Frequently Asked MBA Finance Interview Questions ?

If you are preparing for an MBA in Finance interview, especially from a commerce background, it is important to be well-versed with basic finance concepts and commonly asked questions. Interviewers test not only your knowledge but also your clarity of thought and awareness of current financial trends.

This blog covers the most commonly asked MBA Finance interview questions along with simple explanations to help you prepare confidently.

1. What is MBA Finance Terminology?

MBA Finance terminology refers to the set of technical words and concepts used in financial management, accounting, investment, banking, and corporate finance.
Some common finance terms include:

• Assets and Liabilities
• Equity and Debt
• Revenue and Profit
• EPS (Earnings Per Share)
• Bonds and Securities
• Risk and Return

Understanding these terms helps you communicate professionally during interviews.

2. What Are Your Strength Areas in Finance?

Your strength areas in finance can include:

• Financial Analysis
• Accounting and Auditing
• Investment Management
• Budgeting and Forecasting
• Corporate Finance
• Taxation

You should answer this based on your academic background and internship or project experience.

3. What is Maximum Likelihood Estimation (MLE)?

Maximum Likelihood Estimation is a statistical method used to estimate the parameters of a model.
It finds the values that make the observed data most likely to occur.

In finance, MLE is used in:

• Risk modeling
• Stock price prediction
• Financial forecasting

4. What is Consolidation?

Consolidation is the process of combining financial statements of a parent company and its subsidiaries into one single financial statement.

It provides a complete picture of:

• Total assets
• Total liabilities
• Overall profits and losses

5. What Are Fictitious Assets?

Fictitious assets are expenses that are not written off completely in one accounting period and are carried forward for future periods.

Examples:

• Preliminary expenses
• Advertising expenses
• Discount on issue of shares

They do not have real physical value but appear in the balance sheet.

6. What is a Trial Balance?

A Trial Balance is a statement that lists all ledger balances (debit and credit) to check the accuracy of accounting records.

Its main purposes are:

• To ensure total debits equal total credits
• To detect accounting errors
• To help in preparing financial statements

7. What Do You Understand by the Term Finance?

Finance is the management of money and funds. It involves:

• Planning
• Raising capital
• Investing funds
• Managing risk

Finance helps organizations achieve their business goals efficiently.

8. What is Accumulated Appreciation?

Accumulated appreciation refers to the increase in value of assets over time, such as property or investments.

Example:
If land purchased for ₹10 lakhs is now worth ₹15 lakhs, the appreciation of ₹5 lakhs is accumulated appreciation.

9. How Do You Handle Challenges?

A good answer includes:

• Staying calm under pressure
• Analyzing the problem
• Finding logical solutions
• Learning from mistakes

This shows maturity and problem-solving ability.

10. What Does Success and Failure Mean to You?

Success means achieving goals through consistent effort and learning.
Failure is an opportunity to improve and gain experience.

Interviewers look for a positive and balanced mindset.

11. What is a Security or Bond? Explain Types of Bonds.

A bond is a fixed-income financial instrument where an investor lends money to an issuer (government or company) for a fixed period at a fixed interest rate.

Types of bonds:

• Government Bonds
• Corporate Bonds
• Zero Coupon Bonds
• Convertible Bonds
• Municipal Bonds

12. Explain Types of EPS (Earnings Per Share)

EPS shows the profitability of a company per share.

Types of EPS:

• Basic EPS – Net profit divided by total shares
• Diluted EPS – EPS after considering convertible securities
• Adjusted EPS – EPS after removing extraordinary items

13. How to Calculate TPS (Total Productivity Score / Throughput Per Share)?

TPS is calculated by dividing total output or earnings by total units or shares.
It helps measure efficiency and productivity in financial performance.

Important Interview Preparation Tips

• Read Financial Times or business newspapers daily
• Stay updated with government relief packages and economic policies
• Prepare answers for common interview questions
• Practice mock interviews
• Be confident and clear in your responses

“It is always better to be over-prepared than under-prepared.”

Conclusion

MBA Finance interviews test both your technical knowledge and personality. By preparing these commonly asked questions and staying updated with financial news, you can significantly improve your chances of success.