41⟩ Tell me when do you capitalize rather than expense a purchase?
If the purchase will be used in the business for more than one year, it is capitalized and depreciated.
Accounts Receivable Clerk
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“Account Receivable Clerk related Frequently Asked Questions by expert members with professional career as Accounts Receivable Clerk. These list of interview questions and answers will help you strengthen your technical skills, prepare for the new job interview and quickly revise your concepts”
75 Accounts Receivable Clerk Questions And Answers
42⟩ How Much Time Needs To Pass For An A/r Account To Be Considered Delinquent?
After 90 days of the due date.
43⟩ Tell us how Important Does Accounts Receivable For Small Business And Why?
Accounts Receivables help small businesses by providing short-term liquidity. Also continued sales on credit provide the much needed continuity for small businesses.
44⟩ If cash collected from customers is not recorded as revenue, what happens to it?
It usually goes into “Deferred Revenue” on the balance sheet.
45⟩ Explain what was your average accounts receivable days outstanding?
If relevant, discuss any corrective action taken to reduce this figure.
46⟩ Tell me how do you manage cross-functional teams?
By organizational and planning achieving goals and objectives also to have ability in solving problems .
47⟩ Do you know under what circumstances does goodwill increase?
When a company buys another business for more than the fair value of its tangible and intangible assets.
48⟩ Tell me after Reeving Payment From Customer, What Is Next Step Till Finalization?
The next step would be adjusting receipt from customer against the customer outstanding with sale and to clear the customer account.
49⟩ Explain how do you handle insufficient funds received from a customer?
We will make sure that we call the customer and let them know. Sometimes it might be a mistake. Send the letter including the payment request and fine for bad check.
50⟩ Explain me why is it so important to be technically savvy at this position?
Every accounting procedure is not computerized. It is important to be technically savvy so that you can keep up with the times. And also because being technically savvy means that you can complete your work in half the time that it will take you to do it manually.
51⟩ Tell me what Is The Difference Between Debenture Holders And Creditors?
Debenture holder are those who provides long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods.
52⟩ Tell us what usually gets your number one priority in a typical day?
The work which needs most priority. I read emails even how busy I am. Because customer or manager anyone would have tried to reach me.
53⟩ Explain me what is your personal method for keeping organized?
Every week on monday I check the emails I receive and other pending jobs if any, On tuesday I make sure that I put my effort on user guide preparation and works in excel and access. Wednesday I would do my day to day work and I attend meetings if any. Thursday I make sure all Invoices have been noted down for that week and friday I make sure that all works are done for that week and no important assignments that are pending.
54⟩ What Is Customer Master Record?
A Customer Master Record is a permanent record that contains key information about a business partner or a material. This information must be entered into the system before any transactions can take place involving the business partner [customer] or a material.
Entering all the information about a customer or a material into the system b efore making transactions insures that subsequent transactions or inquiries will have consistent data and reports and analyses can be done in an orderly way.
Master Records can be edited or changed when necessary. Changing master records is frequently called "Maintaining" in SAP
55⟩ Explain me your responsibilities in accounts receivable?
Discuss all your responsibilities. Focus on the skills and knowledge you used to perform these functions efficiently such as maintaining a high level of accuracy, good verbal and written communication skills, strong organizational skills, problem-solving skills, computer skills and a knowledge of accounting processes.
56⟩ Explain what Is Reconciliation Statement And Investment Banking?
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 issuing IPO stocks bond etc.
57⟩ Explain The Components Or Materials Used By Accounts Receivable Departments?
Accounts Receivable department is very important department of the company. The responsbilities of the department is approval of credit limit to the customer study the past history of customer credit sending invoices to the customer updation of the customer credit data factoring contacts with the factoring agents follow up of customers motivating the customers to pay the dues intime and communicating the information to the management.
Credit sales data estimation of credit sales for the future period request for funds to finance department whenever they required follow up of customers receivables management.
58⟩ Tell us how does an inventory write down affect the three statements?
On the balance sheet the asset account of Inventory is reduced by the amount of the write down, and so is shareholders’ equity. The income statement is hit with an expense in either COGS or a separate line item for the amount of the write down, reducing net income. On the cash flow statement, the write down is added back to CFO as it’s a non-cash expense but must not be double counted in the changes of non-cash working capital.
59⟩ What Is Brs?
BRS - Bank Reconciliation Statement
A bank reconciliation statement is a statement prepared by organizations to reconcile the balance of cash at bank in a company's own records with the bank statement on a particular date.
The differences may arise because of the following reasons:
☛ Cheques deposited into bank but not yet collected by bank
☛ Cheques issued by the organization but not yet presented for payment
☛ Cheques directly deposited by customers into the bank
☛ Bank charges debited by bank
☛ Interest credited or some receipts directly collected by bank based on org. request.
☛ Some payments directly made by bank based on the organizations request.
☛ So, the statement shows the reasons as what are the reasons for difference in balance.
60⟩ What does negative working capital mean?
Negative working capital is common in some industries such as grocery retail and the restaurant business. For a grocery store, customers pay upfront, inventory moves relatively quickly but suppliers often give 30 days (or more) credit. This means that the company receives cash from customers before it needs the cash to pay suppliers. Negative working capital is a sign of efficiency in businesses with low inventory and accounts receivable. In other industries, negative working capital may signal a company is facing financial trouble.
