Tech Mahindra SAP Fico Consultant Interview Questions and Answers

Accounts receivable is the money owed to a company by its customers, while accounts payable is the money a company owes to its suppliers.

• Accounts receivable refers to the outstanding invoices or money owed to a company by its customers for goods or services provided.

• Accounts payable refers to the outstanding invoices or money that a company owes to its suppliers for goods or services received.

• Accounts receivable is an ...read more

Suspense A/C is a temporary account used to hold transactions until they can be properly classified.

• Suspense A/C is also known as a clearing account or a transit account.

• It is used when there is uncertainty or discrepancy in the classification of a transaction.

• Transactions are initially recorded in the suspense account until they can be correctly allocated to the appropriate accounts.

• Once the correct classification is ...read more

The profit in the P&L a/c is transferred to the retained earnings account.

• Profit is transferred to the retained earnings account to reflect the accumulated profits of the company.

• Retained earnings account is a part of the equity section on the balance sheet.

• The transfer is done at the end of the accounting period.

• Retained earnings can be used for reinvestment, dividends, or other purposes.

• Example: If a company has a pr...read more