EXL Service Accounts Payable Associate Interview Questions and Answers

An account is a system of recording and summarizing financial transactions.

• Accounts are used to keep track of financial transactions in a business.

• They are used to record and summarize transactions such as sales, purchases, and expenses.

• Accounts are important for financial reporting and analysis.

• Examples of accounts include accounts payable, accounts receivable, and general ledger accounts.

Accounts payable involves two parties: the company and its vendors. My short term goal is to learn the company's payment processes and build strong relationships with vendors. My long term goal is to streamline the accounts payable process and reduce costs.

• Accounts payable involves two parties: the company and its vendors

• Short term goal is to learn the company's payment processes and build strong relationships with vendors

• Long term goal is to streamline the accounts payable p...read more

The general entry for bank interest is to debit the bank account and credit the interest income account.

• Debit bank account

• Credit interest income account

• Interest income is recorded as revenue

• Bank account is reduced by the amount of interest paid

• Example: Debit Bank Account $100, Credit Interest Income Account $100

Deferred income is a liability that arises when a company receives payment for goods or services that it has not yet delivered or rendered.

• Deferred income is also known as unearned revenue.

• It is recorded as a liability on the balance sheet until the goods or services are delivered or rendered.

• Once the goods or services are delivered or rendered, the deferred income is recognized as revenue on the income statement.

• Examples of deferred income include prepaid rent, prepaid insur...read more

Accounts payable is the amount of money a company owes to its vendors or suppliers for goods or services received.

• Accounts payable is a liability account in the company's balance sheet

• It includes invoices, bills, and other expenses that are yet to be paid

• It is important to manage accounts payable to avoid late payments and maintain good relationships with vendors

• Examples of accounts payable include rent, utilities, and inventory purchases

P2P cycle refers to the Procure-to-Pay cycle, which involves the entire process of purchasing goods or services from a supplier to making the payment.

• The P2P cycle starts with the identification of a need for goods or services.

• Next, a purchase requisition is created and approved by the appropriate authority.

• A purchase order is then issued to the supplier, detailing the goods or services required, quantity, price, and terms.

• Upon receipt of the goods or services, the supplier s...read more