Accounts Receivable Clerk Interview Preparation Guide
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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:

1 :: Tell us what do you classify as “day to day financial transactions”?

Verifying, classifying, computing, recording and posting accounts receivable data in pre-designated accounting software is considered day to day financial transactions.

2 :: What is the accounts payable cycle?

Demonstrate your knowledge of this cycle - the length of time it takes the company to pay its accounts payable - and what the implications of the length of this cycle are for the company, for example cash flow.

3 :: How Is A Journal Entry Recorded?

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 number.
☛ Enter the Date of transaction.
☛ Enter the Debit item (as per the golden principles of accountancy).
☛ Enter the corresponding GL folio number.
☛ Enter the Debit amount.
☛ Enter the credit item(as per the golden principles of accountancy).
☛ Enter the amount in the credit column.
☛ Provide a brief description of the transaction.
☛ leave a single line before next transaction.

4 :: Tell me what Is Reconciliation?

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:

☛ bank fees or interest charges.
☛ direct debits (payments) and direct credits (receipts).
☛ Doing a regular bank reconciliation will allow you to:

take into account any extra transactions your bank puts through your account and
check and record any errors or omissions.
By regularly doing a bank reconciliation (say monthly) you can be more confident that your records contain all the information you need to prepare your income tax return and activity statements.

5 :: What’s the difference between deferred revenue and accounts receivable?

Deferred revenue represents cash received customers for services or goods not yet provided. Accounts receivable represents cash owing from customers for goods/services already provided.

7 :: Tell me what assignment was too difficult for you? How did you resolve the issue?

I had to prepare a excel spreadsheet for all the products, vendors list, employee list and other calculations using formulas in a very small amount of time. I managed it in a good way that we changed it completely to a software based accounting.

8 :: Tell us how would you handle a customer that is 14 days past due?

Sorry we did not update in the first place. We were really busy and couldnt get to the task. We are working on it at this moment. We will deliver it as soon as possible.

9 :: Explain what Is Evaluated Receipt Settlement?

ERS is a business process between trading partners that conduct commerce without invoices. In an ERS transaction the supplier ships goods based upon an Advance Shipping Notice (ASN) and the purchaser upon receipt confirms the existence of a corresponding purchase order or contract verifies the identity and quantity of the goods and then pays the supplier.

10 :: Tell me what Are Derivatives?

Derivative instrument is an asset which derives ie, takes its origin from another asset.

The simplest form of derivative is a forward contract, "It is an agreement to buy or sell an asset at a certain future time for a certain price"Other forms of of derivatives include futures,options and swaps, etc.

11 :: Tell me how Debtors Play Its Role In Accounts Receivable?

Debtors are the main role of the business. he is the entire back bone of the business. The goodwill of the concern is in the hands of debtors because he is the person who takes our product or raw material to the customer or manufacture. so he is takes the main role in the business in finance and business development.

12 :: Tell me what Is The Auto Invoice? What Are The Setup Steps For Auto Invoice?

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 to the grouping rules.

13 :: Tell me to What Extent Were You Involved In Collections?

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

14 :: Define Inter Company Transaction In Account Receivable?

Intercompany transactions are those transactions that takes place between two or more entities of the same group of company. So the receivable of one entity would the payable of another entity. All intercompany transactions are eliminated befor preparing the final Balance sheet of the group company.

15 :: Tell me what do you consider the most important goals of accounts receivable?

These goals will depend on the needs of the organization. Show how you are aware of organizational needs and then identify the appropriate goals to meet them. Demonstrate a thorough understanding of what the goals express and how they support department and company objectives. Common aspects include positively impacting on company cash cycle, increasing cash flow, reducing DSO, reducing bad debt and write offs.

16 :: Tell us what accounts payable applications are your familiar with?

With accounting job interview questions like this first list the applications you have used and then expand on the value of the solutions they offered to your particular business. Look at aspects such as managing vendor information, approval controls and providing payables reports.

17 :: Tell me what makes you feel that you are a good contender for an accounts receivable clerk position?

I am a detail-oriented and exceptionally organized individual who has had 6 years of accounts receivable experience. Working with numbers comes naturally to me and I am quite eloquent when it comes to making complex calculations. Additionally, I am deeply familiar with bookkeeping procedures and payroll functions, which make me an excellent choice to work at this position.

18 :: Please explain have you ever been involved in an invoice dispute? How did you manage the problem?

Accounting job interview questions like this explore your conflict management skills. Emphasize your interpersonal skills, your maturity and your ability to stay calm in the face of difficulty. Describe the techniques you use to diffuse disputes such as asking questions to determine the reason for the dispute, not conveying blame and not becoming too emotional. Demonstrate your ability to work together with others to reach an acceptable resolution.

19 :: How We Are Going To Close Ar Periods?where We Are Going To Use Accounting Rules What Are The Setups For That?know We Are Having 100 Transactions In Ar. Know We Want To Close 50 Transactions How?

Review balances and reconcile the AR transactions i.e

☛ Reconcile receipts.
☛ Reconcile journals.
☛ Reconcile transactions.
☛ Reconcile customer balances.
☛ Reconcile transactions and receipts.
☛ Reconcile outstanding customer balances i.e.
☛ Opening balance + Transactions - Receipts Closing balance.
☛ Reconcile transaction and receipt accounting flexfield balances.
☛ Transfer to GL.
☛ Review transfers results and resolve transfer issues if any.
☛ Post the journal in GL.
☛ Close the GL period.

20 :: Tell me what Is The Table That Is Used For Aging Bucket Report, What Is The Main Purpose Of This Report?

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 1 to 30 days past due.

Normal table used for this Report is < 30 days 30-60 days 60-90 days 90-180 days and >180 days