10+ Accounts Receivable Associate Interview Questions and Answers

Accounts receivable is the money owed to a company by its customers. Reconciliation is the process of matching transactions to ensure accuracy. Accounting golden rules are basic principles of accounting. Collection means the process of collecting payments from customers.

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

• Reconciliation is the process of matching transactions to ensure accuracy

• Accounting golden rules are basic principles of accounting

• Collection ...read more

Bank reconciliation is the process of matching and comparing the balance in a company's accounting records with the balance in its bank statement.

• Bank reconciliation ensures that all transactions are accurately recorded in the company's accounting system.

• The process involves comparing the company's records of deposits, withdrawals, and other transactions with the bank statement.

• Any discrepancies are identified and resolved, such as outstanding checks or deposits in transit.

• Ba...read more

Social media has advantages like connecting people and disadvantages like addiction and cyberbullying.

• Advantages: Connects people globally, promotes businesses, spreads awareness, provides entertainment

• Disadvantages: Addiction, cyberbullying, privacy concerns, misinformation, mental health issues

• Example: Social media helped in spreading awareness about COVID-19 and connecting people during lockdowns

• Example: Cyberbullying on social media platforms has led to mental health issu...read more

The sections under TDS include 192, 194, 194A, 194B, 194C, 194D, 194DA, 194E, 194EE, 194F, 194G, 194H, 194-I, 194J, 194K, 194LA, and 195.

• Section 192: TDS on salary

• Section 194: TDS on dividends

• Section 194A: TDS on interest other than interest on securities

• Section 194B: TDS on winnings from lotteries or crossword puzzles

• Section 194C: TDS on payment to contractors and sub-contractors

• Section 194D: TDS on insurance commission

• Section 194DA: TDS on payment in respect of life insuran...read more

Unidentified transaction refers to a payment received without any information about the payer or the purpose of payment.

• It is a payment received without any accompanying information.

• It is difficult to allocate unidentified transactions to the correct customer account.

• Unidentified transactions can cause discrepancies in the accounts receivable balance.

• Examples include payments received without an invoice number or customer name.

Out of pocket refers to expenses paid by an individual that are not reimbursed by insurance or other sources.

• Out of pocket expenses are costs that are paid directly by the individual, without reimbursement.

• These expenses can include deductibles, copayments, and coinsurance for medical services.

• Out of pocket costs can also include expenses for services or products not covered by insurance.

• Individuals may have to pay out of pocket for certain medical treatments, prescription me...read more

Discussing the impact of technology on modern communication

• Technology has revolutionized communication by making it faster and more convenient

• Social media platforms like Facebook and Twitter have changed the way people interact and share information

• Video conferencing tools like Zoom have made remote communication easier and more efficient

• Mobile phones and messaging apps have made it possible to stay connected with others at all times

Depreciation is the allocation of the cost of an asset over its useful life.

• Depreciation is a non-cash expense that reflects the decrease in value of an asset over time.

• It is used to spread the cost of an asset over its useful life for accounting purposes.

• Common methods of depreciation include straight-line, double declining balance, and units of production.

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

Not a medical necessity refers to a treatment or service that is not required for the patient's health or well-being.

• Not a medical necessity means the treatment or service is not essential for the patient's health.

• Insurance companies may not cover treatments that are not considered medically necessary.

• Examples include cosmetic procedures, elective surgeries, and experimental treatments.

Prime cost is the total of direct materials cost and direct labor cost involved in production.

• Prime cost includes only the direct costs associated with production.

• It does not include indirect costs like overhead expenses.

• Formula: Prime Cost = Direct Materials Cost + Direct Labor Cost

• Example: If a company's direct materials cost is $10,000 and direct labor cost is $5,000, the prime cost would be $15,000.

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

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

• These rules help maintain the balance in the accounting equation: Assets = Liabilities + Equity.

• For example, when a company receives cash from a customer, it debits the cash account (what comes in) a...read more

Accounts Receivable (AR) is the balance of money owed to a company by customers for goods or services provided on credit.

• AR represents the amount of money owed to a company by customers

• It is typically recorded as a current asset on the balance sheet

• AR is an important metric for assessing a company's financial health and cash flow

• Examples: Invoices sent to customers for products or services provided, outstanding payments from clients

VLOOKUP and HLOOKUP are Excel functions used to search for a value in a table and return a corresponding value.

• VLOOKUP searches for a value in the first column of a table and returns a value in the same row from a specified column.

• HLOOKUP searches for a value in the first row of a table and returns a value in the same column from a specified row.

• Example: =VLOOKUP(A2, Sheet2!A1:B10, 2, FALSE) - searches for the value in cell A2 in the first column of the range A1:B10 on Sheet2...read more

Capitation is a payment arrangement in the healthcare industry where a provider is paid a fixed amount per patient regardless of the services provided.

• Capitation involves a fixed payment per patient per period of time, such as monthly or annually.

• Providers are responsible for delivering all necessary healthcare services to the patient within the fixed payment amount.

• It incentivizes providers to deliver cost-effective care and manage resources efficiently.

• Examples include heal...read more

Authorization is the process of giving someone permission to do or have something.

• Authorization involves granting permission or approval for a specific action or access.

• It is often required for financial transactions, accessing confidential information, or making decisions on behalf of an organization.

• Examples include obtaining approval from a supervisor to make a purchase, granting access to a secure database, or signing a contract to authorize a payment.

O2C cycle refers to the process of receiving and recording customer orders, fulfilling them, and receiving payment.

• The cycle starts with receiving customer orders and creating sales orders.

• The sales order is then processed and the goods or services are delivered to the customer.

• The invoice is generated and sent to the customer for payment.

• Payment is received and recorded in the accounts receivable ledger.

• The cycle ends with the reconciliation of accounts and the closure of th...read more