50+ Transaction Processing Associate Interview Questions and Answers

Key points to notice during invoice processing

• Accuracy of invoice details

• Matching invoice with purchase order and receipt

• Checking for duplicate invoices

• Verifying payment terms and discounts

• Ensuring proper coding and approval

• Identifying any discrepancies or errors

• Maintaining proper documentation and record keeping

Credit cards allow you to borrow money while debit cards use your own funds.

• Credit cards have a credit limit while debit cards have a balance limit

• Credit cards charge interest on unpaid balances while debit cards do not

• Credit cards offer rewards and cashback while debit cards do not always offer these benefits

• Credit cards can help build credit history while debit cards do not affect credit score

Transaction Monitoring Analyst monitors financial transactions for potential fraud and suspicious activity.

• Review and analyze transactions for potential fraud or suspicious activity

• Identify and investigate any anomalies or red flags

• Communicate findings to management and other relevant parties

• Maintain accurate records and documentation

• Stay up-to-date on industry regulations and best practices

• Collaborate with other departments to improve transaction monitoring processes

Insurance is a contract between a policyholder and an insurer to provide financial protection against specified risks. Claims are requests made by policyholders to receive benefits from their insurance policies.

• Insurance is a risk management tool that helps individuals and businesses protect themselves against potential financial losses.

• There are various types of insurance such as life insurance, health insurance, auto insurance, property insurance, and liability insurance.

• Cl...read more

Vlookup is a function used to search for a value in a table and return a corresponding value from another column.

• Vlookup stands for vertical lookup.

• It is commonly used to find and retrieve data from a large dataset.

• It requires a lookup value, a table range, and a column index number.

• Example: =VLOOKUP(A2, B2:D10, 3, FALSE) will search for the value in A2 within the range B2:D10 and return the value from the third column.

• Hookup is not a recognized term in Excel.

• Pivot table is a...read more

Banking involves financial transactions, loans, investments, and other financial services.

• Banks accept deposits from customers and use that money to make loans to other customers.

• They offer various types of accounts such as savings, checking, and money market accounts.

• Banks also provide services such as credit cards, mortgages, and investment opportunities.

• They are regulated by government agencies such as the Federal Reserve and FDIC.

• Examples of banks include JPMorgan Chase, ...read more

Final account and balance sheet are financial statements used to summarize a company's financial position.

• Final account is a statement of all the accounts in a ledger, showing the balances of each account.

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

• Final account is prepared before the balance sheet.

• Balance sheet is prepared after the final account.

• Final account is used to prepare the balance sheet.

• B...read more

The amount of money needed to buy food varies depending on various factors.

• The cost of food depends on the type of food, location, and personal dietary preferences.

• Factors such as inflation, seasonality, and availability of certain ingredients can also affect the cost.

• Individuals with dietary restrictions or special dietary needs may require more money to buy specific food items.

• The number of people to be fed and the frequency of meals also impact the overall cost.

• Food prices...read more

Journal posting for a credit purchase with a 10% discount involves recording the transaction accurately in the accounting system.

• Identify the total purchase amount before discount.

• Calculate the discount: Total Amount x 10%.

• Subtract the discount from the total amount to get the net payable.

• Record the journal entry: Debit Inventory/Expense and Credit Accounts Payable.

• Example: If the item costs $100, discount is $10, net payable is $90.

Yes

• Yes, I am able to manage tying my shoes.

• I have been tying my shoes since childhood and it is a basic skill I possess.

• I can tie different types of knots, such as the standard bow knot or a double knot.

• I am comfortable tying shoes with different types of laces, including round, flat, or elastic laces.

T-codes are transaction codes used in SAP to perform specific tasks. Variance and layout can be created using SAP's customization tools. Data can be exported from SAP using various methods.

• T-codes are shortcuts to perform specific tasks in SAP

• Variance and layout can be created using SAP's customization tools like SAP GUI

• Data can be exported from SAP using various methods like SAP GUI, ABAP programs, or SAP Data Services

• To create variance, go to transaction code KE4S and selec...read more

The current Finance Minister of India is Nirmala Sitharaman who introduced new tax regimes in the Union Budget 2020.

• Nirmala Sitharaman is the Finance Minister of India.

• She introduced new tax regimes in the Union Budget 2020.

• The new tax regimes include optional tax slabs with reduced rates for individuals and HUFs.

My passion for finance and desire to impact businesses motivated my choice of investment banking as a career path.

• Strong interest in financial markets and their dynamics, inspired by reading books like 'The Intelligent Investor'.

• Desire to work in a fast-paced environment where I can solve complex financial problems, similar to my experience in a finance internship.

• Aspiration to help companies grow and succeed through strategic financial advice, as seen in case studies of succ...read more

Investment banking involves helping companies and governments raise capital by underwriting and selling securities.

