100+ Accounts Payable Associate Interview Questions and Answers

Bank reconciliation ensures accuracy of bank transactions. Profit and loss account shows financial performance of a company.

• Bank reconciliation matches the bank statement with the company's records to identify any discrepancies.

• It helps to ensure the accuracy of bank transactions and prevent fraud.

• Profit and loss account shows the financial performance of a company over a period of time.

• It includes all the revenues and expenses of the company and calculates the net profit or ...read more

Handling accountant involves processing invoices, reconciling accounts, and ensuring timely payments.

• Processing invoices by verifying accuracy and obtaining approvals

• Reconciling accounts by matching invoices with purchase orders and receipts

• Ensuring timely payments to vendors to maintain good relationships

• Communicating with vendors and internal departments to resolve any discrepancies

• Maintaining accurate records of all financial transactions

An account is a system of recording and summarizing financial transactions.

• Accounts are used to keep track of financial transactions in a business.

• They are used to record and summarize transactions such as sales, purchases, and expenses.

• Accounts are important for financial reporting and analysis.

• Examples of accounts include accounts payable, accounts receivable, and general ledger accounts.

Accounting is important for businesses to track financial transactions, make informed decisions, and comply with regulations.

• Helps track financial transactions and monitor cash flow

• Provides financial information for decision-making

• Assists in complying with tax and regulatory requirements

• Helps in budgeting and forecasting

• Provides insights into the financial health of the business

• Helps in identifying areas for cost-cutting or revenue growth

• Assists in securing loans or investmen...read more

Journal entries for credit balance, accounts payable, and bank charges.

• Credit balance is an amount owed to the company by a vendor or customer.

• Journal entries for accounts payable involve debiting accounts payable and crediting the corresponding expense account.

• Bank charges journal entries involve debiting bank charges and crediting cash or bank account.

• If there is a credit balance in accounts payable, it can be recorded by debiting accounts payable and crediting the vendor's...read more

Vlookup is a function in Excel used to search for a specific value in a table and return a corresponding value.

• Vlookup stands for 'Vertical Lookup'

• It is used to search for a specific value in the first column of a table and return a corresponding value from a specified column

• It is commonly used in accounting and finance for tasks such as matching invoices to purchase orders

• Syntax: =VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])

• Example: =VLOOKUP(A2, B2:C10, ...read more

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information for decision-making.

• Accounting helps businesses keep track of their financial transactions and performance.

• It provides financial information to stakeholders such as investors, creditors, and management.

• Accounting helps in making informed decisions about investments, budgeting, and forecasting.

• It is important for tax compliance and financial reporting.

• Examples of ...read more

Accounts payable job requires attention to detail and organization, while auditor job involves analysis and verification.

• Accounts payable job involves processing invoices, making payments, and reconciling accounts.

• Auditor job involves examining financial records, assessing internal controls, and identifying risks.

• Accounts payable requires strong attention to detail and organization to ensure accuracy in processing payments.

• Auditors need analytical skills to interpret financia...read more

The general entry for bank interest is to debit the bank account and credit the interest income account.

• Debit bank account

• Credit interest income account

• Interest income is recorded as revenue

• Bank account is reduced by the amount of interest paid

• Example: Debit Bank Account $100, Credit Interest Income Account $100

Account holders verify their names by providing official identification documents.

• Account holders provide government-issued IDs such as driver's licenses or passports.

• They may also provide other official documents like birth certificates or social security cards.

• Some companies may require additional verification such as utility bills or bank statements with the account holder's name on them.

Golden rules for Accounts Payable process with examples

• Ensure accuracy of data entry and documentation

• Verify invoices against purchase orders and receipts

• Match invoices to correct GL accounts

• Pay invoices on time to avoid late fees and maintain good vendor relationships

• Maintain proper records and documentation for audits

• Example: Verify that the invoice amount matches the purchase order and receipt before processing payment

• Example: Ensure that invoices are coded to the correct ...read more

Bad debt refers to an amount owed by a debtor that is unlikely to be paid and is written off as a loss by the creditor.

• Bad debt is a financial loss for the creditor

• It occurs when a debtor fails to pay back the amount owed

• It is written off as an expense in the creditor's financial statements

• Examples include unpaid credit card bills, defaulted loans, and bounced checks

The T code for processing Credit note in SAP is FB75.

• The T code for processing Credit note in SAP is FB75.

• FB75 is used to create a credit memo in SAP.

• Credit notes are typically used to correct errors in invoices or to provide refunds to customers.

Confirm goods sold in accounts by matching sales invoices with inventory records.

• Match sales invoices with inventory records to ensure accuracy

• Verify quantities and prices on sales invoices match with inventory records

• Reconcile sales revenue with goods sold in accounts

• Ensure proper documentation and approval for goods sold entries

Financial statements are reports that show the financial performance of a company.

