Struggling with Accounting Questions in Finance Interviews? Seeking Guidance for Science Graduates

Dear All,

I have completed my MBA major in Finance and minor in HR. My graduation background is B.Sc (Electronics), and fortunately, I got a job in a finance company after my graduation. I completed my MBA simultaneously while working through the regular mode. Despite coming from a science background, I was able to manage finance subjects in my MBA and cleared it with a first-class distinction. However, during interviews, most of the questions I face are related to finance or accounting. While I can answer finance-related questions confidently, I struggle with accounting as I lack prior knowledge in that area due to not having studied it at the degree level.

All the questions posed to me are at the intermediate and degree levels, but since I didn't study accounting at those levels, I find myself at a loss. Could anyone provide guidance on the basic accounting questions commonly asked in interviews? I am able to progress through all the interview rounds, but my weakness in accounting is hindering my confidence.

Your suggestions would be greatly appreciated.

Thank you in advance.

Regards,
Rehan

As an MBA Finance graduate with a science background, facing accounting questions in interviews can be challenging. To improve your confidence and performance in these situations, here are some basic accounting questions commonly asked in interviews:

1. Define Assets, Liabilities, and Equity:
- Assets: These are resources owned by a company that have economic value.
- Liabilities: These are obligations a company owes to external parties.
- Equity: It represents the residual interest in the assets of a company after deducting liabilities.

2. Explain the Accounting Equation:
- The accounting equation is Assets = Liabilities + Equity. It shows how a company's assets are financed through debt (liabilities) and equity.

3. Differentiate between Revenue and Profit:
- Revenue: The total income generated by a business through its normal operations.
- Profit: The amount remaining after deducting expenses from revenue.

4. What is Depreciation?
- Depreciation is the allocation of the cost of a fixed asset over its useful life. It reflects the asset's gradual loss of value.

5. Describe the Accrual Basis of Accounting:
- Accrual accounting recognizes revenue when earned and expenses when incurred, regardless of cash flow.

6. Calculate Gross Profit Margin:
- Gross Profit Margin = (Revenue - Cost of Goods Sold) / Revenue. It measures a company's profitability.

7. Explain the Purpose of the Trial Balance:
- A trial balance ensures that debits equal credits in the accounting system before preparing financial statements.

By familiarizing yourself with these fundamental accounting concepts and questions, you can enhance your preparedness for accounting-related inquiries during interviews.