Free Finance Interview Questions for Better Hires

Job interviews are common in any professional setting. They are part of the standard hiring process, and for a good reason. Each industry presents unique needs and, therefore, presents special interview questions. If you’re gearing up for an interview in the Finance industry, you’re in luck. This article includes a list of common Finance job interview questions.

But before we show you these examples, it’s important to understand the main premise behind job interviews. Let’s begin.

What is a Job Interview?

A job interview is a meeting between a potential employee and an employer. It is a process where the employer determines a candidate’s suitability for a role. The interview is typically structured as a series of questions or queries to assess a person’s skills, experience, qualifications, knowledge, and personality

Hiring managers tailor job interviews to match industry standards and a specific role’s requirements. The series of questions will differ between industries and functions because their purpose is to elicit key information. 

Interviews are both a way to verify a candidate’s credentials and to gain insight into aspects outside of a candidate’s resume. A job interview can reveal things like a candidate’s communication skills, manners, and temperament.

Interviews can also reveal whether a candidate truly is a good fit for the company in terms of vision and goals. An employee who shares a company’s vision is more likely to act with loyalty and passion than one who’s only there for the money. 

The Importance of Job Interviews

Job interviews are an important stage in the hiring process. They serve as a layer of security and as a means to verify a candidate’s suitability. Job interviews provide recruiters with an opportunity to learn more about the people applying for a post in their company.

Moreover, it allows candidates to explain the details in their resumes that may have been misinterpreted by recruiters. 

For instance, an employment gap will usually raise a few concerns because it can indicate a lack of commitment. At first glance, a recruiter may count an employment gap as a negative.

But not all employment gaps are bad. Some gaps are justifiable. Some people take a hiatus from work for many reasons. The interview process gives candidates the opportunity to clarify details pertinent to their credentials. 

On the one hand, it helps recruiters detect fraudulent candidates. On the other hand, it ensures that recruiters don’t turn away qualified people unnecessarily. Remember that skilled people are one of the keys to a company’s success.

These functions are especially important in the finance industry, where employees handle large sums of client money. The failure to perform their role won’t just hurt company revenues. They may even lead to legal action.

If you’re interviewing a candidate for a finance-related role, here are some interview questions that can help you yield key information. They can also help you evaluate a candidate’s breadth of knowledge.

Finance Job Interview Questions

  • How can a Company Show Positive Net Income but go Bankrupt?
  • What does Working Capital Mean?
  • Why do Capital Expenditures Increase Assets When other Cash Outflows don’t and Instead Create Expenses?
  • Explain a Cash Flow Statement.
  • Can a Company Show Positive Cash Flows While Facing Financial Problems?
  • What do you mean by Preference Capital?
  • What do you mean by Hedging?
  • Can you explain RAROC?
  • What do you mean by Fair Value?
  • What do you mean by the Secondary Market?
  • How do Cost Accounting and Costing differ?
  • What are the three types of financial statements?
  • Which type of financial statement suits our company best?
  • When should a company issue debt instead of equity?
  • What makes a good financial model?
  • What is preference capital?
  • Are you willing to relocate?
  • What is EPS?
  • What are your greatest achievements in your finance career?
  • Why did you choose a career in Finance?
  • Can you explain your steps in preparing a financial statement?
  • What is working capital?
  • What is investment banking?
  • Can you explain the concept of liquidity?
  • What is an NPA?
  • What is a dividend growth model?
  • Can you explain the secondary market?
  • What is Deferred Tax Liability?
  • What is financial risk management?
  • Can you explain the types of bonds?

General Job Interview Questions

  • Why do you want to work for our company?
  • Are you willing to relocate?
  • What days and hours are you ready to work?
  • What are some obstacles you’ve encountered in a previous role?
  • How did you solve them?
  • What do you know about our company?
  • What is your greatest career achievement?
  • Do you play sports?
  • What motivates you?
  • Have you ever had any problems with integrity?

In Summary

Finance job interview questions are the main tools an interviewer uses to gain valuable insight into a candidate’s expertise and suitability. These questions test the knowledge and mastery a candidate has over procedures and rules related to the role.

Whether you’re a recruiter or a candidate, you’ll find that mastering these questions will help you better prepare for your interview. For recruiters, this means being able to test a candidate thoroughly. 

For candidates, this means being able to answer the questions correctly and accurately. Good luck to both types of readers! We hope this information guides you well.

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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