90+ 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

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.

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

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

The three golden rules of accounting are the basis of all accounting practices.

• The first rule is the accounting equation: Assets = Liabilities + Equity

• The second rule is the double-entry principle: Every transaction has two equal and opposite effects on the accounting equation

• The third rule is the revenue recognition principle: Revenue should be recognized when it is earned, not when it is received

Accounts payable involves two parties: the company and its vendors. My short term goal is to learn the company's payment processes and build strong relationships with vendors. My long term goal is to streamline the accounts payable process and reduce costs.

• Accounts payable involves two parties: the company and its vendors

• Short term goal is to learn the company's payment processes and build strong relationships with vendors

• Long term goal is to streamline the accounts payable p...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

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.

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

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

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

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

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

Outstanding income refers to income that has been earned but not yet received.

• Outstanding income is also known as accounts receivable.

• It is recorded as an asset on the balance sheet.

• Examples include unpaid invoices or payments that are still pending.

• It is important for businesses to manage outstanding income to ensure cash flow and financial stability.

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.

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

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

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

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

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.

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

Accounts Payable is the amount a company owes to its vendors or suppliers for goods or services received but not yet paid for.

• AP is a liability account in the balance sheet

• It includes invoices, bills, and other expenses

• It is managed by the AP department

• It is important for cash flow management and vendor relationships

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

Handling tally software is a key responsibility for an Accounts Payable Associate.

• Familiarity with Tally software is essential for recording and managing financial transactions.

• Ability to input and reconcile invoices, payments, and expenses in Tally.

• Knowledge of generating reports and analyzing data in Tally for financial reporting purposes.

• Experience in troubleshooting and resolving issues related to Tally software.

• Training and continuous learning to stay updated on new feat...read more

GST and tax payments can be made through various modes and tax-saving can be done through investments and deductions.

• GST payments can be made online through the GST portal or through authorized banks

• Tax payments can be made online through the income tax department website or through authorized banks

• Tax-saving can be done through investments in schemes like ELSS, PPF, NPS, etc.

• Deductions can be claimed under sections like 80C, 80D, 80G, etc.

• Consulting a tax expert can help in ...read more

There are several types of accounts, including asset, liability, equity, revenue, and expense accounts.

• Asset accounts represent items of value owned by a company, such as cash, inventory, and property.

• Liability accounts represent debts owed by a company, such as loans and accounts payable.

• Equity accounts represent the residual value of a company's assets after liabilities are subtracted.

• Revenue accounts represent income earned by a company, such as sales revenue.

• Expense accou...read more

Procurement process involves identifying needs, selecting suppliers, negotiating contracts, and purchasing goods/services.

• Identify the need for goods/services

• Select potential suppliers

• Negotiate contracts and terms

• Purchase goods/services

• Receive and inspect goods/services

• Process invoices and payments

• Maintain records and monitor supplier performance

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

• Accounts payable is a liability on the balance sheet.

• It represents the company's short-term obligations to pay for goods or services.

• It includes invoices, bills, and other payment requests from suppliers.

• Accounts payable is typically recorded when the goods or services are received, not when the payment is made.

• It is an important aspect of managing cash flo...read more

Accounts receivable refers to the money owed to a company by its customers for goods or services provided on credit.

• Accounts receivable is an asset on the balance sheet.

• It represents the amount of money that customers owe to the company.

• It is created when a company sells goods or services on credit terms.

• Accounts receivable is typically collected within a specified period, known as the credit period.

• Companies often send invoices to their customers to request payment for the o...read more

There are three main types of purchase orders: Standard PO, Planned PO, and Blanket PO.

• Standard PO: Used for one-time purchases with specific quantities and prices.

• Planned PO: Used for recurring purchases with estimated quantities and prices.

• Blanket PO: Used for long-term agreements with multiple deliveries over a period of time.

Accounts Payable process involves receiving, verifying, and processing invoices for payment.

• Receive invoices from vendors

• Verify the accuracy of the invoice details

• Match the invoice with purchase order and goods receipt

• Code the invoice with appropriate account and cost center

• Obtain approval for payment

• Process payment and update the accounting records

• Maintain vendor records and resolve any discrepancies

Vendor payments are released after invoice processing is completed and approved.

