12 Teamwork Interview Questions and Best Answers
12 Teamwork Interview Questions and Best Answers
During your interview, expect to be asked about your affinity for teamwork and for
examples of when you have worked on teams in the past. These questions may take
the form of behavioral interview questions (regarding how you’ve acted in the
past) or situational interview questions (about how you think you would react in
any given situation).
Here are some of the most commonly-asked job interview questions about
teamwork, along with some sample answers.
What They Want to Know: The employer wants to learn about your teamwork
skills, and whather you enjoyed participating on a team. Share examples, shows
how you've developed skills that will help you succeed on the job.
Example Answer
I’ve participated on sports teams since I played T-ball as a kid: I played softball
and baseball in high school and on an extracurricular team in college, and I play on
a local softball team here. This has really helped me in my professional life, since I
know how to evaluate the individual strengths of my associates, communicate well
with them, and coordinate my efforts to support theirs.
What They Want to Know: Most jobs—at least those in traditional work settings
—require that you be able to communicate and work well with others. Try to
provide a recent example or two of how you’ve contributed to a team at your job.
Example Answer
I prefer to work as a team member, because I believe that the best ideas are
developed in partnership with others. I’m equally comfortable being a team
member and a team lead—a few months ago I was selected to lead our team in a
deadline-critical implementation project. Because of our great teamwork, we were
able to produce our deliverables to the client well before deadline.
Example Answer
I’m a “people person”—I enjoy working with others, and I know how to
communicate well, actively listen to my associates’ opinions, and mediate any
conflicts that arise. As an extrovert, I’m really energized by team dynamics and
excited as I witness the progress we make towards our goals.
What They Want to Know: Different people have different comfort levels with
teamwork; the hiring manager is interested in your personality, your preferred
method of doing your work, and your ability to work without direct supervision.
Example Answer
I can honestly say that I’m comfortable both in working independently as well as
in contributing to teams, and I was lucky enough in my previous job to be able to
do some of both. Especially at the beginning of projects, I appreciate being able to
strategize approaches with team members. Once we have our plan of action
established, though, I enjoy working independently on my assigned tasks.
To answer these questions, describe the specific example you are thinking of (it
helps to think of examples in advance). Then explain the situation, and what you
did to either solve the problem or achieve success. Finally, describe the result.
5. Tell me about a time you worked well as part of a team.
What They Want to Know: Your interviewer will be interested not only in your
response to this question, but also in your tone of voice and positivity. Be prepared
with an upbeat response that demonstrates your appreciation of the value of
teamwork.
Example Answer
What They Want to Know: Some people are natural leaders, while others are
excellent followers. By asking this question, an employer is trying to gauge both
how you would fit into the department’s current team dynamics and to assess
whether you are someone they should flag for eventual leadership responsibilities.
Example Answer
Sample Answer: While I’m happy being a strong team player, I also love being
able sometimes to take the lead and coordinate everyone’s efforts. I have great
organizational, scheduling, and follow-up skills, which is why my supervisor and
other team members often call upon me to take the lead in important projects, such
as our major new mobile technology system acquisition last year.
7. Have you ever had difficulty working with a manager or other team
members?
What They Want to Know: This, like most teamwork questions, addresses your
collegiality and your ability to work on a team and accept supervision. Keep your
answer upbeat, and avoid complaining about previous managers or team members
(you don’t want your interviewer to peg you as a negative whiner).
Example Answer
Not really. Sometimes I’ve had a new manager or team member who struggled
slightly to adjust to our team dynamics and organizational culture, but I’ve found
that talking to them privately and taking advantage of informal opportunities to
connect them with our different team members has always eased those transitions.
More Answers: Have You Ever Had Difficulty Working With a Manager?
8. Tell me about a challenging workplace situation that you had to deal with.
What They Want to Know: Employers want to know how you handle stress in
the workplace, particularly when it involves other team members.
