10+ Accounts Payable Associate Interview Questions and Answers for Freshers

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

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

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

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

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

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

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.

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

ERP stands for Enterprise Resource Planning. It is a software system used to manage business processes and data.

• SAP is an example of an ERP system.

• ERP systems integrate various business functions such as finance, HR, and supply chain management.

• ERP systems provide real-time data and analytics to help businesses make informed decisions.

• SAP ERP includes modules such as Financial Accounting, Sales and Distribution, and Materials Management.

An asset is a resource owned or controlled by a company that has economic value and can be used to generate future benefits.

• Assets are tangible or intangible items that are expected to provide future economic benefits.

• Examples of assets include cash, inventory, property, equipment, patents, and trademarks.

• Assets are recorded on a company's balance sheet and are classified as current or non-current.

• Current assets are expected to be converted into cash within one year, while no...read more