30+ Accounts Receivable Executive Interview Questions and Answers

Section 194Q under income tax act mandates TDS at 0.1% on taxable value for buyers with turnover over 5 Cr, while sellers must charge TCS at 0.1%.

• Section 194Q of the income tax act requires buyers with turnover exceeding 5 Cr to deduct TDS at 0.1% on taxable value.

• If the turnover of the buyer is not more than 5 Cr, the seller has to charge TCS at 0.1% over the payable value.

• TDS and TCS rates are both set at 0.1% under this section.

• Compliance with Section 194Q is essential for...read more

I believe in streamlining processes and implementing automation to improve efficiency.

• Implementing an automated invoicing system to reduce errors and save time

• Integrating a payment gateway to allow for faster and more secure payments

• Regularly reviewing and updating credit policies to minimize bad debt

• Providing training to staff on effective communication and dispute resolution

• Utilizing data analytics to identify trends and improve collection strategies

Goods and services covered under RCM include specified categories like transportation services, insurance services, and goods purchased from unregistered dealers.

• Transportation services

• Insurance services

• Goods purchased from unregistered dealers

Accrued income is recorded as a debit in the balance sheet under current assets to reflect revenue earned but not yet received.

• Accrued income represents revenue that has been earned but not yet received.

• Debiting accrued income in the balance sheet under current assets increases the company's assets and reflects the amount of revenue that is owed.

• This adjusting journal entry ensures that the company's financial statements accurately reflect the revenue earned during the accoun...read more

My favorite color is blue because it represents calmness and serenity.

• I prefer blue because it has a calming effect on me.

• Blue is associated with the sky and the ocean, which are both vast and peaceful.

• Red is too bold and intense for my taste.

• Blue is a versatile color that can be paired with many other colors.

• Blue is often used in healthcare settings to promote a sense of calm and trust.

Input GST on goods can be claimed by ensuring proper documentation and compliance with GST regulations.

• Ensure that the goods are eligible for GST input credit

• Maintain proper invoices and receipts for the goods purchased

• File GST returns accurately to claim input credit

• Follow GST regulations and guidelines for claiming input credit

Accrued income is recorded as a revenue on the income statement even though the cash has not been received yet.

• Accrued income is recognized when it is earned, regardless of when it is received.

• To book accrued income, debit the accrued income account and credit the revenue account.

• Example: If a company provides services in December but does not receive payment until January, the accrued income for December would be recorded in December's financial statements.

The impact of social media on society

• Social media has revolutionized communication and connectivity

• It has transformed the way people interact and share information

• Social media has both positive and negative effects on society

• Examples include the spread of fake news, cyberbullying, and online activism

• It has also facilitated business growth and marketing opportunities

Knowledge of accounting rules and software is essential for an Accounts Receivable Executive.

• Must have a strong understanding of accounting principles and practices

• Proficiency in accounting software such as QuickBooks, Xero, or SAP

• Ability to analyze financial data and generate reports

• Familiarity with accounts receivable processes and procedures

• Experience with collections and customer service

• Attention to detail and accuracy in data entry

Ageing refers to the process of categorizing accounts receivable based on the length of time they have been outstanding. Customer pattern refers to the payment behavior of customers.

• Ageing helps in identifying the accounts that are overdue and need immediate attention.

• Ageing is usually done in buckets such as 0-30 days, 31-60 days, 61-90 days, and so on.

• Customer pattern helps in understanding the payment behavior of customers and identifying any trends or issues.

• Customer patt...read more

Yes, I have a reliable internet connection with high speed and minimal downtime.

• I have a high-speed internet connection with a reliable service provider.

• I rarely experience downtime or connectivity issues.

• I am able to access online resources and systems without any interruptions.

Accounts Receivable (AR) process involves invoicing, tracking payments, and resolving discrepancies.

• Generate and send invoices to customers

• Track payments and follow up on overdue accounts

• Reconcile payments with invoices and resolve any discrepancies

• Maintain accurate records of all transactions

• Communicate with customers to address any billing issues

• Generate reports on AR aging and collections

• Work closely with sales and customer service teams

There are two main types of invoice processing: manual and automated.

• Manual invoice processing involves physical handling of invoices, data entry, and verification by employees.

• Automated invoice processing uses software to scan, extract data, and process invoices without human intervention.

• Examples of automated invoice processing software include SAP Ariba, Coupa, and Concur.

Accounts receivable and GST with TDS are interrelated in financial transactions.

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

• GST or Goods and Services Tax is a tax levied on the supply of goods and services.

• TDS or Tax Deducted at Source is a tax that is deducted at the time of payment.

• Accounts receivable and GST are both subject to TDS.

• The TDS rate for accounts receivable and GST may vary depending on the nature of ...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 key component of a company's working capital.

• Accounts receivable is typically recorded as a current asset on the balance sheet.

• Companies often have specific policies and procedures in place for managing accounts receivable, including sending invoices, following up on overdue p...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 for goods or services provided on credit.

