IBM Finance & Admin Business Analyst Interview Questions, Process, and Tips

Accounts payable refers to the amount of money a company owes to its suppliers or vendors for goods or services received but not yet paid for.

• Accounts payable is a liability on the company's balance sheet.

• It represents the short-term debt owed by the company.

• It includes invoices from suppliers, utility bills, and other expenses.

• Accounts payable is typically recorded as a current liability.

• It is an important aspect of c...read more

The three golden rules are basic principles in accounting that guide the recording of financial transactions.

• The first golden rule is the rule of personal accounts, which states that 'Debit the receiver, credit the giver'. For example, when cash is received from a customer, the cash account is debited and the customer's account is credited.

• The second golden rule is the rule of real accounts, which states that 'Debit wh...read more

PO stands for Purchase Order and Non-PO refers to transactions that do not require a purchase order.

• PO is a document that is issued by a buyer to a seller to initiate a purchase transaction.

• Non-PO transactions are usually smaller purchases that do not require a formal purchase order.

• PO transactions are typically more formal and involve a longer process of approval and documentation.

• Non-PO transactions are usually appro...read more

GR and IR are two important processes in SAP for goods receipt and invoice receipt.

• GR (Goods Receipt) is the process of receiving goods into a warehouse or plant from an external vendor or production line.

• IR (Invoice Receipt) is the process of receiving an invoice from a vendor for goods or services received.

• GR and IR are closely linked as the goods receipt must be completed before the invoice receipt can be processed.

• ...read more

An invoice is a bill for goods or services provided, while a credit note is a document issued to reduce the amount owed on an invoice.

• An invoice is issued when goods or services are sold or provided to a customer.

• An invoice shows the amount owed by the customer to the seller or service provider.

• A credit note is issued when there is a need to reduce the amount owed on an invoice.

• A credit note can be issued for various r...read more

Debit note and credit note are documents used in accounting to record adjustments made to a transaction.

• Debit note is issued when a buyer returns goods to a seller or when there is an overcharge in the invoice.

• Credit note is issued when a seller returns goods to a buyer or when there is an undercharge in the invoice.

• Debit note increases the buyer's account balance while credit note decreases it.

• Credit note increases th...read more

Reconciliation is the process of comparing two sets of records to ensure they are accurate and in agreement.

• Reconciliation involves comparing financial records, such as bank statements and accounting ledgers.

• It is important for identifying errors and discrepancies in financial records.

• Reconciliation can also be used to ensure compliance with regulations and internal policies.

• Examples of reconciliation include bank reco...read more