $50m.

☛ Acquirer records cash decline of $500 to finance acquisition
☛ Acquirer’s PP&E increases by $100m
☛ Acquirer’s debt increases by $50m
☛ Acquirer records goodwill of $450m
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3 :: Tell me what does a Financial Analyst do?

The role of financial analysts is to audit or inspect the economy. Along with this, they also assist the industries and companies to decide in investment decisions for banks, corporations, investment firms and insurance companies. They are said to be the title for many chore responsibilities which can be budgeting, accounting, or cost analysis. The main aspect required to attend a financial analyst interview is to present your skills in analyzing the economic conditions and understanding the basic financial analysis.
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4 :: What is quarterly forecasting, expense models and updating revenue?

The analysis of expenses and revenue which is predicted to be produced or incurred in future is called quarterly forecasting. The product or the service and its respect and demand in the market are mentioned as revenues. At times when it is mentioned that revenues would boom, it means that profits will enhance and also the expenses would elevate when compared with incomes.
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5 :: Explain me what kind of salary do you expect as Finance Analyst?

This are some tricky interview questions for analyst and you would really lose it if you answer it straight away. Remember not to answer the question where you can frame your answer in a way where you can mention that it’s a tough question or ask the employer to tell you the range for the position. You can just answer that it depends on the financial analyst responsibilities and job roles.
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6 :: What are your career goals as Finance Analyst?

By asking this question the employer would test your ambition and ability to develop yourself and also plan for your future as a financial analyst. When you have not decided on the goals then mention that you’re busy with the organization and its duties and hence focus on long-term goals. If you have short term goals or career oriented goals then you can mention them that what you desire to become in the next 2 or 5 years.
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7 :: Pick one financial concept and explain it to me?

Break even point, this would be the analysis to determine the point at which revenue received equals the costs associated with receiving the revenue.
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8 :: Tell us why do you want to become a financial analyst?

I enjoy working with data and excel.
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9 :: Which is more beneficial, increase price by a percent, or increase customer base by a percent?

Increase customer base by a percent.
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10 :: Tell us what other factors should you consider besides NPV when selecting a project?

Period of project, incoming fund flow and cash out flow, market condition, work certification procedure and payment period, client reputation, forex flatuation chances, etc.
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