• It is considered an asset on the company's balance sheet.

• The goal of managing accounts receivable is to collect payment from customers in a timely manner to ensure steady cash flow.

• Examples include invoices sent to customers for products or ser...read more

Yes, I find the opportunity to join this company feasible.

• I have thoroughly researched the company and its financial stability

• I have spoken with current employees and received positive feedback

• The job responsibilities align with my skills and career goals

• The salary and benefits package is competitive

• The location and commute are manageable

Cash application is the process of recording and applying incoming payments to the correct customer accounts in the accounting system.

• Cash application involves matching received payments to invoices or accounts receivable records.

• It ensures that payments are accurately recorded and applied to the correct customer accounts.

• Automated cash application software can streamline the process and reduce manual errors.

• Reconciling bank statements with cash application records is an impo...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 that customers owe to a company for goods or services purchased on credit.

• It is an important aspect of a company's financial health as it impacts cash flow and overall profitability.

• Monitoring and managing accounts receivable involves tracking payments, following up on overdue invoices, and reconciling discrepancies.

• Ex...read more

OTC cycle refers to the order-to-cash process, which includes accounts receivable. AR specifically focuses on managing outstanding customer invoices.

• OTC cycle involves the entire process from receiving an order to receiving payment.

• AR focuses specifically on managing outstanding customer invoices and collecting payments.

• OTC cycle includes order processing, invoicing, payment processing, and collections.

• AR involves tracking and managing customer payments, resolving payment dis...read more

Inventory refers to the goods and materials a business holds for the purpose of resale or production.

• Inventory includes raw materials, work-in-progress, and finished goods.

• It is an important asset on a company's balance sheet.

• Inventory management involves tracking and controlling the flow of goods.

• Examples of inventory include merchandise in a retail store, components in a manufacturing plant, and supplies in a warehouse.

Omega Health Care Services is a healthcare company that provides medical billing and coding services.

• Offers end-to-end revenue cycle management solutions

• Specializes in medical coding, billing, and collections

• Serves healthcare providers across the United States

• Uses advanced technology to streamline processes and improve accuracy

• Provides customized solutions to meet the unique needs of each client

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

• AR is a key component of a company's working capital

• It represents the amount of money that customers owe to the company

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

• Companies often have an AR department to manage collections and ensure timely payment

• AR can be tracked using aging reports to monitor outstanding balances

AR stands for Accounts Receivable, which refers to the money owed to a company by its customers for goods or services provided on credit.

• AR represents the amount of money that customers owe to a company for goods or services purchased on credit

• It is an important aspect of a company's financial health and cash flow management

• AR is typically recorded as a current asset on the balance sheet until it is collected

• Monitoring and managing AR is crucial for ensuring timely payment an...read more

OTC cycle refers to Order to Cash cycle, which is the process of receiving and processing customer orders to receiving payment.

• OTC cycle involves receiving customer orders, processing them, fulfilling the orders, and receiving payment.

• It includes steps like order entry, order fulfillment, invoicing, and payment collection.

• Efficient OTC cycle management is crucial for maintaining positive cash flow and customer satisfaction.

Invoices are obtained from the system by generating them through the accounting software.

• Invoices can be generated automatically by the system based on sales orders or manually entered by the Accounts Receivable team.

• The system should have a feature to customize and format the invoices according to company standards.

• Invoices should include details such as customer name, billing address, invoice number, date, items/services sold, quantities, prices, and total amount.

• Generated ...read more

Golden rules of accounting are basic principles to maintain financial records accurately.

• The first golden rule is to maintain a record of all transactions.

• The second golden rule is to record all transactions in the correct account.

• The third golden rule is to ensure that the debit and credit amounts are equal.

• For example, if a company purchases inventory on credit, the transaction should be recorded in the accounts payable account with a credit entry and in the inventory accou...read more

B2B invoices are prepared by gathering all necessary information, verifying accuracy, and sending them to clients.

• Gather all relevant information such as client details, invoice number, date, amount, and terms

• Verify accuracy of the information to avoid errors or discrepancies

• Send the prepared invoices to clients through email or mail for prompt payment

• Follow up on overdue invoices to ensure timely payment

Preparing invoices involves compiling and documenting all relevant information for billing customers.

• Gather all necessary information such as products/services provided, quantities, prices, and customer details

• Input the information into the billing system or software

• Double-check for accuracy and completeness before sending the invoice to the customer

• Include any applicable taxes, discounts, or special terms on the invoice

• Send the invoice to the customer through email, mail, or...read more

To further develop my skills in accounts receivable, pursue professional certifications, and eventually move into a management role.

• Obtain professional certifications such as Certified Credit and Risk Analyst (CCRA) or Certified Receivables Manager (CRM)

• Attend industry conferences and workshops to stay updated on best practices in accounts receivable

• Seek opportunities for mentorship and leadership training within the organization

• Work towards improving efficiency and accuracy ...read more