Financial Planner Interview Preparation Guide
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Financial Planner related Frequently Asked Questions by expert members with professional career as Financial Planner. These list of interview questions and answers will help you strengthen your technical skills, prepare for the new job interview and quickly revise your concepts

42 Financial Planner Questions and Answers:

1 :: Explain me how do you cope with busy, stressful periods?

Answer that by staying organised and keeping a strict diary you find that stress does not become a real issue. As soon as you identify a possible delay due to high work volumes you raise this with your manager to see if the work can either be reallocated or given priority.
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2 :: Tell us how do you deal with authority?

Say that you deal with authority as you deal with customers - with integrity, professionalism and politeness.
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3 :: Please tell us are you good at solving problems?

Not all administrators need to be excellent problem solvers so if you are not the best, be honest and say so. You could say that you are not good at solving problems but you understand the skills of your colleagues well and will always be able to persuade somebody to assist.
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4 :: Tell me who Do You Admire Most and Why?

“The why is typically much more important than the whom, So identify someone who has qualities you admire or has done something you aspire to do, and clearly articulate the specific reasons you admire that person. Avoid someone who could be controversial, if at all possible.”

With more businesses focusing on culture and fit, this question allows interviewers to see if your values mesh with the company’s.
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5 :: Do you know what is working capital?

By definition, working capital is current assets minus current liabilities. The working capital figure shows a financial manager how much of an organization's cash is tied up in items such as accounts receivables and inventory. It also indicates how much cash is going to be required to pay off short term debt and obligations over the next year.
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6 :: Do you know what is a deferred tax liability and what is its purpose?

A deferred tax liability is just the opposite of a deferred tax asset. The deferred tax liability occurs when a tax expense reported on the income statement is not paid to the IRS during the same period it is recognized--it's paid at a future date. Deferred tax liabilities can result when there are differences in depreciation expense between book reporting (GAAP) and IRS reporting which lead to differences income as reflected on a companies income statement versus what's reported to the IRS--and which results in lower taxes payable to the IRS (in the short run).
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7 :: Tell me even if you were generally happy with a former manager, go back to a time when you were not as content. Why was this the case? Did the situation improve? Why?

A multi-part question such as this will reveal how your prospective finance manager navigates challenging waters. Do they rise to the occasion, communicate clearly and foster win-win partnerships, or are they more likely to say nothing and carry-on. Ultimately, a finance manager is a liaison to several different departments, supporting them to achieve their strategic objectives, while managing their own team. You need a strong problem solver and communicator in this role.
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8 :: Explain me why are increases in accounts receivable a cash reduction on the cash flow statement?

Net income has to be adjusted to reflect an increase in accounts receivable since the company never actually received the funds. As the cash flow statement begins with net income, it shows a cash reduction what accounts received increases.
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9 :: Suppose a company purchases a piece of new equipment. Explain the impact of the purchase on the income statement, balance sheet, and statement of cash flows?

At the time of the purchase, there is a cash outflow (cash flow statement) and PP&E goes up (balance sheet). Over the life of the asset it is depreciated. This shows up a reduction in net income (income statement) and PP&E (balance sheet) decreases by the amount depreciated. At the same time retained earnings (balance sheet) also goes down. However, the depreciation is added back in the cash from operations section (cash flow statement) as it is a non-camsh expense the reduced net income.
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10 :: Tell me why do capital expenditures increase an organization's assets (PP&E), while other expenditures, like paying taxes, employee salaries, utility bills, etc. do not increase an organization's asset base, but instead show up as expenses on the income statement that reduce equity via retained earnings?

Unlike general expenses that provide benefit over a short period time (i.e., employee's work, taxes, etc.), capital expenditures provide benefit over a longer period of time. Due to the duration of their estimated benefit--usually several years--capital expenditures are capitalized on the balance sheet, where shorter term expenditures are expensed on the income statement. This is the difference between an asset and an expense.
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