1. Explain what is going Concern Concept?
According to this concept, the organization is going to be in existence for an indefinite period of time and is not likely to close down the business in the shorter period of time. This affects the valuation of assets and liabilities.
2. Do you know money Measurement Concept?
According to this concept, only those transactions find place in the accounting records, which can be expressed in terms of money. This is the major drawback of financial accounting and financial statements.
3. Explain me what we do in your own words?
This question easily demonstrates how much research the candidate put into the company prior to the interview. We've noticed that the best hires usually put a lot of research into the company and our goals, so this question gives these candidates a chance to demonstrate their knowledge.
4. Tell me where do you get your finance news?
Do they read the Wall Street Journal every morning? Knowing how a candidate keeps up with industry news can indicate two important things - it shows how much interest they have in the industry as well as how serious they are about working in finance. If they stutter or name a general news website, it may be a sign that they don't live and breathe finance.
5. Tell me what is matching Concept?
According to this concept, while calculating the profits during the accounting period in a correct manner, all the expenses and costs incurred during the period, whether paid or not, should be matched with the income generated during the period.
6. Tell me what is uniform costing?
Uniform costing is the application of the same accounting and costing principles, methods or procedures uniformly by various undertakings in the same industry. It is a particular technique which applies the usual accounting methods like standard costing, marginal costing, and budgetary control.
7. Tell me what is share Capital?
Share Capital is that portion of a company's equity that has been obtained by issuing share to a shareholder. The amount of share capital increases as new shares are sold to public in exchange for cash.
8. Tell me are you willing to work all hours?
Many candidates will answer yes to this, whether they mean it or not. When posing the question, watch their facial expression and listen for any insincerity. Raised eyebrows or widened eyes might mean they don't plan on working longer than the normal nine to five schedule. Their answer and reaction to this question will reveal if they're really willing to make sacrifices to achieve success.
9. Tell me what is cost Accounting?
Cost Accounting is the process of classifying and recording of expenditure incurred during the operations of the organization in a systematic way, in order to ascertain the cost of a cost center with the intention to control the cost.
10. Explain me what is your greatest achievement?
For some finance candidates, the answer may be related to a specific project they undertook or an award they received. If they don't share insightful details about why they feel this was their greatest achievement, be sure to question further. Ask yourself: Is this relevant to the role they're interviewing for?
11. Please explain reserves and Surpluses?
Reserves and Surpluses indicate that portion of the earnings, receipt or other surplus of the company appropriated by the management for a general or specific purpose other than provisions for depreciation or for a known liability. Reserves are classified as: Capital Reserve and Capital Redemption Reserve.
12. What motivates you as Chief Financial Officer?
This is your chance to detect what drives your finance candidates. Dig further to find out whether it's about the money or the finance industry itself. Keep in mind, the desire to make money doesn't necessarily equate to a sufficient drive to succeed or real passion for the business. It often comes with limitations.
13. Tell me what's your management style?
How do you build relationships with people you oversee? Like the previous questions, these will help you figure out if a candidate would work well with his or her subordinates and also offers insight into how relational a candidate it.
14. Tell me how do you keep up on industry news?
I like to know how a potential executive stays in touch with changes in their area of expertise. Are they constantly trying to learn more about the industry, or are they fine with stagnation? How they consume knowledge can also tell a lot about their personality.
15. Do you know convention of Materiality?
This accounting convention proposed that while accounting only those transactions will be considered which have material impact on financial status of the organization and other transactions which have insignificant effect will be ignored.. It gives relative importance to an item or event.
16. Do you know what is Easy Formation?
Proprietary firm is easiest and economic form to create and operate as it can be started by any person without any legal formalities. Also there is no set limit of minimum or maximum number of persons to start the business as it can be started by a single person.
17. Tell me about Deferred Revenue Expenditure?
Deferred Revenue Expenditure is a revenue expenditure which has been incurred during an accounting year but the benefit of which may be extended to a number of years. And these are charged to profit and loss account.
E.g. Development expenditure, Advertisement etc.
18. Tell me do you play sports?
Competitive spirit is crucial for thriving in the majority of finance roles. Playing sports, whether currently or previously, is a great way to determine whether your finance candidates have a competitive nature. Although collegiate athletes may bring a higher level of competition to the table, don't exclude those who may have played club or intramural - competition is still competition.
19. Tell me what is Financial Accounting?
Financial Accounting is the process in which business transactions are recorded systematically in the various books of accounts maintained by the organization in order to prepare financial statements. Theses financial statements are basically of two types: First is Profitability Statement or Profit and Loss Account and second is Balance Sheet.
