Finance & Admin Business Analyst Interview Questions and Answers

An invoice is a bill for goods or services provided, while a credit note is a document issued to reduce the amount owed on an invoice.

• An invoice is issued when goods or services are sold or provided to a customer.

• An invoice shows the amount owed by the customer to the seller or service provider.

• A credit note is issued when there is a need to reduce the amount owed on an invoice.

• A credit note can be issued for various reasons, such as returns, discounts, or errors in the origi...read more

The three golden rules are basic principles in accounting that guide the recording of financial transactions.

• The first golden rule is the rule of personal accounts, which states that 'Debit the receiver, credit the giver'. For example, when cash is received from a customer, the cash account is debited and the customer's account is credited.

• The second golden rule is the rule of real accounts, which states that 'Debit what comes in, credit what goes out'. For example, when good...read more

Debit note and credit note are documents used in accounting to record adjustments made to a transaction.

• Debit note is issued when a buyer returns goods to a seller or when there is an overcharge in the invoice.

• Credit note is issued when a seller returns goods to a buyer or when there is an undercharge in the invoice.

• Debit note increases the buyer's account balance while credit note decreases it.

• Credit note increases the seller's account balance while debit note decreases it.

• B...read more

Accounts payable refers to the amount of money a company owes to its suppliers or vendors for goods or services received but not yet paid for.

• Accounts payable is a liability on the company's balance sheet.

• It represents the short-term debt owed by the company.

• It includes invoices from suppliers, utility bills, and other expenses.

• Accounts payable is typically recorded as a current liability.

• It is an important aspect of cash flow management and working capital.

• Companies often ha...read more

PO stands for Purchase Order and Non-PO refers to transactions that do not require a purchase order.

• PO is a document that is issued by a buyer to a seller to initiate a purchase transaction.

• Non-PO transactions are usually smaller purchases that do not require a formal purchase order.

• PO transactions are typically more formal and involve a longer process of approval and documentation.

• Non-PO transactions are usually approved more quickly and involve less paperwork.

• Examples of PO...read more