Chief Financial Officer

This accounting convention proposes that the same accounting principles, procedures and policies should be used consistently on a period to period basis for preparing financial statements to facilitate comparison of financial statements on period to period basis. If any changes are made in the accounting procedures or policies, then it should be disclosed explicitly while preparing the financial statements.

☛ What would you do if revenue forecasts for next year decreased?

☛ If you had to decide whether a possible investment is profitable, how would you do it?

In the finance industry financial professionals often have to persuade influential people to count on their expertise, follow their advice, and use their services.

Your interviewer will want to make sure you are able to determine the best approach to achieve what you want by influencing clients.

In this system, expenses and incomes are considered during that period to which they pertain. This system of accounting is considered to be ideal but it may result into unrealized profits which might reflect in the books of the accounts on which the organization have to pay taxes too. All the company forms of organization are legally required to follow Mercantile or Accrual System of Accounting.

Choose one of your most notable achievements and why you felt it was important.

Keep it relevant to the finance position you are applying for. Discuss the challenges you faced and tell the interviewer how your achievement can help you succeed in your new position.

A position statement as it refers to a particular date. It is also referred to as Statement of Sources and Application of Funds. It informs about the various sources used by the organization which are technically known as liabilities to raise the funds which are referred as assets.

Being the only owner of the business the sole trader takes all the decisions himself. He evaluates all the opportunities available and finds the solution to problems which makes decision making quick.

☛ Preparation of financial plan at the time of company promotion

☛ Financial adjustments in times of liquidity crisis

☛ Valuation of the firm at the time of acquisition and merger etc.

Capital Expenditure is an amount incurred for acquiring the long term assets such as land, building, equipments which are continually used for the purpose of earning revenue. These are not meant for sale. These costs are recorded in accounts namely Plant, Property, Equipment. Benefits from such expenditure are spread over several accounting years.

One man ownership makes it possible to bring flexibility in the operations of the business.

Proprietary firm is generally a small scale business. Hence there are many opportunities for individuals to start their own business enabling widespread dispersion of economic wealth.

I ask job candidates to explain each of their career choices following their college graduation. The answer can help me decide how they use strategy to make big decisions when they have an end goal in mind.

According to this concept, an asset is recorded at the cost at which it is acquired instead of taking current market prices of various assets.

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.

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.

According to this concept, every transaction has two affects. This basic relationship between assets and liabilities which means that the assets are equal to the liabilities remains the same.

Cash System of Accounting: This system records only cash receipts and payments. This system assumes that there are no credit transactions. In this system of accounting, expenses are considered only when they are paid and incomes are considered when they are actually received. This system is used by the organizations which are established for non profit purpose. But this system is considered to be defective in nature as it does not show the actual profits earned and the current state of affairs of the organization.

In one example, a financial department distributed more than 100 periodic reports. Many of the people who had originally asked for these reports had moved on years before, and the accounting team had no idea who was reading them or whether they were still valuable. After th team moved the reports online, to be accessed by staff in a self-serve manner, it became clear which reports were being used and which were no longer valuable.

As the owner is the single person so he has full control over his business. His total authority over his business gives him the power to plan, organize, co-ordinate the various activities. The sizes of such firm are generally small which also makes it better to control.

Some numbers in the financial statements are facts. Others are opinions. Let’s figure out which are which.

At this level, it is assumed you have the skills. The interview is about your style and approach. Envision your style as a CFO, how do you lead? What perspective do you take? Formulate your talking points as if you are the job.