10+ Accounts Payable Interview Questions and Answers

An invoice is a document requesting payment for goods or services, a PO is a purchase order, BRS is bank reconciliation statement, trial balance is a summary of all accounts, P&L account is a financial statement showing revenue and expenses, cash flow statement shows cash inflows and outflows, subsidiary books are records of specific transactions, debit note is a document for recording an increase in liability, credit note is a document for recording a decrease in liability, ...read more

My short-term goal is to become proficient in the accounts payable processes and systems. My long-term goal is to advance my career in the field and take on more responsibilities.

• Short-term goal: Become proficient in accounts payable processes and systems

• Short-term goal: Learn and adapt to the company's specific accounts payable procedures

• Long-term goal: Advance career in the field of accounts payable

• Long-term goal: Take on more responsibilities and contribute to process impr...read more

Debit note is issued by a buyer to a seller to request a credit for overpayment or return of goods. Credit note is issued by a seller to a buyer to correct an overcharge or return of goods.

• Debit note is issued by the buyer to the seller to request a credit for overpayment or return of goods.

• Credit note is issued by the seller to the buyer to correct an overcharge or return of goods.

• 3-way matching involves matching the purchase order, goods receipt, and supplier invoice to ens...read more

Depreciation is the decrease in value of an asset over time, while appreciation is the increase in value of an asset over time.

• Depreciation is a method used to allocate the cost of a tangible asset over its useful life.

• Appreciation is the increase in value of an asset due to factors such as market demand or improvements made to the asset.

• Example of depreciation: A company purchases a delivery truck for $50,000 and estimates its useful life to be 5 years. Using straight-line d...read more

A purchase credit journal entry records returns or discounts on purchased goods, affecting accounts payable and inventory.

• A purchase credit entry decreases accounts payable, reflecting a reduction in liabilities.

• Example: If a company returns $500 worth of goods, the entry would be: Debit Accounts Payable $500, Credit Inventory $500.

• This entry ensures accurate financial reporting by adjusting the inventory and liabilities.

• It is essential for maintaining accurate records of pur...read more

Duplicate payments can occur due to various reasons, including system errors and manual oversight.

• Manual entry errors: Entering the same invoice twice due to oversight.

• System glitches: Software bugs that cause invoices to be processed multiple times.

• Vendor resubmissions: Vendors resending invoices for payment without realizing they were already paid.

• Lack of invoice tracking: Not having a robust system to track paid invoices can lead to duplicates.

Accounts payable is the amount a company owes to its suppliers for goods and services purchased on credit. Cost accounts are used to track the costs associated with producing goods or services.

• Accounts payable is a liability on the balance sheet representing the amount a company owes to its suppliers.

• Cost accounts are used to track the costs incurred in producing goods or services, including direct materials, labor, and overhead.

• Examples of cost accounts include raw materials...read more

The golden rule of accounting is to debit the receiver and credit the giver.

• Debit the account that receives something

• Credit the account that gives something

• Maintains the balance sheet equation of assets = liabilities + equity

• Example: Debit cash account when receiving cash, credit accounts payable when paying a vendor

The P2P cycle, or procure-to-pay cycle, is the process of obtaining goods or services from a vendor and paying for them.

• The cycle starts with the need for goods or services, followed by requisitioning and approval.

• Next, the purchase order is created and sent to the vendor.

• Goods or services are received and inspected, then an invoice is generated by the vendor.

• The invoice is matched with the purchase order and receipt, approved for payment, and processed for payment.

• Finally, t...read more

SAP T Codes are transaction codes used to access specific functions in the SAP system quickly.

• T Codes are shortcuts to access various SAP modules and functions.

• For example, 'FB60' is used for entering vendor invoices.

• Another example is 'ME21N' for creating purchase orders.

• T Codes streamline processes, saving time for users.

• They are essential for navigating the SAP interface efficiently.