Example Answer
A few months ago we had a situation where one of our older team members
actively criticized a new hire, publicly pointing out her mistakes and just generally
trying to “throw her under the bus.” I spoke to her privately, reminding her of how
challenging we had all found our first few months to be. I also made it clear to the
team that I was mentoring the new hire, which helped both to instill confidence in
her work and to defuse any bad-mouthing.
Example Answer
Most people, even when they love their job, want to be noticed and appreciated for
the work they do. I make it a point to recognize my team members’ contributions
both privately, with informal “thank you” emails, and publicly during weekly staff
meetings.
Example Answer
I’m fortunate in having both the energy and the flexibility to work overtime or on
weekends when staffing issues arise. My last manager really encouraged our team
members to take care of one another, and sometimes that involved covering for
others during unexpected absences. I was always happy to step in to help, knowing
that my associates would do the same for me.
11. How would you handle it if there was a problem with a member of your
team not doing their fair share or work?
Example Answer
I would first talk to them privately in a non-confrontational manner, using “I”
statements to suggest that there might be a problem that we should resolve
together. I’d also do my best to determine the root of the issue and to see if I or
other team members could improve this person’s productivity. This approach
works for me about 95% of the time; in cases where it doesn’t, I ask for a private
consultation with my supervisor to brainstorm other solutions.
12. Would you still be interested in this job if you knew, at some point in the
future, the work environment would change from an individual environment
to a team-based approach?
What They Want to Know: This query assesses whether you have the flexibility
to adapt to change in the workplace. The ideal answer should demonstrate your
capacity to work both independently and as part of a new team.
Example Answer
Absolutely. I’ve had opportunities to work both independently and on teams in the
past, and I feel like I’m effective in both settings, so long as lines of
communication remain open.
Tailor your answers to the job, providing examples that are closely related to the
job you are applying for. Think about past work, internship, or volunteer
experiences that required skills similar to those needed for this job.
Consider also the company and position-level of the job. Large and corporate
companies may value different teamwork traits than small businesses or start-ups.
If you are applying for a management-level position, try to use examples that
display your leadership skills and team-building skills. If you're applying for a
support position, share how you've helped resolve conflicts or kept team members
on deadline.
Prepare for the possibility of a group interview. Some employers conduct group
interviews to see how well candidates respond to questions and challenges within a
stressful group environment. To prepare for this eventuality, check out these group
interview questions, sample answers, and interviewing tips.
Before your interview, think about what you most enjoy about working on a team.
This will help you to be positive when answering questions about teamwork. For
instance, you might appreciate the opportunity to gain insight and feedback from
colleagues.
Of course, you also want to be honest. Sometimes, you have to describe a negative
teamwork experience. For example, an employer might say, “Tell me about a
difficult experience you had when working on a team project.” If you say you have
never had a difficult experience, the employer may think you're not telling the
truth. Plus, that answer doesn't reveal how you are as a team player or how you
handle difficult situations, which is what interviewers really want to know.
Instead of dodging the question, try to focus on how you solved a difficult
problem.
For instance, you might answer, “I have worked on teams where one or two voices
tend to dominate the group, and other peoples’ ideas are not heard. I try to be a
good listener in teams, taking the time to understand everyone’s ideas, and making
sure everyone’s suggestions are discussed.”
For the best results, interviews should be preceded by a Critical Thinking test,
along with other skills and personality tests. Pre-employment testing allows you to
get an in-depth understanding of your candidates’ abilities, identify top talent, and
screen out unsuitable applicants.
To make the interview worthwhile, hiring managers need to ask the right kind of
critical thinking questions to candidates. But these aren’t always immediately
obvious! That’s why we’ve put together 15 of the best critical thinking interview
questions for you to use in your hiring process.
Decision-making
Problem-solving
Information processing
Deductive reasoning
Conflict resolution
The 10 behavioral interview questions below span a range of topics; some may be
more relevant than others, depending on the role you are recruiting for.
