Accounts Payable Accountant Interview Questions and Answers for Freshers

Fictitious assets are non-physical assets with no real value, amortization is the gradual write-off of an asset's cost, and surplus account in profit and loss is used to record excess profits.

• Fictitious assets are intangible assets that do not have a physical existence, such as goodwill or patents.

• Amortization is the process of spreading the cost of an intangible asset over its useful life, similar to depreciation for tangible assets.

• Surplus account in profit and loss is used...read more

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

• Accounts payable is a liability account that tracks the money a company owes to its vendors or suppliers.

• It includes invoices, bills, and other expenses that have not yet been paid.

• Accounts payable is an important part of a company's cash flow management.

• Examples of accounts payable include rent, utilities, and inventory purchases.

• Accounts payable can be managed t...read more

Accounts payable cycle involves processing invoices and making payments, while P2P cycle includes the entire procure-to-pay process from requisition to payment.

• Accounts payable cycle focuses on processing invoices, obtaining approvals, and making payments to vendors.

• P2P cycle includes the entire procure-to-pay process, starting from requisitioning goods or services, receiving them, and finally making payments.

• Accounts payable cycle is a subset of the P2P cycle, which encompas...read more

Matching process ensures accuracy of invoices and payments.

• Matching process involves comparing invoice details with purchase orders and receipts.

• It helps in identifying discrepancies and resolving them before payment.

• Matching can be done manually or through automated software.

• It is a crucial step in accounts payable to prevent errors and fraud.

• Matching also helps in maintaining good relationships with vendors.