40+ Transaction Processing Associate Interview Questions and Answers

This question is inappropriate and irrelevant to the job role.

• The question is unrelated to the job of a Transaction Processing Associate.

• It is not appropriate to ask personal financial information in an interview.

• The focus should be on the candidate's skills and qualifications for the role.

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

Net profit is the profit after all expenses are deducted. Gross profit is the profit before expenses are deducted. Depreciation is the decrease in value of an asset over time.

• Net profit is calculated by subtracting all expenses from total revenue.

• Gross profit is calculated by subtracting the cost of goods sold from total revenue.

• Depreciation is a non-cash expense that reflects the decrease in value of an asset over time.

• Depreciation is usually calculated using the straight-li...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

The number of hairs on a person's head varies, but on average, it is around 100,000.

• The number of hairs on a person's head can vary depending on factors such as genetics, age, and health.

• On average, adults have around 100,000 hairs on their head.

• Hair loss is a common issue that can affect the number of hairs on the head.

• Hair color and texture can also impact the appearance of hair density.

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

E-commerce transaction process involves the online buying and selling of goods or services.

• E-commerce transactions are conducted electronically over the internet.

• Customers browse products online, add items to their cart, and proceed to checkout.

• Payment is made online using various methods such as credit cards, digital wallets, or bank transfers.

• Once payment is confirmed, the order is processed, and the product is shipped to the customer.

• E-commerce platforms often use secure p...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

SPF PEP are regulations related to anti-money laundering measures.

• SPF stands for Sanctions, Politically Exposed Persons (PEP), and Financial Crime

• PEP refers to individuals who hold prominent public positions or have close associations with such individuals

• Documents required for KYC include government-issued ID, proof of address, and proof of income/employment

• Additional documents may be required for PEPs, such as proof of source of funds and details of business relationships

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.

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

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

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

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

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

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.

Accounts payable is the amount of money a company owes to its vendors or suppliers for goods or services received.

• It is a liability on the company's balance sheet

• It includes invoices that have been received but not yet paid

• It is an important aspect of cash flow management

• Examples include rent, utilities, and inventory purchases

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

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

• Debit what comes in, credit what goes out

• Debit the receiver, credit the giver

• Debit expenses and losses, credit income and gains

Capital markets are financial markets where long-term debt or equity-backed securities are bought and sold.

• Capital markets facilitate the buying and selling of long-term financial instruments such as stocks and bonds.

• They provide a platform for companies and governments to raise funds for projects or operations.

• Investors can trade securities on stock exchanges like NYSE or NASDAQ.

• Capital markets play a crucial role in the economy by allocating capital efficiently.

Defined benefit plans are retirement plans where an employer promises a specified monthly benefit upon retirement.

• Employer bears the investment risk and guarantees a specific benefit amount

• Benefit amount is usually based on salary and years of service

• Common examples include pension plans offered by government agencies and large corporations

Investment banking involves providing financial services to corporations, governments, and other institutions.

• Helps companies raise capital through issuing stocks and bonds

• Provides advisory services for mergers and acquisitions

• Assists with restructuring and reorganizing companies

• Offers trading and market-making services

• Examples include Goldman Sachs, J.P. Morgan, and Morgan Stanley

I have a Bachelor's degree in Business Administration with a focus on finance.

• Bachelor's degree in Business Administration

• Focus on finance

• Relevant coursework in transaction processing

I have a strong background in transaction processing and data entry.

• Worked as a Transaction Processing Associate at XYZ Company for 2 years

• Proficient in using various software for data entry and processing

• Managed large volumes of transactions accurately and efficiently

An invoice is a document that lists the goods or services provided by a seller and the amount owed by the buyer.

• An invoice is a bill for goods or services provided by a seller to a buyer.

• It includes details such as the quantity, price, and description of the goods or services.

• Invoices are used to request payment from the buyer and serve as a record of the transaction.

• Examples of invoices include bills from utility companies, invoices from suppliers, and receipts from online p...read more

Retirement plans are financial arrangements designed to provide individuals with a source of income during retirement.

• Retirement plans can include employer-sponsored plans like 401(k) or pension plans, as well as individual retirement accounts (IRAs).

• Contributions to retirement plans are often tax-deferred, meaning individuals do not pay taxes on the money they contribute until they withdraw it during retirement.

• Retirement plans typically have rules regarding when and how ind...read more

Transaction refers to the exchange of goods, services or money between two or more parties.

• Transactions involve a transfer of value from one party to another.

• They can be conducted in various forms such as cash, credit card, online payment, etc.

• Transactions can be simple or complex depending on the nature of the exchange.

• They are recorded for future reference and analysis.

• Examples include buying groceries, paying bills, transferring money, etc.

Assets are resources owned by a company or individual that have economic value.

• Assets can include cash, investments, property, equipment, and inventory.

• Assets are typically listed on a company's balance sheet.

• Assets can be classified as current assets (e.g. cash and inventory) or non-current assets (e.g. property and equipment).

HIPAA law is a federal law that protects the privacy and security of patients' medical information.

• HIPAA stands for Health Insurance Portability and Accountability Act

• It sets standards for the protection of sensitive patient data

• HIPAA applies to healthcare providers, health plans, and healthcare clearinghouses

• Violations of HIPAA can result in significant fines and penalties

Insurance is a financial product that provides protection against potential financial losses.

• Insurance is a contract between an individual or organization and an insurance company.

• The individual or organization pays a premium in exchange for coverage against specific risks.

• Common types of insurance include health insurance, auto insurance, life insurance, and property insurance.

• Insurance helps individuals and organizations manage risk and protect themselves financially.

• Insura...read more

Withdrawal is the act of taking money out of an account or the symptoms experienced when stopping the use of a substance.

• Withdrawal in banking refers to taking money out of an account, either through an ATM, bank teller, or other means

• Withdrawal in substance abuse refers to the physical and mental symptoms experienced when a person stops using a drug or alcohol

• Examples of withdrawal symptoms include nausea, sweating, anxiety, and cravings

Different types of accounts include savings accounts, checking accounts, investment accounts, and retirement accounts.

• Savings accounts are used to save money and typically earn interest.

• Checking accounts are used for everyday transactions and often come with a debit card.

• Investment accounts are used to invest in stocks, bonds, and other securities.

• Retirement accounts, such as 401(k) or IRA, are designed to save for retirement and offer tax advantages.

Golden rules in accounting are basic principles that guide the process of recording financial transactions.

• There are three golden rules in accounting: 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, the cash account is debited (increased) an...read more

OTC stands for Over-the-Counter, referring to the process of trading financial instruments directly between two parties without the need for a centralized exchange.

• OTC transactions are conducted directly between buyers and sellers, without the need for a centralized exchange.

• OTC markets are decentralized and allow for more flexibility in terms of pricing and negotiation.

• Common examples of OTC instruments include stocks, bonds, derivatives, and foreign exchange.

• OTC trades are ...read more

P2P (Procure-to-Pay) is the process of obtaining and paying for goods and services from suppliers.

• The process starts with identifying the need for a product or service.

• Next, a purchase order is created and sent to the supplier.

• Upon receiving the goods or services, an invoice is generated by the supplier.

• The invoice is matched with the purchase order and goods receipt.

• Finally, payment is made to the supplier.

• Example: Company A needs to purchase office supplies. They create a p...read more

I am currently earning a CTC of $50,000 per year at my last company.

• My last company CTC was $50,000 per year

• I am currently earning $50,000 per year at my previous job