Continue reading below to view our sample answers for each question.
Sample answer:
I prefer to make decisions after taking in all of the facts, but I recognize that the
need to act quickly will sometimes take priority. In these situations, I pore over all
of the information available and use my intuition to fill in any gaps. This could be
by drawing parallels to a similar task from the past or predicting future outcomes
to map the best decision in the present.
I experienced this situation in my last job while writing a funding application with
a very quick turnaround. The final section to complete before submission was the
summary, where it was crucial to really sell our organization’s solution in a
compelling and straightforward way.
My manager was unreachable at the time, so I decided to contact the head office to
retrieve the summaries of our previous successful funding applications. Using
these examples, I was able to craft a persuasive summary. A few weeks later, we
were awarded the funding.
This question probes into a candidate’s ability to make decisions under pressure. A
good answer will evidence a clear thought process and measured judgment to
select an appropriate course of action.
Sample answer:
This involved a regimented process of ranking staff across several different criteria
including merit, skills, and tenure. Ultimately, we favored staff with long-term
potential, such as those with in-demand skills and a growth mindset.
The decisions were far from easy, but recognizing that someone had to make the
call, I never shied away from them either. I think the best approach for any difficult
work decision is to be objective, consult data, and consider the long-term impact.
I always try to be receptive to new ideas, recognizing that these drive innovation in
a business.
If I find that something can be improved, I seek solutions and conduct initial
research to ascertain their effectiveness in other business contexts. If I think they
have potential, I test them on a small trial basis before deciding whether to
implement them on a full scale.
This situation played out in my last role, where I was the leader of a small team.
After transitioning to remote work arrangements during the COVID-19 pandemic,
a team member asked if he could rearrange his hours to accommodate certain
family commitments.
Sample answer:
I think it’s great to hear different perspectives in the workplace, provided that they
come from a well-meaning place. Listening to opposing viewpoints helps to refine
my own opinion and can often bring the team to a middle ground from which more
balanced decisions can be made.
A few months ago, a co-worker and I disagreed on how best to deliver a digital
marketing campaign for a client. In short, he wanted to run paid search engine
advertisements while I preferred to create content for the client’s company website.
After listening to his argument, I presented my case to show that content marketing
was likely to yield a higher return on investment by showing case studies from
previous clients in a similar field.
Eventually, we agreed to the content strategy, and allocated only a small slice of
the budget to paid ads. Within a few weeks, the client had doubled the traffic on
their website and was extremely satisfied with our project delivery.
In a fast-paced work environment, employees must act swiftly and decisively. This
question asks the candidate to expand on their decision-making process. Strong
answers will strike a balance between careful consideration and urgency.
Sample answer:
The first step is to assess the immediacy of the deadline; if it’s urgent, I know I
have to make a decision ASAP. In this situation, I’ll quickly weigh up the pros and
cons of each option and select the course of action that best aligns with the
business goals.
Having a strong background understanding of the area and a clear selection process
allowed me to make the right call 99% of the time.
6. Have you ever anticipated a problem before it arose? How did you deal
with it?
This question separates the proactive thinkers from the passive ones. Candidates
able to answer this question will be demonstrating their ability to plan ahead and
anticipate risks—an invaluable skill in any organization.
Sample answer:
Our proactive approach resonated with customers, who appreciated the new
measures while other stores in the local area remained slow to adapt. Our trading
volume actually rose by around 25% compared to pre-pandemic levels. Staff also
reported feeling safer in our monthly surveys.
It’s important to try and pre-empt risks in any business. To do this, I always
consider the worst-case scenario that could affect the business and learn from
competitors’ failures.
This question gauges a candidate’s propensity to voice criticism, and whether they
choose to express it in a constructive or negative way. There’s no real right or
wrong answer here; candidates simply need to explain their suggestions
thoughtfully and thoroughly.
