Accounting practice
Accounting Interview Questions: Free Graded Practice
Accounting questions open most investment banking interviews, and reading an answer key is not the same as saying the answer yourself. Write your answer below and the grader tells you what an interviewer would have marked down.
- Whether you move through all three statements in the right order
- Whether the cash and balance sheet effects tie out
- Whether the answer is structured enough to follow in an interview
Three statements, walk-throughs, working capital. One graded rep, free, no account needed.
A retailer delivers a product today for $100 and accepts a card payment. The payment processor will remit $100 to the retailer two days later. Ignore fees and product cost. Compare the seller's accounting on the delivery date and settlement date under cash-basis and accrual-basis accounting.
The retailer has completed its performance obligation on the delivery date. The processor's receivable is collectible.
Could you answer this in an interview today?