Fincash Interview Questions and Answers

PO invoices are based on purchase orders while NON-PO invoices are not.

• PO invoices are invoices that are associated with a purchase order.

• NON-PO invoices are invoices that are not associated with a purchase order.

• PO invoices require a purchase order number to be included on the invoice.

• NON-PO invoices do not require a purchase order number to be included on the invoice.

• PO invoices are typically used for larger purchases or ongoing services.

• NON-PO invoices are typically used f...read more

Accounts payable process is the set of procedures and policies that a company follows to manage its outstanding invoices and payments to vendors.

• Receiving and verifying invoices from vendors

• Matching invoices with purchase orders and receiving reports

• Obtaining approval for payment

• Entering invoices into the accounting system

• Preparing and issuing payments to vendors

• Reconciling vendor statements

• Maintaining accurate records of all transactions

Procure to pay process is the cycle of purchasing goods or services, receiving them, and paying for them.

• Procurement: identifying the need for goods or services and selecting a supplier

• Purchase order: creating a document that outlines the details of the purchase

• Receipt of goods or services: verifying that the goods or services were received as ordered

• Invoice processing: receiving and verifying the invoice from the supplier

• Payment: issuing payment to the supplier

• Examples: orde...read more

Procure to pay process involves obtaining goods or services and paying for them.

• Procurement department identifies the need for goods or services

• Vendor selection and negotiation

• Purchase order creation and approval

• Goods or services receipt and inspection

• Invoice receipt and verification

• Payment processing and reconciliation

• Vendor management and performance evaluation

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

• It is a liability account in the company's general ledger.

• It includes invoices, bills, and other expenses that need to be paid.

• It is important for managing cash flow and maintaining good relationships with vendors.

• Examples include rent, utilities, and inventory purchases.

• Accounts payable can be managed through software systems like SAP or QuickBooks.

Debit balance is the amount owed by a customer to a supplier or vendor.

• Debit balance is the opposite of credit balance.

• It represents a positive balance in the account.

• It indicates that the customer owes money to the supplier or vendor.

• For example, if a customer has a debit balance of $500, it means they owe $500 to the supplier or vendor.

Balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

• Balance sheet is a snapshot of a company's financial position.

• It includes assets (what the company owns), liabilities (what the company owes), and shareholders' equity (the company's net worth).

• The balance sheet follows the accounting equation: Assets = Liabilities + Shareholders' Equity.

• It helps in assessing the financial health and stabilit...read more

Golden rules of accounts refer to basic principles of accounting that must be followed for accurate financial reporting.

• The first golden rule is to maintain accurate records of all financial transactions.

• The second golden rule is to ensure that all transactions are recorded in the correct accounting period.

• The third golden rule is to ensure that all transactions are recorded in the correct account.

• The fourth golden rule is to ensure that all transactions are recorded at their...read more