Sample answer:
Workers should know when to seek help from others while working on a project.
A good answer here is all about balance. Candidates shouldn’t burden co-workers
with work they could do themselves, nor should they be too stubborn to move
things forward with some outside opinion or help.
Sample answer:
When I’ve been given a task to complete independently, I try to avoid asking my
co-workers for help as I know everyone is busy with their own work. Sometimes,
though, it can be really useful to get a fresh pair of eyes to look over things when
I’ve hit a wall in a project. Help is a two-way street, so I always try to make time to
assist co-workers when I am asked.
About a year ago in my sales position, I was tasked with integrating invoices into a
spreadsheet containing order history for different clients. Software isn’t my strong
point, so I sought help from a member of the development team—someone with
whom I had built a good rapport previously.
I knew this was something that would probably only take him 15 minutes, so I
didn’t feel like too much of a burden when I asked for help. He duly completed the
task, and the project could move forward. I had previously helped him before, and
I also offered my support for anything he needed in the future.
Conflict resolution is a skill that can be hard to come by for hiring managers. In
work environments with people of different opinions and values, it’s important to
have someone who can defuse conflict situations with a proactive, patient, and
impartial approach.
Sample answer:
When managed properly, I think that workplace disagreements can be healthy and
help to promote a diversity of opinion. However, when they become personal, they
serve no purpose and must be resolved immediately with fairness and good
judgment.
10. What is the most innovative work-related idea you have come up with?
How did it benefit the organization?
This question asks candidates to consider a time when they have thought outside
the box to deliver a new solution in a previous job. Having proactive problem-
solvers in your organization will help it stay ahead of the curve.
Sample answer:
The team supported the idea, but management was hesitant at first. After
presenting my argument, they agreed to trial the breaks for two weeks. By the
second week, the results were clear: employees were working more effectively and
they were more satisfied at work. Soon after, the new break system was
implemented on a scale across the company.
The beauty of situational questions is that they allow interviewers to replicate role-
specific scenarios where candidates will need to exercise critical thinking. If you
were hiring a grant reviewer, for example, you could ask candidates how they
would choose between two evenly-matched proposals.
Our five chosen situational interview questions assess a range of different critical
thinking scenarios; below, you’ll find our sample answers. If possible, adapt the
situations to the specific role that you’re hiring for.
1. You notice your manager has made a significant mistake in a report. How do
you handle the situation?
2. How would you deal with a situation where a weak link is affecting the
quality of performance?
3. If you are given ten projects but only have time to complete three, how do
you decide which three to work on?
4. You are leading a time-sensitive project where team members are unable to
agree on an appropriate strategy. How do you proceed?
5. You’ve discovered a new approach that could improve performance while
saving resources, but it’s unpopular among your coworkers. How do you
present your case to your manager?
1. You notice your manager has made a significant mistake in a report. How
do you handle the situation?
In virtually all roles, employees will have someone above them in the chain of
command. Candidates shouldn’t be afraid to confront authority figures if they
notice something’s wrong, but they must go about this in a constructive and
professional manner.
Sample answer:
I’m sure if I went about this politely, the manager would appreciate my good
intentions and the issue could be resolved quickly and cordially. While the
situation may be slightly uncomfortable, ensuring the best outcome for the
business should always take priority.
I’ve found myself in this position in a previous job while reviewing a document
from my manager before it was due to be published. It included a few incorrect
statistics and formatting errors which I took the liberty to amend. When I raised
this with him in private, he thanked me for my attentiveness and any ill feeling was
avoided.
2. How would you deal with a situation where a weak link in the team is
affecting the quality of performance?
This question assesses the candidate’s ability not only to identify workplace
problems, but also their willingness to tackle them proactively. Strong candidates
won’t shy away from having uncomfortable conversations, but will also be
respectful and keep things confidential.
