Commonly asked questions during FP&A Interview
The FP&A team plays a major role in an organisation as it provides strategic inputs & forecasts to the top level management which includes the P&L statement, budgeting and financial modelling of projects. This role is one of the most lucrative one for freshly qualified Chartered Accountants.
Based on our extensive research and feedback from professionals in Financial Planning and Analysis, we have compiled the most likely interview questions to be asked by an FP&A hiring Manager.
Technical questions
1. What do you understand by FP&A?
2. What all constitutes Financial Statement?
3. What are the types of budgeting?
4. What is the difference between budgeting and forecasting?
5. What is working capital, and which are the different types of working capital?
6. What is variance analysis?
7. When do you capitalize rather than expense a purchase?
8. What is important to consider when deciding on capital investment?
9. What is EBITDA? What is Included in it? Why it can be considered as a better measure for comparing industry?
10. EBIT Vs EBITDA. Which is the best and difference on analysis?
11. What are the advantages of raising debt over equity?
12. Give one reason why you should analyze long-term liability
13. How can negative working capital help a business?
14. Bottom Up Budgeting Vs Top down Budgeting.
15. What do you understand by MIS Reportings?
16. How much hands on excel?
17. Have you ever used softwares like Tableau, SAP etc.
18. Differenciate between NPV and IRR method.
19. How does an inventory write-down affect the financial statements?
20. What do you understand by ratio analysis?
21. What are free cash flows of firm?
22. What is the difference between budgeting and forecasting?
Bonus Tips
⭐ Plan your answer before speaking. Answer in a structured manner (for eg. try to answer in points)
😀 If you don’t know the answer, then say only the relevant things. Be careful not to make stuff up.
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