Wipro Executive Officer Interview Questions and Answers for Experienced

The accounts payable process refers to the procedures and systems in place for managing and paying a company's outstanding invoices and bills.

• Accounts payable process involves receiving invoices from vendors or suppliers.

• It includes verifying the accuracy of the invoices and ensuring they match purchase orders or contracts.

• The process also involves obtaining approval for payment and processing the payment to the vendor...read more

There are two main types of POs: Standard Purchase Orders and Blanket Purchase Orders.

• Standard Purchase Orders are used for one-time purchases of goods or services.

• Blanket Purchase Orders are used for recurring purchases over a period of time or for a specific amount.

• POs can also be classified based on the nature of the purchase, such as capital POs for long-term investments or expense POs for day-to-day expenses.

Accrual concept recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual concept matches revenues with expenses in the period they occur

• It ensures financial statements reflect the true financial position of a company

• Example: A company records revenue when it earns it, even if the customer has not yet paid

Entries are typically made when an invoice is created to record the transaction.

• Entries include recording the sale, updating accounts receivable, and updating inventory levels.

• Accrual accounting principles dictate that revenue should be recognized when earned, not necessarily when cash is received.

• Examples of entries include debiting accounts receivable and crediting sales revenue when an invoice is created.

• Entries als...read more

A credit memo is a document issued by a seller to a buyer, reducing the amount owed by the buyer for goods or services.

• Credit memo is used to correct errors in invoicing or to provide a refund to the buyer

• It typically includes details such as the reason for issuing the credit, the amount being credited, and the original invoice number

• Example: A company issues a credit memo to a customer for overcharging them on a previ...read more