Sample answer:
If I noticed that a particular team member was disrupting the delivery of a project,
I would look to offer solutions rather than point fingers. The first step would be to
identify the cause of the team member’s poor performance.
If it was down to a lack of skills, I would suggest to the team leader in private that
they receive appropriate training to help get them up to speed on the project.
Alternatively, they could be reassigned to another area that they have greater
expertise in.
If their performance was due to poor motivation, I would suggest that the
employee be given personalized performance goals, assistance, and feedback.
Encouragement, rather than criticism, should help the employee feel more
motivated.
3. If you are given ten projects but only have time to complete three, how do
you decide which three to work on?
Workers will often need to prioritize tasks based on their urgency and importance.
In this situation, critical evaluation is necessary to distinguish the important from
the less-important tasks using specific measures like time, effort, and value.
Sample answer:
If I had to manage multiple time-sensitive tasks, I’d first list them all together in a
single document and order them based on the urgency of the deadlines. Second, I
would flag any tasks which could feasibly be delegated to co-workers for
completion.
From the remaining tasks, I would identify those which are both urgent and
important. The next step would be to order these based on their value by
considering which tasks have the most serious consequences for failing to
complete them, and also which tasks have the highest ROI.
For example, missing a deadline for a brand-new client could be more damaging
than missing one for a loyal client of many years, and whose project is less urgent.
Using this process, I’d select the three tasks which:
4. You are leading a time-sensitive project where team members are unable to
agree on an appropriate strategy. How do you proceed?
At a certain point in the project planning stage, it’s necessary to make the call to
move things forward. Strong candidates will be able to synthesize the key points of
the different strategies available to help come to a decision that is supported by the
majority.
Sample answer:
In this situation, I would first remind team members of the urgency of the task at
hand and the need to move quickly. Next, I would write up a simple,
straightforward list of the pros and cons of each available strategy, drawing
attention to any potential risks that may be encountered.
I would then give team members a few minutes to consider each option and voice
any additional queries they may have. If a clear consensus still cannot be reached
at this point, I would take a vote to decide the strategy to move forward with.
I recognize that it’s not always possible to reach a clear agreement. But by
stripping the situation back to the simple facts, at least everyone can make an
informed and objective decision in a time-sensitive manner.
5. You discover a new approach that could improve performance while saving
resources, but it’s unpopular among your co-workers. How would you present
your case to your manager?
Innovative thinkers can be great assets to your organization, but they’re of little
value if they fail to defend their ideas when faced with disapproval. While other
team members’ views should be respected, the strong candidate will be able to
argue their case persuasively.
Sample answer:
Before putting the idea forward to the manager, I would find out more about the
reasoning behind the team’s resistance. It could be that they don’t want to go
through a new learning curve or are unconvinced by its benefits.
The support sessions would aim to overcome the team’s hesitation by showing
how the new approach would benefit them in the long run. I’d also encourage
anonymous feedback so that the new approach can be improved. Ultimately, I’d try
to reach a place of mutual understanding with positive outcomes for everyone
involved.
Tip: Employers typically ask this question to understand what your problem-
solving process looks like. They are looking for you to describe a logical problem-
solving process that includes gathering information, analyzing the information and
making decisions based on what you've found.
Example: “When I'm faced with a problem, I typically start by doing research or
looking at examples of how this problem has been solved by others. From that
research, I'm able to decide which approach to solving the problem works best for
me and the organization. Then, I decide what actions need to be taken to solve the
problem, and I start putting the process into motion while communicating with my
managers and co-workers.”
Tip: For this question, you'll want to choose a specific example from your work
history to demonstrate your ability to be flexible while solving problems. To stay
focused, you can use the STAR method
to answer this question. Describe the situation, your role in the challenge, the
action that you took to overcome this challenge and the final result.
