BSC Global SAP Fico Consultant Interview Questions and Answers

Accounts receivable is the money owed to a company by its customers, while accounts payable is the money a company owes to its suppliers.

• Accounts receivable refers to the outstanding invoices or money owed to a company by its customers for goods or services provided.

• Accounts payable refers to the outstanding invoices or money that a company owes to its suppliers for goods or services received.

• Accounts receivable is an ...read more

Suspense A/C is a temporary account used to hold transactions until they can be properly classified.

• Suspense A/C is also known as a clearing account or a transit account.

• It is used when there is uncertainty or discrepancy in the classification of a transaction.

• Transactions are initially recorded in the suspense account until they can be correctly allocated to the appropriate accounts.

• Once the correct classification is ...read more

The profit in the P&L a/c is transferred to the retained earnings account.

• Profit is transferred to the retained earnings account to reflect the accumulated profits of the company.

• Retained earnings account is a part of the equity section on the balance sheet.

• The transfer is done at the end of the accounting period.

• Retained earnings can be used for reinvestment, dividends, or other purposes.

• Example: If a company has a pr...read more

A company code can be assigned to only one chart of accounts.

• A company code can have multiple company codes, but each company code can only be assigned to one chart of accounts.

• The chart of accounts determines the account structure and is used for recording transactions.

• If a company has multiple subsidiaries with different accounting requirements, it may need to create multiple company codes with different charts of ac...read more

Four situations where we have to create a Bank Reconciliation Statement

• When there is a discrepancy between the bank balance and the company's books

• When there are outstanding checks or deposits in transit

• When there are bank errors or fees that need to be reconciled

• When there are adjustments for interest earned or bank charges