20. Tell me what is business Entity Concept?
According to this concept, the business has a separate legal identity than the person who owns the business. The accounting process is carried out for the business and not for the person who is carrying out the business. This concept is applicable to both, corporate and non corporate organizations.
21. Tell me what is the scope of uniform costing?
Uniform costing method can be advantageously applied:
☛ In single organisation having number of branches.
☛ In a number of firms in the same industry who are inter connected through trade association.
☛ In industries which are similar such as cotton, gas and electricity.
22. Explain me something I don't already know?
A friend of mine once said the heads at Google often ask a similar question during interviews. It gives the candidate a chance to demonstrate their knowledge and personality, along with one of their unique skills.
23. Why do you want this job as Chief Financial Officer?
Again, companies want to hire people who are passionate about the job, so you should have a great answer about why you want the position. (And if you don't? You probably should apply elsewhere.)
First, identify a couple of key factors that make the role a great fit for you (e.g., “I love customer support because I love the constant human interaction and the satisfaction that comes from helping someone solve a problem”), then share why you love the company (e.g., “I've always been passionate about education, and I think you guys are doing great things, so I want to be a part of it”).
24. Tell me what hurdles or obstacles have you overcome?
Posing this question will help you key into their ability to overcome adversity or challenges throughout their career. If you're particularly interested in a piece of information on their resume, like a layoff, ask them directly about how they overcame that situation.
25. Tell me what other industries are you looking into?
Are your candidates really interested in the finance industry, or are they just exploring their options? Passion for finance is essential to staying afloat in this industry. If they're not engaged with their work from the start, chances are they won't be when it matters.
26. What are your goals as Chief Financial Officer?
This question helps me see what a candidate's motivations are. Since a person's motivation can show whether or not they will fit in well with the company and its goals, I think this question is important. By knowing their motivation from the get-go, it's easier to start a successful relationship.
27. Explain me accounting Period Concept?
According to this concept, the indefinite period of time is divided into shorter time periods, each one being in the form of Accounting period, in order to facilitate the preparation of financial statements on periodical basis. Selection of accounting period depends on characteristics like business organization, statutory requirements etc.
28. Explain me what is Personal attention to customer needs?
Due to the small geographical area it becomes easy for the sole proprietor deal with all its customers personally and knows their needs. Thus it makes easy for him to pay special attention to consumer needs.
29. Do you know what is Convention of Conservation?
This accounting convention is generally expressed as to “anticipate all the future losses and expenses, without considering the future incomes and profits unless they are actually realized.” This concept emphasizes that profits should never be overstated or anticipated. This convention generally applies to the valuation of current assets as they are valued at cost or market price whichever is lower.
30. Tell me what 5 personal characteristics describe you the best?
This question teaches me lot about a person. It shows which personal characteristics the candidate values the most, and which of these attributes they would use to describe themselves. It's a great way to evaluate how they would fit into my company and if they would be happy in this position.
31. What challenges are you looking for in this position as Chief Financial Officer?
A typical interview question to determine what you are looking for your in next job, and whether you would be a good fit for the position being hired for, is “What challenges are you looking for in a position?”
The best way to answer questions about the challenges you are seeking is to discuss how you would like to be able to effectively utilize your skills and experience if you were hired for the job.
You can also mention that you are motivated by challenges, have the ability to effectively meet challenges, and have the flexibility and skills necessary to handle a challenging job.
You can continue by describing specific examples of challenges you have met and goals you have achieved in the past.
32. Please explain how have you simplified a process in the past?
Efficiency and effectiveness are important in every area of your ministry, but especially so in finance and operations. You want a CFO, COO, and/or Executive Pastor who can create organized, streamlined processes for your departments to prevent avoidable problems due to an unnecessarily complicated system.
33. Tell me what would previous coworkers and managers say about you?
Zeroing in on how others perceive your interviewee is essential to finding out whether they're a match for the position and your company as a whole. Jot down what your candidate shares with you and follow-up with their references to see if the descriptions match.
34. Please explain 3 Likes and 3 Dislikes you have at your current job?
This will show you a lot about a person's work personality. If they only have bad things to say about their current job, it could be a red flag. However, if the things they like about their current job are important for your company, they could be a good fit for the position.
35. Please explain of a recent win-win situation you successfully negotiated?
Think carefully before you answer, because the object of this question is to explore whether you are capable of communication information and whether you have the ability to communicate in a way that will gain the acceptance and agreement you are seeking.
