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Accounting Studies

Dear Community,

I want to prepare for case interview (long term prep). I want to learn about the business itself before. 

Currently, Trying to decide which introductory-level accounting course should I take. Financial Accounting or Managerial Accounting. Which one will be more useful for case interview/ working as consultant ?

Thank you for your help

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Profile picture of Francesco
on Aug 3, 2020
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success: ➡ interviewoffers.com | Ex BCG | 10Y+ Coaching

Hi there,

In terms of case interviews, you don’t need either of the two. You just need to know how to read a basic balance sheet and P&L, the basic ratios (eg P/E) and the basic financial formulas (eg breakeven). If you do 5-10 M&A/PE cases with P&L and/or balance sheet you should be fine.

In terms of the job, Financial Accounting could definitely be useful, in particular for due diligence, M&A and PE projects.

Best,

Francesco

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Profile picture of Robert
Robert
Coach
on Aug 2, 2020
McKinsey offers w/o final round interviews - 100% risk-free - 10+ years MBB coaching experience - Multiple book author

Hi Anonymous,

I believe it's not a right or wrong decision to take - but I'd definitely start with financial accounting since in reality this is also the basis for managerial accounting.

And financial accounting is like business 101 knowledge - just the basis for many other topics to cover, and having a solid understanding of  balance sheet, profit and loss statement as well as cashflow statement is definitely required.

Hope that helps - if so, please be so kind to give it a thumbs-up with the green upvote button below!

Robert

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Ian
Coach
on Aug 3, 2020
Ex-BCG | NYU Stern | MBB, Tech, & Strategy Coach | 5,000+ Sessions | 500+ Offers | 1,000+ Candidates | 100+ Countries

Hi there,

To be honest, you really only need to know basic accounting for cases, however it can't hurt to take a course in it.

I'd opt for Financial Accounting as it truly lays the groundwork for how businesses operate.

Deleted user
on Aug 4, 2020

Dear A,

I don't know the curiculum for both courses, but from the name I would rather pick up managerial accounting. 

Hope it helps and wish you best of luck,

André

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