Transaction Processing new Associate Interview Questions and Answers

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.

• Accounting involves recording financial transactions such as sales, purchases, and payments.

• These transactions are then classified into different categories such as assets, liabilities, and equity.

• The information is then summarized in financial statements such as the balance sheet, income statement, and cash flow statem...read more

Accrued income journal records revenue earned but not yet received.

• Accrued income is recorded as a debit to an accrued income account and a credit to the revenue account.

• When the income is received, the accrued income account is debited and the revenue account is credited.

• Example: Debit Accrued Income $1,000, Credit Revenue $1,000.

• Example: Debit Revenue $1,000, Credit Accrued Income $1,000.

AP stands for Accounts Payable, which is the department responsible for processing invoices and making payments to vendors. P2P stands for Procure-to-Pay, which is the entire process from requisitioning goods to making payment.

• AP involves receiving, verifying, and processing invoices for payment

• P2P encompasses the entire procurement process from requisition to payment

• AP ensures that vendors are paid accurately and on time

• P2P streamlines the entire procurement process for effi...read more