Example: “When I was working as a retail manager, I had a customer who came in
to pick up a dress that she had ordered online. But when I went to collect her order,
I found that the dress had accidentally been put back on the sales floor and
purchased by another customer. I called another of our store locations and asked
them to hold the same dress in the customer's size. I had it shipped to her home
within 2 days for free. A week later, I found out that the customer had called our
corporate headquarters to mention how much she appreciated the gesture.”
Related: Top Tips for Using the STAR Method
Taylor explains how to stand out when answering behavioral interview questions
using the STAR Method, a strategic storytelling tool.
3. How do you weigh the pros and cons before making a decision?
Tip: This question helps the employer better understand your problem-solving
process. They want to make sure that you are making intelligent decisions that are
based on the information you have available to you.
Example: “When I have a list of pros and cons to help me make a decision, I start
by considering whether the cons will hinder me from achieving my desired
outcome or cause unnecessary burden somewhere else. If so, then the approach
probably won't be effective. If not, then I will consider if the pros outweigh the
cons in terms of a positive outcome. If the pros outweigh the cons, then it is worth
pursuing and dealing with any negative effects as they come.”
Tip: There are unpleasant or high-pressure situations present in any job. Employers
want to know how you will handle yourself in these situations while working to
address the issues causing these events. Though this is a generalized question, it
may help to think about a specific situation where you encountered a dissatisfied
customer and were able to address their concerns.
5. What metrics do you track on a regular basis? How do you use the
information to adjust your approach?
Tip: This is a question you may encounter if you are interviewing for a position
that requires you to review analytics in order to make decisions. To avoid losing
focus, choose two or three metrics that you use on a regular basis and consider how
these metrics impact your decisions.
Example: “As an email marketing manager, I often use open rates and conversion
rates to determine the success of my campaigns. If email open rates are low, I will
revisit the content to make sure it's relevant to the reader or try adjusting the
subject line to make it more interesting. If conversion rates are low, I will take
another look at the email copy to make sure it is clear and compelling and revisit
the offer to make sure it is relevant and valuable to the target audience.”
6. Tell me about a time when you had to change your planned course of action
at the last moment. How did you handle this situation?
Tip: This interview question allows you to show how you handle stressful
situations while demonstrating your flexibility and ability to think quickly. In your
response, you want to use the STAR method again by explaining the situation,
describing your involvement, telling them about the action you took and explaining
what the results were.
Example: “When I was working as a catering manager, we were informed the night
before an event that the ingredients we needed to prepare the appetizers were not
going to be delivered on time and would arrive after we needed them. I got a list of
the ingredients needed and made a stop at the store on my way to the event. My
team and I were able to make the appetizers just in time for the party. All of the
guests enjoyed the appetizers so much that the party planner specifically mentioned
them in her online review.”
7. Your manager wants to buy new software to help increase the team's
productivity, and she asks for your recommendation. How do you respond?
Example: “First, I would ask my manager what features are most important and
what the company budget is. With this information, I would start to research
productivity software options that meet the minimum requirements within budget.
In addition to features and price, I would consider the software's ability to meet
future needs as well as customer reviews. Once I had a list of 5 or so options, I
would narrow it down to the top three with a top recommendation. I would present
my recommendation to my manager with a few points about why this option was
best.”
8. Describe a time when you had to solve a problem, but didn't have all the
necessary information about it beforehand. What did you do?
Tip: Having to solve a problem without having all the necessary information is a
common scenario you will experience in any business setting. Employers want to
know how you deal with this inconvenience while still logically and effectively
resolving the issue. Choose a situation you've experienced that highlights your
strengths and ability to work independently.
Example: “When I was working as an office manager, the CEO of our company
told me that employee productivity was down and that I needed to come up with a
solution. Since there are many reasons why productivity might decline, I decided
to ask the team members by conducting interviews and sending out short surveys.
After gathering this information, I was able to see that employees didn't have a way
to keep track of and organize tasks. I recommended that the CEO implement a new
project management system, and productivity increased by 10% after
implementation.”
