Sumtotal Systems Financial Associate Interview Questions and Answers

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

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

• It represents the short-term debt that must be paid off within a specific period.

• Examples include invoices from suppliers for raw materials, utilities, or services.

• Managing accounts payable effectively is crucial for maintaining good ...read more

GRNI stands for Goods Received Not Invoiced, a financial term used to track goods that have been received by a company but not yet invoiced by the supplier.

• GRNI helps in tracking the liability of a company for goods received but not yet paid for.

• It is important for accurate financial reporting and inventory management.

• GRNI can indicate potential issues with the accounts payable process or discrepancies in inventory rec...read more

Accounts payable is the amount of money a company owes to its suppliers for goods or services purchased on credit.

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

• It represents the amount of money the company owes to its vendors or suppliers.

• Accounts payable is typically recorded when an invoice is received from the supplier.

• Examples include payments for inventory, utilities, rent, and other expenses.

• Mana...read more

P2P cycle refers to the procure-to-pay process in which goods or services are ordered, received, and paid for. A P.O. (purchase order) is a document issued by a buyer to a seller outlining the details of a purchase transaction.

• P2P cycle involves requisitioning, purchasing, receiving, and paying for goods or services

• Purchase Order (P.O.) is a document issued by a buyer to a seller specifying the details of the purchase,...read more

Depreciation is the allocation of the cost of a tangible asset over its useful life.

• Depreciation is a non-cash expense that reduces the value of an asset over time.

• It reflects the wear and tear, age, and obsolescence of the asset.

• Common methods of calculating depreciation include straight-line, double declining balance, and units of production.

• Examples of depreciable assets include buildings, vehicles, machinery, and e

Charging depreciation in P&L helps in spreading the cost of an asset over its useful life, matching expenses with revenues.

• Depreciation helps in accurately reflecting the wear and tear of assets over time.

• It allows for the allocation of the cost of an asset over its useful life, rather than expensing it all at once.

• By charging depreciation, the profit and loss statement reflects the true cost of using the asset to gene...read more

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

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

• It represents the short-term debt that must be paid off within a specific period.

• Examples include invoices from suppliers for raw materials, utilities, or services.

• Managing accounts payable effectively is crucial for maintaining good ...read more

GRNI stands for Goods Received Not Invoiced, a financial term used to track goods that have been received by a company but not yet invoiced by the supplier.

• GRNI helps in tracking the liability of a company for goods received but not yet paid for.

• It is important for accurate financial reporting and inventory management.

• GRNI can indicate potential issues with the accounts payable process or discrepancies in inventory rec...read more