• Investment banks provide financial advisory services to clients

• They help clients raise capital by underwriting and selling securities

• Top investment banks include Goldman Sachs, JPMorgan Chase, and Morgan Stanley

I am highly adaptable and open to relocation and flexible shift timings to meet the needs of the organization.

• I have previously relocated for a job opportunity, which helped me grow both personally and professionally.

• I understand that shift timings can vary, and I am willing to adjust my schedule to ensure smooth operations.

• In my last role, I worked night shifts for several months, which taught me to manage my time effectively.

• I believe that being adaptable is crucial in toda...read more

Trade life cycle refers to the stages involved in a trade from initiation to settlement.

• The trade life cycle includes trade initiation, trade execution, trade confirmation, trade settlement, and trade reconciliation.

• Back office operations involve trade settlement, which includes matching trade details, ensuring proper documentation, and processing payments.

• Trade settlement involves communication between various parties such as brokers, custodians, and clearing houses.

• Errors i...read more

Amortization is the process of spreading out a loan or debt over a period of time with regular payments.

• It is a method of paying off a debt over a fixed period of time

• It involves making regular payments that include both principal and interest

• The payments are calculated based on the loan amount, interest rate, and repayment period

• Examples include mortgage loans, car loans, and student loans

Level 1 transaction monitoring was performed.

• Monitoring of basic transactions for compliance and fraud detection

• Identifying and investigating suspicious activities

• Escalating flagged transactions for further review

• Ensuring adherence to regulatory requirements

• Examples: monitoring credit card transactions for unusual spending patterns, detecting potential money laundering activities

Yes, I am comfortable with working flexible timings to accommodate the needs of the job.

• I am willing to work evenings, weekends, or holidays if required

• I can adjust my schedule to meet deadlines or handle unexpected workloads

• I have previous experience working flexible hours in my previous job

OTC is important in logistics business as it helps in managing inventory, reducing costs, and improving customer satisfaction.

• OTC helps in managing inventory by ensuring timely delivery of goods to customers.

• OTC reduces costs by streamlining the order fulfillment process and minimizing errors.

• OTC improves customer satisfaction by providing real-time visibility into order status and tracking.

• OTC enables faster order processing and fulfillment, leading to quicker delivery times...read more

Three way match is a process of matching the purchase order, goods receipt, and invoice to ensure accuracy and prevent fraud.

• It involves comparing the purchase order with the goods receipt to ensure the correct items and quantities were received.

• Then, the invoice is compared to the purchase order and goods receipt to ensure the correct prices and terms were applied.

• If all three documents match, the invoice can be approved for payment.

• Examples include verifying that the quanti...read more

AML stands for Anti-Money Laundering. It is a set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.

• AML is used in financial institutions to detect and prevent money laundering activities.

• It involves identifying and verifying the identity of customers, monitoring transactions, and reporting suspicious activities.

• Examples of suspicious activities include large cash deposits, frequent international t...read more

Accrual is the recognition of revenue or expenses that have been earned or incurred but not yet received or paid. Prepaid is the recognition of payment for goods or services that have not yet been received or used.

• Accrual is used to match revenue and expenses to the period in which they were earned or incurred

• Prepaid is used to recognize payment for goods or services that have not yet been received or used

• Accrual and prepaid are both important concepts in accounting and finan...read more

B2B process refers to business-to-business transactions where companies sell products or services to other companies.

• B2B process involves transactions between two businesses rather than between a business and a consumer.

• It often includes bulk orders, negotiated pricing, and long-term contracts.

• Examples of B2B processes include wholesale transactions between manufacturers and retailers, or software licensing agreements between technology companies.

I admire your company's commitment to innovation and excellence in transaction processing, which aligns with my career goals and values.

• Your company is a leader in transaction processing technology, which excites me as I want to work with cutting-edge solutions.

• I appreciate your focus on customer satisfaction and efficiency, as seen in your recent project that reduced transaction times by 30%.

• The collaborative work culture here is appealing; I thrive in environments where tea...read more

Customer data management involves collecting, organizing, and analyzing customer information to improve customer service and marketing strategies.

• Collecting and storing customer information securely

• Organizing data for easy access and analysis

• Analyzing data to understand customer behavior and preferences

• Using data to personalize customer interactions and improve customer satisfaction

• Ensuring compliance with data protection regulations such as GDPR

Business process outsourcing is when a company contracts out specific business tasks to a third-party provider.

• Companies outsource tasks like customer service, payroll processing, and IT services to save costs and improve efficiency.

• Outsourcing can be done domestically or internationally, depending on the company's needs and budget.

• Popular outsourcing destinations include India, the Philippines, and Eastern Europe.

• Outsourcing allows companies to focus on their core competenci...read more