IBM Accounts Payable Specialist Interview Questions and Answers for Experienced

Price-to-earnings (P/E) ratio is used to evaluate the share.

• P/E ratio compares the current market price of a share to its earnings per share (EPS).

• It helps investors determine if a stock is overvalued or undervalued.

• A high P/E ratio may indicate that the stock is overvalued, while a low P/E ratio may indicate that the stock is undervalued.

• For example, if a company has a P/E ratio of 20, it means that investors are will...read more

RTR process refers to Record to Report process which involves all activities from recording transactions to preparing financial statements.

• RTR process is a crucial part of accounting and finance operations.

• It involves recording financial transactions, reconciling accounts, and preparing financial statements.

• The process ensures accuracy and completeness of financial data.

• It includes activities like journal entries, gene...read more

Accruals are revenues earned but not yet received, while deferrals are payments received but not yet earned.

• Accruals are recorded as accounts receivable on the balance sheet.

• Deferrals are recorded as accounts payable on the balance sheet.

• Examples of accruals include interest income and sales revenue.

• Examples of deferrals include prepaid rent and unearned revenue.

• Accruals and deferrals are important for accurate financi...read more