• There are three main financial statements: balance sheet, income statement, and cash flow statement.

• The balance sheet shows the company's assets, liabilities, and equity at a specific point in time.

• The income statement shows the company's revenue, expenses, and net income over a period of time.

• The cash flow statement shows the company's inflows and outflows of cash over a period of time.

• Financia...read more

AP, P2P CYCLE refers to the accounts payable and procure-to-pay cycle in financial management.

• AP stands for Accounts Payable, which is a department responsible for managing and processing payments to vendors and suppliers.

• P2P stands for Procure-to-Pay, which is the process of purchasing goods or services from suppliers and paying for them.

• The AP, P2P cycle involves various steps such as invoice processing, purchase order creation, goods receipt, vendor payment, and reconcilia...read more

P2P Cycle is the process of procuring goods or services, from purchase requisition to payment.

• P2P stands for Procure-to-Pay.

• It involves several steps such as purchase requisition, purchase order, goods receipt, invoice verification, and payment.

• The cycle starts with a purchase requisition, which is a request for goods or services.

• Once approved, a purchase order (PO) is created, specifying the details of the purchase.

• PO types include standard PO, blanket PO, and contract PO.

• A ...read more

Some major challenges in posting invoices include missing or incorrect information, duplicate invoices, and delays in approvals.

• Missing or incorrect information on invoices can lead to delays in processing.

• Identifying and handling duplicate invoices can be time-consuming and require additional verification.

• Delays in approvals from various departments or stakeholders can hold up the invoice posting process.

Expenses and income are recorded in the accounting system using double-entry bookkeeping method.

• Expenses are recorded as debits, increasing the expense account and decreasing the asset or liability account.

• Income is recorded as credits, increasing the income account and increasing the asset account.

• The double-entry system ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced.

• Examples: Recording a utility bill payment as a debit to the utilities...read more

Two-way matching compares invoice to purchase order, three-way matching adds receipt of goods

• Two-way matching compares invoice to purchase order to ensure prices and quantities match

• Three-way matching adds receipt of goods to ensure all three documents match before payment is made

• Two-way matching is more common and efficient, while three-way matching provides an extra layer of validation

• Example: In two-way matching, an invoice for 100 units at $10 each is compared to a purcha...read more

Bank reconciliation statement is a document that compares the bank statement with the company's records to identify any discrepancies.

• It helps to identify any errors or fraud in the company's financial records.

• It ensures that the company's cash balance is accurate.

• It includes items such as outstanding checks, deposits in transit, and bank fees.

• Example: If the company records show a check was issued but it does not appear on the bank statement, it may be an outstanding check.

• E...read more

The golden rules in accounting are basic principles that guide the process of recording financial transactions.

• The golden rules include the principles of debit and credit, which are used to record transactions accurately.

• Debit what comes in, credit what goes out.

• Debit the receiver, credit the giver.

• Debit all expenses and losses, credit all incomes and gains.

• These rules help ensure that the accounting equation (Assets = Liabilities + Equity) remains balanced.

• For example, when ...read more

P2P cycle is the process of procuring goods or services, receiving and approving invoices, and making payments to vendors.

• P2P cycle stands for Procure-to-Pay cycle.

• It involves steps like requisitioning, purchasing, receiving, invoicing, and payment.

• Accounts payable is a department responsible for processing invoices and making payments to vendors.

• Golden rules in accounts payable include accuracy, timeliness, and proper documentation.

• I should be hired because of my attention t...read more

A journal entry records financial transactions in accounting, detailing debits and credits for accurate financial reporting.

• A journal entry typically includes the date of the transaction.

• It consists of at least one debit and one credit entry.

• Example: Purchasing office supplies for $500 would be recorded as: Debit Office Supplies $500, Credit Cash $500.

• Each entry should have a brief description for clarity.

• Journal entries are the first step in the accounting cycle.

Accounts Payable is a financial function that involves managing and recording a company's expenses and payments to vendors and suppliers.

• Accounts Payable is responsible for processing invoices and making payments to vendors.

• It involves verifying the accuracy of invoices, ensuring proper authorization for payments, and maintaining records of transactions.

• Accounts Payable also includes reconciling vendor statements, resolving payment discrepancies, and managing vendor relations...read more

Accrued income is revenue earned but not yet received or recorded in the accounting books.

• Accrued income is recognized as a current asset on the balance sheet.

• It is recorded through adjusting entries at the end of an accounting period.

• Examples include interest income earned but not yet received, rent income earned but not yet received, etc.

The process of purchasing involves identifying the need for goods or services, selecting a supplier, negotiating terms, placing an order, receiving and inspecting the goods or services, and processing payment.

• Identify the need for goods or services

• Select a supplier

• Negotiate terms

• Place an order

• Receive and inspect the goods or services

• Process payment