While the problem-solving interview questions that you are asked during your
interview will vary from job to job, the samples and tips above will help you be
more prepared for your interview. Try answering a few of them on paper or
practice answering with a friend before you go to your interview. If the interviewer
asks an analytical question that you are not prepared for, take some time to think
about your response before you proceed.
Read More: Everything You Need To Know About Job Interview Etiquette
Jenn, an Indeed Career Coach, breaks down the intentions behind employer's
questions and shares strategies for crafting strong responses.
Ans: A company can show positive net income while facing bankruptcy by deteriorating
working capital (by enhancing accounts receivable and reducing accounts payable) and financial
tactics.
3. Why do Capital Expenditures Increase Assets When other Cash Outflows don’t and
Instead Create Expenses?
Ans: Capital expenditures are capitalized because they give benefits to the firm for a substantial
amount of time. For example, a new branch would make a lot of money for the firm for a long
while but an employee’s work will only benefit until the time of paying the wages and that’s why
they create an expense. This is the primary difference between an asset and an expense.
Then, you need to add cash flows from investments, operations, and financing to get the total
change in cash. Finally, the cash balance at the beginning of the period and the change in cash
lets you arrive at the cash balance of the period’s end. This is essentially what a cash flow
statement looks like.
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5. Can a Company Show Positive Cash Flows While Facing Financial Problems?
Ans: Yes, a company can show positive cash flows even while facing financial trouble through
impractical enhancements in working capital (delaying payables and selling inventory) or by not
letting revenue go forward in the pipeline.
Ans: In simple words, preference capital refers to the amount raised by issuing preference
shares. This is a hybrid method of financing the firm as it offers some features of debentures and
some features of equity. It is the capital that has preference over equity capital at the time of
dividend payment.
With hedging, if the asset in question causes you a loss, the opposite position in the related asset
will make up for this loss. This is why a hedger is quite different from speculators as a hedger
doesn’t focus on maximizing profits but on minimizing risks.
Ans: RAROC stands for Risk-Adjusted Return On Capital and is a risk-based profitability
measurement framework we use to analyze risk-adjusted financial performance. It gives a proper
view of profitability across organizations. It is one of the best tools to measure a bank’s
profitability. By combining it with the risk exposure and the ascertained economic capital, you
can calculate the expected returns more accurately with RAROC.
Ans: Fair value refers to the unbiased and rational estimate of the potential market price of an
asset, good, or service. The fair value of an asset is the amount at which you can buy or sell the
asset in a current transaction between willing parties other than a liquidation. Similarly, the fair
value of liability refers to the amount at which you can incur or settle in a current transaction
between two willing parties other than a liquidation.
Ans: Secondary market is where people trade securities that have been offered to the public in
the primary market beforehand and are listed on the stock exchange. The secondary market is
also known as the aftermarket and some of the prominent examples of them include NASDAQ,
Bombay Stock Exchange (BSE), and New York Stock Exchange (NYSE).
Ans: Costing is the process of identifying a product’s or service’s cost while cost accounting is
the mechanism of analyzing a business’s expenditure. Cost accounting is a branch of accounting
that determines the expenses incurred from a venture through examining, analyzing, and
predicting the cost data.
On the other hand, costing is the process of asserting the costs and prices of products. Costing is
a technique while cost accounting is a branch of accountancy. The former has very little impact
on a business’s decision-making while the latter is crucial for informed decision-making.
5. What do you Mean by Cost Accountancy? Do you Know the Objectives of Cost
Accountancy?
Ans: Cost accountancy is the combination of costing and cost accounting where you classify,
record, and allocate expenditure to determine a product’s or service’s cost. It records and
analyses the related data and presents them appropriately to help in guiding the decision-making
process.
To get correct analysis of cost (by process and different elements of cost).
To ascertain the cost per unit of various products.
To ascertain the profitability of every product.
To advise the management on how they can maximize their profits.
