20+ Accounts Payable Specialist Interview Questions and Answers

Accounts payable is a financial process that involves tracking and managing a company's outstanding invoices and payments.

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

• It involves recording and tracking invoices, making payments, and maintaining accurate financial records.

• Accounts payable is a liability on the company's balance sheet.

• Example: When a company receives an invoice from a supplier, it is recorded as ...read more

Accounts payable is money owed by a company to its suppliers, while accounts receivable is money owed to a company by its customers.

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

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

• Debit note is a document issued by a buyer to a seller to request a credit against an overpayment or return of goods.

• Credit note is a document...read more

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 obligations.

• Accounts payable is typically recorded when goods or services are received, but payment has not yet been made.

• Examples of accounts payable include utility bills, inven...read more

I have experience with three types of ERP software.

• I have experience with SAP ERP software.

• I have experience with Oracle ERP software.

• I have experience with Microsoft Dynamics ERP software.

Depreciation journal entries are used to record the decrease in value of an asset over time.

• Depreciation expense is debited to decrease the asset's value.

• Accumulated depreciation is credited to show the total depreciation over time.

• Depreciation expense is usually recorded monthly or annually.

• Depreciation journal entries follow the basic accounting equation: Assets = Liabilities + Equity.

Accrual is the process of recognizing expenses and revenues before they are actually paid or received.

• Accrual is a key concept in accounting where expenses and revenues are recorded when they are incurred, not when cash is exchanged.

• Golden Rules of Accounting are rules that guide the process of recording financial transactions, including rules like Debit the receiver, Credit the giver.

• PTP Cycle stands for Procure-to-Pay Cycle, which is the process of obtaining goods or servic...read more

Accrued income/expenses refer to revenues or expenses that have been earned/incurred but not yet received/paid.

• Accrued income is revenue that has been earned but not yet received, such as interest income.

• Accrued expenses are costs that have been incurred but not yet paid, like salaries or utilities.

• Accrued income/expenses are recorded in the financial statements to reflect the true financial position of a company.

• They are typically adjusted at the end of an accounting period ...read more

The P2P cycle involves purchasing goods/services and managing credits, not just debit notes.

• The P2P (Procure-to-Pay) cycle includes sourcing, purchasing, receiving, and paying for goods/services.

• Credits in the P2P cycle refer to adjustments for returns or overpayments, while debit notes are used for billing.

• For example, if a company returns defective goods, a credit note is issued to adjust the payable amount.

• Understanding the distinction helps in accurate financial reporting...read more

Prepaid expenses are expenses that have been paid in advance but have not yet been incurred.

• Prepaid expenses are recorded as assets on the balance sheet until they are used up or expire.

• Examples of prepaid expenses include prepaid rent, insurance premiums, and subscriptions.

• Once the prepaid expense is incurred, it is then recorded as an expense on the income statement.

The accounts cycle refers to the series of steps in processing financial transactions within an organization.

• 1. Transaction Identification: Recognizing and documenting financial transactions, such as receiving an invoice.

• 2. Invoice Processing: Verifying and entering invoices into the accounting system for payment.

• 3. Approval Workflow: Ensuring invoices are approved by the appropriate personnel before payment.

• 4. Payment Processing: Issuing payments to vendors, which can includ...read more

Three-way match is a process in accounts payable that ensures accuracy by comparing the purchase order, invoice, and receipt.

• Involves three documents: Purchase Order (PO), Invoice, and Receipt.

• Ensures that the goods/services received match what was ordered and billed.

• Example: If a company orders 100 widgets (PO), receives 100 widgets (Receipt), and is billed for 100 widgets (Invoice), all documents match.

• Helps prevent overpayments, fraud, and discrepancies in financial record...read more

Vendor reconciliation is the process of ensuring that a company's records match those of its vendors.

• Involves comparing the company's accounts payable records with vendor statements.

• Helps identify discrepancies such as missing invoices or incorrect payment amounts.

• Example: If a vendor claims $5,000 is owed, but the company shows $4,500, reconciliation will highlight the $500 difference.

• Regular reconciliation can prevent payment errors and maintain good vendor relationships.

• Ty...read more

Three-way matching is a process used in accounts payable to ensure accuracy in payments by comparing three key documents.

• Involves matching the purchase order, receiving report, and invoice.

• Ensures that the quantity and price on the invoice match the purchase order.

• Confirms that the goods or services were received as per the receiving report.

• Example: If a company orders 100 widgets for $10 each, the invoice should reflect this exactly.

• Helps prevent fraud and errors in payment ...read more

Microsoft Excel is a powerful spreadsheet application used for data organization, analysis, and visualization.

• Data Organization: Excel allows users to create tables for structured data management.

• Formulas and Functions: Users can perform calculations using built-in functions like SUM, AVERAGE, and VLOOKUP.

• Data Analysis: Excel provides tools like PivotTables for summarizing large datasets.

• Charts and Graphs: Users can create visual representations of data, such as bar charts an...read more

PO2 refers to partial pressure of oxygen, a key measurement in assessing oxygen levels in blood and respiratory function.

• Definition: PO2 stands for partial pressure of oxygen, indicating the amount of oxygen dissolved in the blood.

• Measurement: It is typically measured in millimeters of mercury (mmHg) and is crucial for evaluating respiratory function.

• Normal Range: A normal PO2 level in arterial blood is generally between 75 to 100 mmHg, indicating adequate oxygenation.

• Clinica...read more

P2P process stands for Procure-to-Pay process, which involves the entire cycle of purchasing goods or services from a vendor to making payment.

• P2P process starts with the requisition of goods or services needed by a department.

• Once approved, a purchase order is created and sent to the vendor.

• Goods or services are received and matched with the purchase order and invoice.

• Invoices are then processed for payment, typically through the accounts payable department.

• Finally, payments...read more

A credit purchase journal entry records purchases made on credit, impacting accounts payable and inventory.

• Debit Inventory or Expense account to reflect the purchase.

• Credit Accounts Payable to show the obligation to pay the supplier.

• Example: Purchasing $1,000 of inventory on credit would be recorded as: Debit Inventory $1,000, Credit Accounts Payable $1,000.

• This entry increases liabilities and assets, maintaining the accounting equation.