10+ Accounts Payable Executive Interview Questions and Answers for Freshers

Answers to common accounting questions including financial, cost, and management accounting, as well as ratios and golden rules.

• Financial accounting is the process of recording, summarizing, and reporting financial transactions of a business.

• Cost accounting involves analyzing the costs of producing a product or service to help with decision-making and cost control.

• Management accounting provides financial information to help with planning, controlling, and decision-making with...read more

Answers to common accounts payable terms

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

• 3 way match: matching the invoice to the purchase order and receipt of goods

• P2P cycle: Procure to Pay cycle, the process of purchasing goods or services

• Purchase requisition: a document used to request goods or services

• Invoice: a bill for goods or services received

• Purchase order: a document used to order goods or services

JE tracker is a tool used in accounting to record journal entries and their details.

• JE tracker stands for Journal Entry tracker.

• It is used to record journal entries and their details such as date, account name, debit/credit amount, and description.

• It helps in tracking and managing journal entries for accurate financial reporting.

• Examples of information recorded in JE tracker include adjusting entries, accruals, and deferrals.

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

• It is a liability account in the company's balance sheet.

• It includes invoices, bills, and other expenses that are yet to be paid.

• It is an important aspect of cash flow management.

• Examples include rent, utilities, office supplies, and inventory purchases.

Accounts payable is the amount a company owes to its suppliers for goods and services purchased on credit.

• Accounts payable is a liability on the balance sheet

• It represents the amount a company owes to its suppliers for goods or services received

• Accounts receivable is the opposite, representing the money owed to a company by its customers

• Accounts payable is typically paid within a certain period, often 30, 60, or 90 days

• Examples of accounts payable include invoices from vendor...read more

Purchase orders can be categorized into standard, blanket, contract, and planned types.

• Standard purchase orders are used for one-time purchases of goods or services.

• Blanket purchase orders are used for recurring purchases of goods or services within a specific period.

• Contract purchase orders are used for purchases made under a long-term contract with a supplier.

• Planned purchase orders are used to plan future purchases based on anticipated needs.

• Each type of purchase order ser...read more

Back reconciliation refers to the process of verifying and correcting discrepancies in financial records to ensure accuracy.

• Back reconciliation involves comparing financial records with bank statements to identify any discrepancies.

• It is important to investigate and resolve any differences found during the reconciliation process.

• Back reconciliation helps ensure that all transactions are accurately recorded and accounted for.

• Examples of back reconciliation tasks include matchi...read more

Freight charges entry involves adjusting debit and credit notes for accurate accounting.

• Freight charges are typically recorded as an expense in the accounts payable ledger.

• Debit notes are used to increase the amount owed to a vendor for additional charges, while credit notes decrease the amount owed.

• Adjustments for freight charges may involve correcting errors in the original entry or accounting for discounts or refunds.

• Proper documentation and communication with vendors are ...read more

Bad debt refers to money owed by a debtor that is unlikely to be paid back, resulting in a loss for the creditor.

• Bad debt is typically the result of customers defaulting on their payments.

• It is recorded as an expense on the creditor's financial statements.

• Companies may write off bad debts to remove them from accounts receivable.

• Examples include unpaid invoices, loans that are not repaid, and credit card debt that goes into default.

We are highly proficient in accounts with a strong track record of accuracy and efficiency.

• Our team consistently meets deadlines for processing invoices and payments.

• We have implemented automated systems to streamline the accounts payable process.

• Our financial reports are detailed and accurate, providing valuable insights for decision-making.

• We have a low error rate in accounts payable transactions, ensuring financial integrity.

• We regularly conduct audits to ensure compliance...read more

I make payments through electronic transfers, checks, and online payment platforms.

• Utilize electronic transfers for quick and efficient payments

• Issue checks for traditional payment methods

• Use online payment platforms like PayPal or Venmo for convenience

• Ensure accuracy in payment details to avoid errors

TDS rate refers to the rate at which tax is deducted at source on various payments such as salary, rent, commission, etc.

• TDS rates vary depending on the nature of payment and the recipient's status

• For example, TDS rate on salary income is different from TDS rate on interest income

• TDS rates are specified by the Income Tax Department and are subject to change periodically

Types of purchase orders include standard, blanket, contract, and planned.

• Standard purchase order is used for one-time purchases

• Blanket purchase order is used for recurring purchases over a period of time

• Contract purchase order is used for long-term agreements with suppliers

• Planned purchase order is used for future purchases based on forecasted requirements