6 questions reported in Deloitte interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Merger models, accretion/dilution, purchase accounting and deal judgement. 2 questions
Foundational screen. Expect it early in a first round.
Explain the difference between accrual and cash accounting, and why public companies report on an accrual basis. Give an example where the two diverge materially.
A quick screen on whether you actually understand accrual mechanics.
Explain the difference between a prepaid expense and an accrued liability. Give an example of each and the cash flow effect.
Regulatory capital, ROTE against cost of equity, and why EV is meaningless. 1 question
CECL/IFRS 9 changed how banks reserve for losses. This tests understanding of current accounting.
Explain how banks calculate loan loss provisions under CECL. How does this differ from the old incurred loss model, and why does it matter for earnings volatility?
Cyclicality, operating leverage, backlog quality and mid-cycle earnings. 1 question
Common in energy, industrials and shipping where asset write-downs are routine.
When must a company impair a long-lived asset, and how does it differ from a goodwill impairment?
Driver-based forecasts, variance analysis and forecast accuracy. 1 question
Used in FP&A and strategic finance interviews to test decision-support judgement.
A team wants to outsource a process. The vendor charges $900,000 per year. Keeping it in-house costs $1.2m, but $500,000 of that is unavoidable fixed cost for the next two years. Should the company…
Capital structure, covenant headroom, FX and interest rate hedging. 1 question
Treasury candidates are expected to understand why an economically sensible hedge can create reported earnings volatility.
Why does hedge accounting matter to a treasury team? Explain the basic difference between a cash flow hedge and a fair value hedge.
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Deloitte.