Top 7 Financial Reporting And Analysis Interview Questions You Must Prepare 19.May.2024

There are four main financial statements 

  1. balance sheets,
  2. income statements,
  3. cash flow statements,
  4. statements of shareholders’ equity.

The balance sheet summarises the financial position of a company for a specific point in time. The P&L (profit and loss) statement shows revenues and expenses during a set period of time.

  • The analysis of expenses and revenue which is predicted to be produced or incurred in future is called quarterly forecasting.
  • An expense model tells what expense categories are allowed on a particular type of work order.

The journal is a book where all the financial tractions are recorded for the first time. The ledger is one which has particular accounts taken from the original journal.

Yes. There are two examples :

  1. A company that is selling off inventory but delaying payables will show positive cash flow for a while even though it is in trouble.
  2. A company has strong revenues for the period but future forecasts show that revenues will decline.

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows. NPV is used in capital budgeting to analyse the profitability of a projected investment or project.

You need to be very careful in wering this question. As a financial analyst, following the stock market proves to be beneficial. Also, always be up-to-date with the stocks.