To disclose the sources of wastage (time, resources, or money).
So far these are the questions you must include in your finance interview question and answer
pdf. However, don’t forget to read your curated MBA finance interview question and answer pdf
to conduct last minute preparations for interview sessions.
Ans: The entries we pass at the end of every accounting period to the nominal and related
accounts so we can indicate the correct profit and loss in the profits and loss accounts and keep
the balance sheet accurate, are called adjustment entries.
It is crucial to passing adjustment before we prepare the final financial statements as in their
absence the final statements would reflect incorrect information resulting in error and confusion.
Moreover, the balance sheet wouldn’t show the accurate position of the business if we don’t pass
the adjustment entries.
Ans: Put option is a financial market derivative instrument that allows the holder to sell an asset
at a specific price by a specific date to the writer of the put. The purchase of a put option sends a
negative message about the future of the stock in question.
Ans: Deferred tax liability is the amount the company hasn’t paid yet to the tax department but is
expecting to pay it in the future. It happens when a company’s tax expenses are lesser than the
amount they reflect in their tax reports or financial statement.
4. What is Goodwill?
Ans: Goodwill is an asset that contains the excess of the purchase price over the fair market
value of an acquired business.
Ans: The journal is the book of prime entry and all the transactions are recorded in it to show
which account got debited and which one got credited. However, the ledger is the book for
keeping separate accounts. You’d have to classify the recorded transactions in a journal and add
them to the dedicated accounts present in the ledger. The ledger is also known as the book of
final entry.
These are major concept-based finance technical questions, so you can easily find answers to
these in your books. This will not only help improve your concepts but will also make your
finance question and answer pdf unpredictable. So, brainstorm these finance technical questions
and higher your chances of cracking your dream interview.
On that note, there will be some hints to guide and direct you toward the answers.
1. Explain, that capital expenditures help increase assets, yet other cash flows like taxes and
paying salary do not do so but create an instant expense on the income statement, which
then negatively impacts equity through retained earnings.
Hint: Go through the definition of capital expenditure and determine its main variables.
2. Given an example of a situation where a company is showing positive cash flow but is in
grave trouble.
Hint: Look into the concepts of unsustainable improvements in working capital and pipeline
getting slow.
3. Is it possible for a company to show positive net income but still go bankrupt? Give
justification for your answer.
Hint: look for financial shenanigans and what happens when accounts receivables increase and
payables get reduced.
4. Explain why the increases in accounts are receivable and a cash reduction on a cash flow
statement.
Hint: Remember how a cash flow statement begins and what measures are taken to adjust the net
income reflected.
5. Tell the relationship between the income statement and the balance sheet.
Hint: Think about net income and retained earnings and their relationship.
Hint: Look into the definition of tax liability, GAAP, and IRS. After that, revise different
relations between GAAP and IRS and see what happens when the difference between the two
increases.
8. How will the three financial statements be impacted when I buy anything?
Hint: Determine whether or not the thing is a depreciating asset. The answer will majorly
depend on that. Then understand the three financial elements.
Throughout the course, you’ll get plenty of opportunities to learn from industry experts and
engage in peer-to-peer networking which makes the learning process much more exciting and
fun.
Conclusion
While it’s great to equip yourself with all the theoretical and practical knowledge before
appearing for an interview, make sure that you focus on soft skills along with the technical topics
we have covered in these questions. Recruiters are always on the lookout for candidates that
possess strong technical and soft skills.
With upGrad, aspirants can choose to pursue MBA in Finance specialization from Liverpool
Business School or MBA in Digital Finance and Banking from O.P. Jindal Global University.
Ranked among the top B-schools of the UK, Liverpool Business School provides a 20-month
MBA Finance course online, including a one-week immersion program at the university campus.
The course comprises simulations and case studies from Harvard Business Publishing. During
this program, the students get a chance to be mentored one-on-one by the industry leaders.