Category Archives: Accounts Receivable Interview Questions

Explain What is factoring? | Accounts Receivable Questions

Selling the rights to the amounts owing by debtors to a finance company for an agreed amount (which is less than the figure at which they are recorded in the accounting books because the finance company needs to be paid … Continue reading

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To what extent were you involved in collections? | Accounts Receivable Questions

Collection involves calling the customers for past due and this kind of question has to logically answered.

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You have been asked to prepare a bill for services. What information should be included in the bill? | Accounts Receivable Questions

Service Provider’s Details (i.e) Organations name and address. Service Receiver’s Details (i.e) Organations name and address. Details of the service (i.e) for eg: Advertisement charges/Dying charges Tax (i.e) Service Tax on total chargable amount and cess or sur-charge on service … Continue reading

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What is the difference between finance and accounts? most of the companies having a different section like finance and accounts. why they are not had only single section neither finance nor accounts? | Accounts Receivable Questions

Finance:It is the branch of economics that studies the management of money and other assets.In simpler terms it can be defined as the commercial activity of providing funds and capital.It addresses questions like — what funds are required by the … Continue reading

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What is reconciliation? | Accounts Receivable Questions

You should have recorded in your cash books all amounts you ve actually received and payments you ve actually made. However the cash books may be incomplete as your bank may have put extra transactions through your account such as: … Continue reading

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Which type of assets should be capitalized and when expense out? | Accounts Receivable Questions Which type of assets expense out or when?

Assets are things which is provide service for long duration it may 3 years 4 years or for long period of time. These items capitalize in our account books and charge depreciation in every year according to these rate it … Continue reading

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What is the Auto Invoice? What are the setup Steps for Auto Invoice? | Accounts Receivable Questions

A powerful tool to import and validate transaction data from other financial systems and create invoices debit memos credit memos and on-account credits Setup steps: Define the line ordering rules define the grouping rules – attache the line ordering rules … Continue reading

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What is the table that is used for aging bucket report, what is the main purpose of this report? | Accounts Receivable Questions

Time periods you define to age your debit items. Aging buckets are used in the Aging reports to see both current and outstanding debit items. For example you can define an aging bucket that includes all debit items that are … Continue reading

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What is reconciliation statement and investment banking? | Accounts Receivable Questions

Reconciliation statement is formerly known as a tool which is used to reconcile the bank passbook and our passbook. Investment banking is a is a instrument which is used by the financial organization to take a better investment decision like … Continue reading

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What are the three golden rules of accounts? | Accounts Receivable Questions

Personal accounts –> Debit the benefit receiver, credit the benefit giver Real accounts –> Debit what comes in, credit what goes out Nominal Accounts –> Debit all expenses and losses, credit all incomes and gains.

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