As is the case with many technical questions, this is meant to assess your level of understanding of financial principles and whether or not you can think critically about the concepts in pressure situations.

Sample answer:

“Yes, a company can have negative equity. This can happen when they lose money on their operations but still have obligations to pay creditors and investors.

They could also potentially have negative equity if intangible assets depreciate or if executives borrow more money than they are capable of returning.”

This question will assess your mastery of basic financial concepts. Use it as an opportunity to show that you can speak with clarity about information that can be convoluted to those who have less experience.

Sample answer:

“Net income is a great place to start to link them together. You will find net income at the bottom of the income statement. Looking at the balance sheet, you can see that net income flows into stockholders' equity through retained earnings.

To calculate retained earnings, you take the previous period’s retained earnings and add in net income from the current period while subtracting dividends from the current period.

With the statement of cash flows, net income is the first line and is used to calculate cash flow from operations after you take out non-cash expenses from the income statement. Net income is thus the thread between the three statements.”

This question will allow you to talk about your skill with planning and achieving goals and your commitment to long-term success by taking steps now.

Sample answer:

“I chose my school because I knew that they had good professors in the program I had targeted. I knew that that would be an ideal place for me to set a foundation of knowledge that I could then add to become the kind of professional that I aspire to be one day.”

This is a common kind of behavioral question that you may run into. But, like other behavioral questions, you will do well if you have an example that can really drive home your initial answer.

Sample answer:

“I try to make sure that I have listened and validated the other person's thoughts first. I have found that, even if I think I have the correct answer, I need to ensure that I understand and respect what has been said.

When I was in a previous role, I disagreed with a suggested path by a coworker, and frankly, I knew that my option would be faster and better. However, they were clearly upset about their idea not being given proper recognition.

I decided to step to the side and ask them what their plan was and why they had arrived at that conclusion. I praised the thought they had put into it and highlighted some of the things I thought were especially helpful. I was then able to explain my plan to them from a friendly place.”

A commitment to the organization's success is a crucial attribute that an interviewer will be looking for. If you can point to a time when you took on extra work, it will prove to the interviewer that you possess this attribute.

Sample answer:

“When I was helping with a club in college, we had specific responsibilities that we would accomplish every week. Usually, people would finish their allotment, and we wouldn’t really see much effort beyond that.

We were gearing up for an event, and there happened to be a lot of extra work that needed to be done that was outside of the usual responsibilities. When volunteers were asked to help, no one was willing to extend beyond their usual role.

I volunteered during this time to knock out the extra work and help prepare for the event. As a result, the event went really well, and I was able to feel the fulfillment that comes from going the extra mile and seeing the payoff.”

This question is similar to the previous one, considering solving conflicts generally. Clearly, by including multiple questions like this, you can see that conflict management is something they value greatly at Wells Fargo.

Having a separate example from the initial one you spoke about can show your interviewer that you truly have a pattern of solid conflict resolution.

Sample answer:

“At another company, when I first started, one of the members of another team was really hard on me. We had to work together on things every week, and I couldn’t really understand why they were being difficult.

I decided to ask them to lunch one day, and I tried just to get to know them better. Eventually, I brought the conversation over to work, and they shared with me their frustration with how the training was going on my team.

I empathized and apologized for making their job more difficult than usual. I also asked about what their expectations were and how we could work together better. This improved our relationship significantly, and our work was able to improve too.”

You may be asked questions like this to sample your breadth of knowledge of financial foundations. Take the time to explain your answer thoroughly and clearly so they can see your comprehension.

Sample answer:

“A 10Q report is a filing of the financials and operations over a period of time. It is filed quarterly and includes financial statements, management’s comments, market risk, and analysis of the company's financial condition.

A 10K, on the other hand, is an annual document that the company submits to the SEC. It keeps the shareholders and potential shareholders tuned in to the business activities. It contains business, risk factors, financial data, MD&A, and financial statement sections.

One of the main differences is that a 10Q is less exhaustive. The 10Q is also obviously only filed quarterly, whereas the 10K is annual. The 10K also requires audited financial statements and generally has more information in them. ”

An interviewer, with this question, gives you a great chance to show your resilience and ability to bounce back from hardship as a better person. Be sure to emphasize that you drew lessons from your failure and now apply those lessons constantly.

Sample answer:

“During my undergraduate studies, I failed an exam early on in the semester in one of my major classes. I was surprised at my score because I thought that I had a handle on the material. I used the experience as a message that I needed to work harder as a student.

I devoted more study time to this class and made no exceptions if this time conflicted with other events. I was able to ace the final exams I had in the class and finished with an excellent grade. The professor even singled me out to commend my improvement in the class.

This experience taught me that failure does not define me, nor does it mean the end of the road. It ended up being a refining experience for me. It taught me that my studying skills are exemplary, but that I needed to be humble and ensure that I do my due diligence.”

When you answer this question, try to offer at least two effects, which can show that you can assess a situation and derive more than just the most immediate answer to the question.

Sample answer:

“The income statement will not be affected because net income has not been touched by the future interest that will come from this acquisition.

The balance sheet will be affected in that assets will go up by the amount of PPE and liabilities by half that amount, and stockholders' equity by half that amount.

Finally, the statement of cash flows will see cash flow from investing drop, while cash from the financing will see an increase in the same amount, divided between cash from the issuance of debt and issuance of stock.”

As a question quite similar to the previous one, you can impress your interviewer by dissecting these financial concepts with deftness.

Sample answer:

“Debt and equity are the two ways to raise capital for a company. The cheaper option would be debt because you can deduct this from your taxes.”