• Verify accuracy of invoice details and match with purchase orders

• Obtain necessary approvals from relevant departments

• Enter invoice information into accounting system

• Schedule payment based on payment terms agreed with vendor

• Release payment through approved payment method

• Maintain records of payments made for reconciliation purposes

Accounts Payable 2 way-3 way matching is a process used to ensure that the purchase order, invoice, and receiving report all match before payment is made.

• Accounts Payable 2 way-3 way matching involves comparing the purchase order, invoice, and receiving report to ensure accuracy.

• In a 2-way match, the invoice is compared to the purchase order to ensure the prices and quantities match.

• In a 3-way match, the invoice is compared to both the purchase order and the receiving report ...read more

The three golden rules of accounting are: Debit the receiver, Credit the giver, and Debit what comes in, Credit what goes out.

• Debit the receiver: When an asset is received, it is debited. For example, when cash is received, it is debited.

• Credit the giver: When a liability is incurred, it is credited. For example, when a loan is taken, it is credited.

• Debit what comes in, Credit what goes out: When there is an increase in assets, it is debited. When there is a decrease in asset...read more

B2B stands for business-to-business, which refers to transactions between two businesses rather than between a business and a consumer.

• B2B transactions involve the exchange of goods or services between two businesses.

• Examples of B2B transactions include a manufacturer selling products to a retailer, or a software company providing services to a consulting firm.

• B2B transactions often involve larger quantities and higher prices than B2C transactions.

• B2B relationships are typica...read more

Accounting rules are principles and guidelines that govern the preparation and presentation of financial statements.

• Accrual accounting: revenue and expenses are recognized when earned/incurred, not when cash is received/paid

• Matching principle: expenses should be matched with the revenue they helped generate

• Consistency principle: accounting methods should be consistent from one period to the next

• Materiality principle: only significant items should be recorded in financial stat...read more

Procure to Pay is the process of obtaining goods or services from a vendor, receiving and approving the invoice, and making payment.

• Procurement process starts with identifying the need for goods or services

• Vendor selection and negotiation of terms and pricing

• Purchase order creation and goods receipt

• Invoice verification and approval

• Payment processing

• Examples: requesting office supplies, hiring a contractor for a project

2 way match and 3 way match are methods used in accounts payable to ensure accuracy in invoicing and payment.

• 2 way match involves matching the invoice to the purchase order

• 3 way match involves matching the invoice to the purchase order and receiving report

• Helps prevent overpayment or underpayment

• Ensures that the goods or services were received as per the agreement

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

• The golden rules include: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified in the accounting system.

• For example, when a company receives cash from a customer, the cash account is debited (increas...read more

Deferred income is a liability that arises when a company receives payment for goods or services that it has not yet delivered or rendered.

• Deferred income is also known as unearned revenue.

• It is recorded as a liability on the balance sheet until the goods or services are delivered or rendered.

• Once the goods or services are delivered or rendered, the deferred income is recognized as revenue on the income statement.

• Examples of deferred income include prepaid rent, prepaid insur...read more

Nominal and Golden rules of accounts are basic principles used in accounting to determine how transactions are recorded.

• Nominal rule: Debit all expenses and losses, credit all incomes and gains.

• Golden rule: Debit what comes in, credit what goes out.

• Examples: Debiting an expense account for office supplies purchased, crediting a revenue account for sales made.

TDS (Tax Deducted at Source) and GST (Goods and Services Tax) are tax systems used in India.

• TDS is a system where tax is deducted at the time of making certain payments such as salary, rent, etc.

• GST is a value-added tax levied on the supply of goods and services.

• TDS and GST are both important for ensuring tax compliance and revenue collection.

• TDS rates vary depending on the nature of payment and the income tax slab of the recipient.

• GST rates vary based on the type of goods or...read more

Accounts Payable refers to 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 balance sheet representing the company's obligation to pay off short-term debts to suppliers.

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

• Accounts Payable is an important part of the company's working capital management.

• It is typically recorded as a current...read more

AP in SAP stands for Accounts Payable, which is a module in the SAP software that manages and tracks all financial transactions related to vendor invoices and payments.

• AP in SAP is responsible for recording and processing vendor invoices

• It manages the payment process and tracks outstanding payments

• AP in SAP integrates with other modules like General Ledger and Purchasing

• It helps in maintaining accurate financial records and supports financial reporting

• AP in SAP automates invo...read more