Foundever Accounts Payable Specialist Interview Questions and Answers

P2P Cycle refers to the Procure-to-Pay Cycle, which is the process of purchasing goods or services and paying for them.

• The cycle starts with identifying the need for a product or service.

• Next, a purchase order is created and sent to the supplier.

• The supplier then delivers the product or service and sends an invoice.

• The invoice is matched with the purchase order and goods receipt.

• Finally, payment is made to the supplier...read more

There are several types of invoices including standard, commercial, proforma, credit, and debit invoices.

• Standard invoice: issued after goods or services are delivered

• Commercial invoice: used for international trade and includes details like the country of origin and harmonized system codes

• Proforma invoice: issued before goods or services are delivered and includes estimated costs

• Credit invoice: issued when a refund or...read more

AP is a P/L item as it represents expenses incurred by the company.

• Accounts Payable (AP) is a liability account that represents the amount owed by a company to its suppliers or vendors for goods or services received.

• As AP represents expenses incurred by the company, it is considered a P/L (Profit and Loss) item.

• AP is recorded on the balance sheet as a current liability until it is paid off.

• Once the payment is made, the...read more

Amortization is the process of spreading out the cost of an asset over its useful life.

• It is a method of accounting used to reduce the value of an asset over time

• It is commonly used for intangible assets such as patents and trademarks

• It is also used for loans and mortgages to calculate periodic payments

• The formula for amortization involves the initial cost, interest rate, and time period

• Example: A company purchases a p...read more

Accounting principles are the guidelines and rules that govern the field of accounting.

• Accounting principles ensure consistency and accuracy in financial reporting.

• They include concepts such as the matching principle, revenue recognition, and the time period principle.

• These principles are used to create financial statements that accurately reflect a company's financial position.

• They also help ensure that financial stat...read more

Accrual concept refers to the recognition of revenue and expenses in the accounting period in which they are earned or incurred, regardless of when payment is received or made.

• Accrual accounting is the opposite of cash accounting.

• It is used to match revenue and expenses to the correct accounting period.

• Accrued expenses and accrued revenues are examples of accruals.

• Accruals are recorded as adjusting entries in the accou...read more