Accounting

The three financial statements and how they connect are by far the most tested area. Interviewers expect you to walk through the income statement, balance sheet, and cash flow statement, then explain how a change in one flows through the others.

You need to know them cold. Be prepared to build a simple three-statement model from scratch, explain every major line item, and trace how transactions like depreciation, debt issuance, or inventory changes flow across all three statements.

Yes. EBITDA is central to valuation and credit analysis. You should know how to calculate it from both the income statement and cash flow statement, understand its limitations, and explain why bankers prefer it over net income for comparing companies.

Start with the income statement, then learn the balance sheet and cash flow statement. Focus on understanding the linkages between statements rather than memorizing definitions. Practice walking through transactions and their multi-statement impact.

Deferred tax questions appear at top banks and are considered a differentiator. Understand the difference between book and tax treatment, how deferred tax assets and liabilities arise, and their balance sheet and cash flow implications.

Walk me through how the three financial statements are linked. This single question tests your understanding of accrual accounting, cash versus non-cash items, and the fundamental architecture of financial reporting. Have a crisp 60-second answer ready.

Yes. Interviewers frequently ask how changes in working capital affect cash flow, what drives increases or decreases in accounts receivable and inventory, and why working capital matters for valuation and deal modeling.