1. Tell me what is capital Expenditure?
Capital Expenditure is an amount incurred for acquiring the long term assets such as land, building, equipments which are continually used for the purpose of earning revenue. These are not meant for sale. These costs are recorded in accounts namely Plant, Property, Equipment. Benefits from such expenditure are spread over several accounting years.
2. Do you know what are Non recurring Duties?
☛ Preparation of financial plan at the time of company promotion
☛ Financial adjustments in times of liquidity crisis
☛ Valuation of the firm at the time of acquisition and merger etc.
3. Explain me what is Quick Decision Making?
Being the only owner of the business the sole trader takes all the decisions himself. He evaluates all the opportunities available and finds the solution to problems which makes decision making quick.
A position statement as it refers to a particular date. It is also referred to as Statement of Sources and Application of Funds. It informs about the various sources used by the organization which are technically known as liabilities to raise the funds which are referred as assets.
5. Explain name one major achievement in your career?
Choose one of your most notable achievements and why you felt it was important.
Keep it relevant to the finance position you are applying for. Discuss the challenges you faced and tell the interviewer how your achievement can help you succeed in your new position.
6. Tell me convention of Consistency?
This accounting convention proposes that the same accounting principles, procedures and policies should be used consistently on a period to period basis for preparing financial statements to facilitate comparison of financial statements on period to period basis. If any changes are made in the accounting procedures or policies, then it should be disclosed explicitly while preparing the financial statements.
7. Tell me mercantile or Accrual System of Accounting?
In this system, expenses and incomes are considered during that period to which they pertain. This system of accounting is considered to be ideal but it may result into unrealized profits which might reflect in the books of the accounts on which the organization have to pay taxes too. All the company forms of organization are legally required to follow Mercantile or Accrual System of Accounting.
8. Tell me can you persuade others to see your point of view?
In the finance industry financial professionals often have to persuade influential people to count on their expertise, follow their advice, and use their services.
Your interviewer will want to make sure you are able to determine the best approach to achieve what you want by influencing clients.
9. Operational and Situational Chief Financial Officer Interview Questions:
☛ What would you do if revenue forecasts for next year decreased?
☛ If you had to decide whether a possible investment is profitable, how would you do it?
10. Explain pitch our company as you would in a sales meeting?
An executive must be able to represent the company inside and outside of the workplace. If they can effectively describe what your company does and how they do it, you'll have a better idea of whether or not they can represent your business professionally.
11. Explain what are your 3 biggest accomplishments?
This question gives me a lot of answers, because I can see what the person considers an accomplishment. Do most of their accomplishments happen in the workplace, or from their life experiences? Do they value teamwork, achieving a desired end result, or monetary success?
12. Explain me how do you utilize communication skills?
Someone in an executive position must be able to communicate with direct reports, their coworkers, and myself. I have to know that their communication style will be effective in my company.
13. Explain me where do you see yourself in five years?
It's important to understand whether the candidate's career path is aligned with the position to which they are applying. Bringing on a candidate who's just looking for a “here and now” type of position won't do you any favors in terms of a long-term hire. Watch out for cookie cutter answers that end up sounding more like wishful thinking than actual long-term plans.
14. Suppose if you could only pick one, what stock would you buy and why?
This is an industry-specific question that will give you a better sense how connected your candidate is to industry news. Are they a risk-taker, or do they play it safe? It also will indicate how well they follow the markets and economy, a necessity for roles both on Wall Street and beyond it.
15. Tell me what does it mean to be CFO at this company?
At this level, it is assumed you have the skills. The interview is about your style and approach. Envision your style as a CFO, how do you lead? What perspective do you take? Formulate your talking points as if you are the job.
16. Do you know why do we have so many reports?
In one example, a financial department distributed more than 100 periodic reports. Many of the people who had originally asked for these reports had moved on years before, and the accounting team had no idea who was reading them or whether they were still valuable. After th team moved the reports online, to be accessed by staff in a self-serve manner, it became clear which reports were being used and which were no longer valuable.
17. Explain me Cash System of Accounting?
Cash System of Accounting: This system records only cash receipts and payments. This system assumes that there are no credit transactions. In this system of accounting, expenses are considered only when they are paid and incomes are considered when they are actually received. This system is used by the organizations which are established for non profit purpose. But this system is considered to be defective in nature as it does not show the actual profits earned and the current state of affairs of the organization.
18. Do you know what is Better Control?
As the owner is the single person so he has full control over his business. His total authority over his business gives him the power to plan, organize, co-ordinate the various activities. The sizes of such firm are generally small which also makes it better to control.
According to this concept, an asset is recorded at the cost at which it is acquired instead of taking current market prices of various assets.
20. Explain me check Dual Aspect Concept?
According to this concept, every transaction has two affects. This basic relationship between assets and liabilities which means that the assets are equal to the liabilities remains the same.
21. Tell me the rationale behind each of your career moves?
I ask job candidates to explain each of their career choices following their college graduation. The answer can help me decide how they use strategy to make big decisions when they have an end goal in mind.
22. Explain me what key strategic initiatives have you led in your current or a previous position?
The candidate's answer to this question will reveal whether he or she has a strategic perspective on problem-solving and his or her ability to then implement initiatives to achieve strategic goals.
23. Explain me what is Equal Distribution of Wealth?
Proprietary firm is generally a small scale business. Hence there are many opportunities for individuals to start their own business enabling widespread dispersion of economic wealth.
24. Tell me what is Flexibility in Operations?
One man ownership makes it possible to bring flexibility in the operations of the business.
25. Tell me what is profitability Statement?
Profitability Statement also known as Profit and Loss Account. It is a period statement as it refers to a particular period.
