The moment you receive the acceptance letter from your dream B-school regarding the acceptance for one of the most prestigious degrees Master in Business Administration (MBA), clans ponder over the internet. And the search begins with the related keywords like ‘How to prepare MBA finance interview questions?’, ‘ What are the finance related questions can be asked in an MBA interview?’, ‘How to deal face finance related questions in an MBA interview?’ and many other.
Evidently, you’re facing an interview to get into an MBA course which deals with company’s accounting, finance and manpower management, hence, the adcom will check your proficiency with accounts and finance. Accounting and finance are the languages of business, we can’t deny the importance of these questions in an MBA interview. Below we have selected most common accounting questions you should expect to see during the recruiting process.The best strategy for approaching an MBA interview is preparing and practicing for your scheduled interview.
Here are the few strategic finance questions listed, which might help in cracking your MBA interview.
- Why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings?
- Walk me through a cash flow statement.
- What is working capital?
- Is it possible for a company to show positive cash flows but be in grave trouble?
- How is it possible for a company to show positive net income but go bankrupt?
- I buy a piece of equipment, walk me through the impact on the 3 financial statements.
- Why are increases in accounts receivable a cash reduction on the cash flow statement?
- How is the income statement linked to the balance sheet?
- What is goodwill?
- What is a deferred tax liability and why might one be created?
Hope the questions have given you an-insight about the types of questions can be asked during an MBA and will help you in gaining the future endeavors.
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