If you are planning to pursue an MBA in Finance, there are numerous hurdles you need to overcome — your GMAT exam, your application submissions before deadlines, your budget planning and one very essential being the face-to-face interview. In this article, we are going to focus only on the interview section and the MBA finance questions you will be asked.
The way you approach an interview can directly impact your admissions. Hence, it’s important to dedicate time to prepare for it, which is an important component of the business school admission process. Now, if you are wondering what the interviewer might ask you, then we’ve collated a list of commonly asked MBA finance interview questions for you.
An MBA in Finance prepares you in financial sectors like investment, banking and insurance. Hence, if you are selected for an interview, be prepared to answer technical questions related to finance and accounting. Knowing the expected interview questions in advance gives you time to come up with the best possible answers, which will reduce your stress and help you perform well. To begin with, below are some interview questions that could be useful for you during your preparations.
Common MBA Finance Interview Questions:
No matter how confident you are, if you are not prepared to answer basic interview questions, you are bound to fumble and not make a very good impression. Hence, preparation is key! Moreover, while answering finance interview questions, make sure your responses are brief and to the point. For eg: If the question is to define Real Accounts, you have to first explain what Real accounts are, with some examples, and then list out the types of real accounts. You need not add unnecessary information to impress the interviewer. Adding unnecessary details can make your answer sound confusing.
Here are some similar MBA finance interview questions:
- Why do cash outflows such as salary payments, taxes, etc. create an expense on the income statement that reduces equity via retained earnings, while capital expenditures increase assets (PP&E)?
- Explain cash flow statements.
- Define working capital.
- Explain the differences between profit and revenue.
- Can a company go bankrupt and show positive net income at the same time?
- Imagine I bought a piece of equipment. What could be the impact of this on the 3 financial statements? Explain.
- What is the link between the income statement and the balance sheet?
- Define goodwill with some examples.
- What is a deferred tax liability and why might one be created?
- Tell us something about capital budgeting.
We hope these commonly asked MBA finance interview questions will help kick-start your interview prep. Besides, while considering the possible answers for these questions, make sure it showcases your skills and passion for the business finance world. Moreover, remember, preparation is essential to cracking any interview. One of the best ways to do this is by taking mock interviews. Hence, prepare thoroughly so that you don’t miss out on a good opportunity.
- How do I prepare for an MBA Finance interview?
The first and foremost tip to prepare for an MBA finance interview is to do your research about the course and college, next, ensure that your resume is checked by someone else for any inaccuracies, and have some examples ready to talk about your achievements. Brush up on your knowledge of Accounts and Finance and finally prepare to answer the most straightforward question on why you want to pursue an MBA in Finance.
- What are the most common interview questions for MBA Finance?
Some of the most common questions you will come across for an MBA in Finance degree are — how to calculate Income tax, how does Private Banking work, what is the difference between Revenue and Profit, eExplain cash flow statements, define working capital, etc.
- What are the basic questions of Finance?
Since you are yet to begin your study of an MBA degree in Finance, you are likely to be asked only basic questions of Finance. It is advisable to brush up on your basics and be prepared to answer questions like — how to explain a cash flow statement, how can a company show positive net income but go bankrupt, define goodwill with some examples.