As our students get that awaited call from their dream schools, our goal is to prep them for a killer interview like we did for their killer application. A lot of interviews for MBA Admissions revolve around the subjects of Accounting and Finance which are so fundamental to business that they might be called the languages of business. Â
There is no better way to prepare for an MBA interview than practicing mock interviews. Following are our selected questions on Finance that often appear in the interview. Add these to your list as you practice to make your mocks as similar to the actual interview as you can.   Â
- Why do capital expenditures increase assets (PP&E) while other cash outflows like salary payments, taxes, etc., do not create any asset but instead instantly create an expense on the income statement that reduces equity via retained earnings?
- Walk me through a cash flow statement.
- What is working capital?
- Is it possible for a company to show positive cash flows but be in debt or loss?
- How is it possible for a company to show positive net income but go bankrupt?
- I buy a piece of equipment. Walk me through the impact of this on the 3 financial statements.
- Why are increases in accounts receivable a cash reduction on the cash flow statement?
- How is the income statement linked to the balance sheet?
- What is goodwill?
- What is a deferred tax liability and why might one be created?
Hope the questions have given you an-insight about the types of questions can be asked during an MBA interviewÂ
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