Cisco Financial Analyst Interview Questions and Answers

Accounting questions related to derrral concept and around cash flows and working capital

Q1. Difference between provision and accrual
Ans. 
Provision is an estimated liability while accrual is a recognized expense.
• Provision is an estimated liability that is recognized when there is uncertainty about the amount or timing of a future expense.

• Accrual is a recognized expense that is recorded when it is incurred, regardless of when the payment is made.

• Provisions are made for potential future expenses, such as legal claims or warranty obligations.

• Accruals are ma...read more
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Q2. What is a lease(IFRS 16)
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A lease is a contract between a lessor and a lessee, where the lessee pays the lessor for the use of an asset.
• IFRS 16 is a new accounting standard that requires companies to recognize most leases on their balance sheets

• Leases can be classified as finance leases or operating leases

• Finance leases are treated like asset purchases and the lessee records the leased asset as an asset and the lease obligation as a liability

• Op...read more
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Q3. Difference between deferred revenue and unearned income
Ans. 
Deferred revenue and unearned income are terms used interchangeably to describe the same concept.
• Deferred revenue and unearned income refer to revenue received in advance for goods or services that have not yet been delivered or provided.

• Both terms represent a liability on the company's balance sheet until the revenue is recognized.

• Deferred revenue is commonly used in the software industry, where customers pay upfront ...read more
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Q1. Questions around deferred revenue
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Q2. How to forecast revenue of a new product?
Ans. 
Forecasting revenue of a new product requires market research, analysis of competition, and estimation of demand.
• Conduct market research to identify potential customers and their needs

• Analyze competition to understand their pricing, marketing, and sales strategies

• Estimate demand based on market size, target audience, and pricing

• Consider external factors such as economic conditions and industry trends

• Use financial model...read more
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Related to Finance test, accounting, Scenario type questions

Q1. Technical round is more likely experience, job profile, and finance related questions. Prepare with all accounting and finance treatments
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Q2. Prepare with all the accounting questions
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Good knowledge of basic accounting rules & IFRS.

Q1. 1. Tell me something about your self? 2. Share how your work day starts ? 3. Share whats the day to day activity you do in your work profile? 4. Few technical questions related to role? 5. Share some exper...read more
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Q1. 1. Tell me about your self, experience, job profile etc? 2. How your current experience align with current role offered? 3. Achievements?
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Q1. Question related to AR invoice booking
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Q2. Question on Budget and Forecasting
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Q1. Journal Entries
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