This Accounts Payable Clerk interview profile brings together a snapshot of what to look for in candidates with a balanced sample of suitable interview questions.
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13 accounts payable interview questions and answers related to technical definitions
Let’s now look at 13 accounts payable interview questions to test your candidates’ knowledge of essential technical terms.
WCC means “working capital cycle.” It refers to the length of time taken for the net current assets of a company to convert into cash. A long cycle means an enterprise takes a long time to tie up capital without a return.
Organizations should look to keep the working capital cycle short, freeing up cash and increasing a company’s agility.
What does “debit balance” mean?
A debit balance is what a customer who has borrowed funds to buy securities owes to a broker or other lender. The term “debit balance” specifically refers to the total amount of money clients or customers need in their accounts after buying the security so that the transaction can take place without any problems.
Which information must you have for invoice approval for payments?
Candidates should respond by identifying a few of the critical factors and bits of information essential for invoice approval. For instance, they should know that checking if the goods or services have been acknowledged is vital, and they should note that verifying the amount is essential. They may also mention that checking whether the organization has been expecting a reduction in cost is important.
What are the advantages of liquid financial assets?
A company can convert liquid financial assets into cash quickly and easily. The value of some liquid assets may even appreciate over time.
Make sure that you are interviewing the best accounts payable clerks. Sign up for Workables 15-day free trial to hire better, faster.
This Accounts Payable Clerk interview profile brings together a snapshot of what to look for in candidates with a balanced sample of suitable interview questions.
Explain the difference between credit and debit.
Credit refers to an entry in accounts that increases equity or liability accounts and decreases an expense or asset account. Meanwhile, debit refers to an entry in accounts that decreases equity or liability accounts and increases expense or asset accounts.
Any transaction will typically affect two accounts. Whereas one account will record a debit, the other will register a credit entry. Credits and debits should always be the same, keeping the transaction in balance. Therefore, debits and credits are critical for maintaining balance for accounting transactions.
Explain what a balance sheet is.
Balance sheets are financial documents that show a business’s assets, shareholder equity, and liabilities. Investors use them to compute rates of return and assess the capital structure of an organization.
A balance sheet offers clients or investors an overview of the amount owed by a company and the amount the company is owed. Clients can also use them to analyze an organization’s financial ratios.
Explain what “wire transfer” means in the accounts field.
A wire transfer refers to the process of electronically transferring funds from one person or organization to another. The process is administered by banks or agencies that specialize in administering wire transfers.
TDS means “tax deducted at source.” It refers to the process of deducting tax at the source when a deductor must make a payment to a deductee, and the balance will be transferred to the deductee. The deductible amount remains with the government.
An AIS is an accounting information system. The term refers to a structural process that businesses use to compile and store, manage and process, and then report the organization’s financial data. Accountants, business analysts, chief financial officers, and managers use AISs to ensure accurate financial reporting.