Accounts Receivables Interview Questions

BRS is a find out the uncommon adjustments of cashbook and pass book.

Bank reconciliation means comparison between bank pass book and company pass book.

As far as I understand cash application is nothing but cash allocation. when we receive the amount from customers on the invoices which are due from them we do cash allocation (meaning we clear the paid invoices from our system). it comes into picture when we receive cash from customers.

Managing customers payment exceptions.

back end collections means like commission on sales or commission on providing services
front end collections means like sales and providing services

Amount or income already received in advance will be construed as deferred revenue and entries are as follows: 1) When receipt of advance: Bank A/c Dr To Unearned revenue A/c 2)...

What is your process in adjusting the amount of advance already received against an invoice?

When an invoice is generated and sent to the client/customer, the JE to be passed is debit customer account and credit revenue/accounts receivable account. When payment is received from customer, then debit bank account and credit the customer account concerned

The objective of managing accounts receivable is to have both the optimal amount of receivables outstanding and the optimal amount of bad debts. a. This balance requires a trade-off between the benefi...

Credit Management is the process of managing the outstanding receivables of the organistion as per the policies adopted by the organisation. Companies might the approach of categorising the B/R by the...

Contribution margin is the difference between the selling price and variable cost per unit or in total for the level of activity. Contribution margin is the amount of each revenue dollar remaining to pay fixed costs and provide a profit after variable costs are covered.

Contribution is nothing but your fixed expenses (Business),the total Equation is--your total expenses will be divided into two category. 1) FC (Fixed Cost) 2) VC Variable cost, Fixed Cost-:fixed cos...

The main target of analysing AR account is to decrease the aging outstanding at the most and should always scrutinize the aging often as sometimes credit lies somewhere and debit lies somewhere (specially in advance cases).

Always we should look for corresponding debit/credit entries. 

Credit Limit:- Use below mentioned information/data to calculate Credit capacity.
Salary
Credit Card
Number of Years of Experience
Credit Balance
Liquid Assets
Movable and Non-Movable property

Yes, we have to face so many disputes after generating the invoice such as weight,rate difference.. then we ask to raise a debit note to party so that we can check the errors and issue a credit note to solve the discrepancy in the invoice

heavy advertisement expense is the best example of deferred revenue expenditure. it have both quality of revenue and capital so its also called capital expenditure

It is an expenditure the benefit of which will be realised over a period and not during the current period.Ex-Heavy Advertisement expenditure incurred by the company for promoting the product.The...

Not shipped

delivered

If AR update process has been not done and apply Payment has been not done for the Customer you can adjust the Amount in AR itself. Else if the AR update process has been not done and apply Payment h...

By posting following entry

Customer Deposit A/c Dr (with Remaining amount)
To Cash or Bank A/c (with Remaining amount)

Bank reconciliation statement explains the difference between the two balances in the cash book and pass book.which should be same in both books.BRS match the balance of the cash book and the bank pass book.

Bank reconciliation statement is a statement of showing details of difference between the bank balance and book balance of bank account. It is prepare because a banking transaction is recorded at diff...

PO Number, Invoice Number, curr, amount, description of the charges, date of invoie, billing address.

DATE OF PURCHASE an item no

Stale check is voided and New check is issued.

In the books of chq received company Bank A/c Dr To Customer A/c Being chq received from customer t/w ............ In case they are not chased before 6 months the chq is not valued he passed rev...

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 a...

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 ...

considered as bad debt and should be written off after the set time

In the books of company A
Company B A/c .........Dr 1000
To Cash/ Bank A/c 1000

In the books of company B
Cash / Bank A/c ......Dr 1000
To Company A A/c 1000

in the books of A

B A/c. Dr.
to Cash A/c.

In the books of B

Cash A/c. Dr.
to A A/c.

Journal Entries are recorded on a double entry system, ie debit and credit concept. In order to record a journal entry, the following steps need to be followed.Enter the Journal entry numberEnter the ...

A journal entry is recorded accourding to the rules of debit and credit.for example goods sold for Rs 50000 for cash ----to record this -- identify the accounts involved-- i.e.goods A/cand Cash A...