Accounts Receivable Associate Interview Questions and Answers for Freshers

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

Coordination of benefits is a process used by insurance companies to determine the order of payment when a patient is covered by more than one insurance plan.

• Coordination of benefits helps prevent overpayment by ensuring that each insurance plan pays their fair share of the patient's medical expenses.

• The primary insurance plan is responsible for paying the majority of the costs, while the secondary plan covers any remaining expenses.

• Examples of coordination of benefits includ...read more

Accounts receivable is the money owed to a company by its customers for goods or services provided on credit.

• Accounts receivable represents the amount of money owed to a company by its customers.

• It is a current asset on the balance sheet.

• Companies typically create invoices for goods or services provided on credit, which then become accounts receivable.

• Accounts receivable is an important part of a company's working capital management.

• Monitoring and collecting accounts receivab...read more

Understanding unbilled invoices and credit postings is crucial for accurate accounts receivable management.

• Unbilled invoices represent services rendered but not yet invoiced, affecting cash flow.

• Example: A consulting firm completes a project in December but invoices in January; this creates an unbilled amount.

• Credit postings adjust customer accounts for returns or discounts, ensuring accurate receivable balances.

• Example: A customer returns a product worth $100; a credit posti...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.

An offset is a deduction or credit applied to an account to balance out a debt or obligation.

• An offset is used to reduce or eliminate a debt owed by applying a credit from another source.

• Offsets are commonly used in accounts receivable to reconcile payments and outstanding balances.

• For example, if a customer returns a product and receives a credit, that credit can be used as an offset against their outstanding balance.

• Offsets can also be used in tax situations to reduce the a...read more

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

Journal entries record financial transactions in accounting, impacting accounts receivable.

• Debit Accounts Receivable when a sale is made on credit. Example: Sale of $1,000 on credit.

• Credit Sales Revenue to recognize income. Example: Credit Sales Revenue by $1,000.

• When payment is received, debit Cash and credit Accounts Receivable. Example: Payment of $1,000 received.