Top 15+ Accounts Payable Interview Questions and Answers for 2023.
To ensure a better relationship with the vendors it is important to have better accounts payable management in accounting for any business. It also helps the businesses to maintain a proper cash flow management in the business. However, many businesses struggle to achieve a proper accounts payable system. Here, it becomes important to hire an expert accounts payable in-house employee or outsource it to an agency that has good expertise in accounts payables. So, if you are operating a business in the UK and need experts through either way then you have to take a proper Accounts Payable Interview for it. If you find proper answers to the questions asked related to accounts payable to get a suitable task done.
What are some common Accounts Payable Interview Questions?
Whether you are looking for expert in-house accounts payable executive, outsource accounts payable task, or aspiring a career in accounts payable in the UK, you need to consider some important questions and answers for it.
Here are some important questions related to Accounts Payable Interview:
1. How to give approval to the Invoice?
– Validate the Invoice properly.
– Get the approval of the proper authorities.
– Give approval to the invoice.
2. Can you explain the Balance sheet?
Balance sheet are financial documents that shows the details about the business’s shareholder equity, assets, and liabilities. It gives a proper insight about the business to the business owners.
3. How to ensure that accounts payable ledger is up-to-date?
To ensure that accounts payable ledger is up-to-date, it must be reconciled on the regular basis. A proper follow-up of the unpaid invoices and other outstanding must be done.
4. What does it mean by ‘debit balance’?
‘Debit balance’ is basically the total amount of money needed in the accounts of customers when they buy the security.
5. What is the difference between Consignee and Consignor?
– Consignee is the person who is not the owner, they just process or receive the goods.
– Consignor is the owner of the goods and delivers it to the Consignee.
6. What are two main types of assets?
Two main types of assets are current assets and fixed assets.
– Fixed assets are used for the long term and they are the tangible things that businesses expect to own.
– Current assets are those that the company will use for a short period and intends to sell.
7. What is a PO (Purchase Order Created)?
PO is basically a document shown by the customer to issue goods or services order. This is an important document while getting any goods and services for customers.
8. What is equity?
Equity is the money received by the shareholders after the payments of the debt.
9. What is debit and credit in accounting?
– Debit is what goes out.
– Credit is what comes in.
10. Prepaid expenses come in which types of accounts?
Prepaid accounts comes in the personal account type.
11. What is Fringe Benefit Tax (FBT)?
Fringe Benefit Tax (FBT) is basically a taxable income for the employees. Here, some benefits are taxable, while some benefits are not taxable for the employees.
12. What is TDS?
TDS is “tax deducted at source.” It is the process where the tax is deducted at source when deductor should pay to a deductee, then the deductee transfers the balance. The deducted amount is given to the government.
13. What does the GAAP mean?
GAAP refers to “generally accepted accounting principles.” They are the generally accepted accounting principles as per the Financial Accounting Standards Board.
14. How to manage the budgeting and cash flow for accounts payable?
A proper review of the potential issues is done and proper cash flow projections related to accounts payable are made.
15. How to ensure completeness and accuracy in accounts payable process?
This can be achieved by doing proper invoicing, updating accounts payable records, verifying data with the vendors, reviewing and updating the policies on the regular basis.
These are some 15 important Accounts Payable Interview Questions which must be considered by all accounts payable professionals for business in the UK. Meru Accounting provides outsourcing services for accounts payable for UK-based business. Meru Accounting is a well-known accounting services providing agency across the globe.
