Book Keeper Interview Questions and Answers

Yes, AP process refers to accounts payable process which involves managing and recording financial transactions.

• AP process involves receiving, verifying, and recording invoices from suppliers.

• It also includes making payments to suppliers and reconciling accounts.

• Efficient AP process helps in maintaining good relationships with suppliers and managing cash flow effectively.

A balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

• List all assets (cash, accounts receivable, inventory, etc.) and their values

• List all liabilities (accounts payable, loans, etc.) and their values

• Calculate equity by subtracting liabilities from assets

• Ensure assets = liabilities + equity

Preparing profit and loss involves calculating the difference between revenue and expenses to determine the financial performance of a business.

• Calculate total revenue by adding up all income sources

• Calculate total expenses by adding up all costs incurred

• Subtract total expenses from total revenue to get the profit or loss

• Review the profit and loss statement for insights into the financial health of the business

Pre-paid expense journal entry involves recording an expense that has been paid for in advance.

• Pre-paid expenses are initially recorded as assets on the balance sheet

• As the expense is incurred, it is gradually expensed through the income statement

• Journal entry involves debiting Prepaid Expense account and crediting Cash or Bank account