I have a tech screen (30m phone call) on Thursday AM and I have been told by multiple people at the firm that while this is a VERY classic IB interview, there will be a heavy emphasis on actual accounting adjustments, i.e., "walk me through how..", vs 30 minutes of definitions, walk me through a valuation, which cost of x is higher, etc. They said the questions won't be hard, but they want to see that I know the 3 statements in and out vs just knowing the most classic memorizable IB answers.
So, can you guys help me come up with 10-15 "classic" accounting adjustment questions? Literally all I can think of is "how does $10 in depreciation flow through the 3 statements?". I'm just confused because they said it will be simple, but beyond that I'm not sure what they could ask that doesn't involve DTA/DTL or some other random shit.
I got like a crap ton. the most infamous one I received in so many interviews: Walk me through the changes in the three statements if there’s a $10 depreciation expense. pm me and I can send the rest of my list.
Really should've clarified, meant to say pm email.
Why would you not just post it here for everyone to see?
Here’s a tough example
How does a $100 asset acquisition flow through the three statements...
1) at time zero (immediately after acquisition) assuming you pay with 50% Debt and 50% cas
2) After one year assuming the asset generates $20 in Revenue per year and it has a 10 year life with straight line depreciation. Debt incurred by the asset acquisitionhas a 5% interest rate (no amortization)
3) After it’s sold at the beginning of year 2 for $70
If you can answer that correctly, you should be good on the 3 statement questions