How Are The Three Main Financial Statements Connected
Sample Answer:Net income flows from Income Statement into the Cash Flow Statement as Cash Flow from Operations. Dividends subtracted from net income are added to retained earnings from the prior period’s Balance Sheet to come up with retained earnings as on the date of the current period’s BS. The opening cash balance on the CFS is from the prior period’s Balance Sheet, while the closing cash balance on the CFS is the balance on the current period’s Balance Sheet.
The following chart gives you a more comprehensive overview of how the three financial statements are connected to help visualize and present better for your interview:
Answer Key With Explanations
C Running a trial balance is an intermediary step in the financial close, not a core financial statement. Core financial statements are: the income statement, the balance sheet, statement of cash flows, statement of retained earnings and the notes to the financial statements.
D All are correct. A single step income statement has a section for revenue and expenses and only requires one subtraction to arrive at net income/loss. A condensed income statement only includes summary totals. Common sized income statements add a column to show the calculation of each line item as a percentage of revenue.
A Assets, expenses and losses increase with debits. Revenue, liabilities and gains increase with credits.
A Accounts receivable is a short-term asset included in the current asset section of a balance sheet and increases by debits. They come about when customer sales are made on credit, not cash. Accounts receivable become harder to collect, and therefore less valuable, as they age.
A Cash basis accounting records revenue when paid. Accrual accounting reflects revenue when it is earned. Accounts receivable and its related bad debt are part of accrual accounting only.
B Assets, liabilities and equity are found on the balance sheet. Revenue , expenses, gains, losses and net income are income statement accounts.
A Under the accrual basis of accounting, liabilities are recorded in the fiscal period that they are incurred or committed, regardless of when paid.
What Do You Understand By Ifa
The term IFA stands for Institute of Financial Accountants. It is a professional accountancy body that represents and provides certification for financial accountants in the United Kingdom. The IFA is a full member of the International Federation of Accountants. It was founded in 1916 with the motto of making small businesses count.
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Add Additional Tests To Your Pre
Our Accounts Payable test helps you gauge candidates hard skills, but its also important to create a balanced assessment to gain a broader perspective of each candidates full profile.
For example, there are many other skills relevant to accounts payable roles that you need to take into consideration, including attention to detail, time-management skills, and the ability to communicate with a variety of different people in various scenarios.
What Is Most Challenging About Working As An Accounts Payable Clerk
This question is designed to reveal the challenges that come with the job. It may also be a way to gauge your attitude and personality. Employers want to be sure you know what you are getting into and what working as an accounts payable clerk means. You should show your awareness of the challenges and your ability to resolve them.
Example answer: The most challenging part of this job is managing the different file formats and managing the various numbers systems. Its also important to be on the lookout for fraudulent invoices and missing invoices. I am confident that I can make the necessary adjustments to handle these challenges.
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Sample Communication Skills Interview Questions For Account Payable Assistant Position
What Are The Three Factors That Can Affect Your Cash Flow And Business Profitability
The three factors that can affect your cash flow and business profit include:
- Cash flows from investing activities: It includes shares, bonds, physical property, machinery, etc.
- Cash flows from operating activities: It does not include cash received from other sources like investments.
- Cash flow from financing activities: It includes any activities that involve:
- Dividend payments that the company made to its shareholders.
- Any money that includes stock to the public.
- Money borrower going to borrow from the lender.
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Describe A Time You Worked With A Difficult Client
This question requests information about your communication and client skills. Accountants will often work closely with clients to gather information and understand upcoming project goals. When answering this question, be sure to follow the behavioral STAR method. Begin with the situation, describe your task, the action you took and then complete the question with the overall result.
Example:”When interning at Delta Group, I worked with a client who requested tight timelines and often waited until the last minute to submit necessary documents. Since I prefer to plan out my projects weeks in advance, I found it challenging to meet this client’s due dates. After discussing my timeline concerns with the client, I learned that they were feeling overwhelmed with their role in the project.
They were too busy with multiple projects to gather the data that I needed in a timely manner. We collaborated and came to an agreement that it might make more sense for me to request information for the project from their assistant. The client handed off this task and I was able to gather information more quickly, ensuring that the project stayed on its timeline.”
Wns Accounts Payable Interview Questions
- United Arab Emirates – All Cities
I applied online. I interviewed at WNS
First they started with an aptitude test after that they made us wait for 3 hrs for the hr round after that the hr said me to visit wns magarpatta the next day for an interview I went to the interview in which the hr gave me a brief abt the job profile which was totally opposite to which i applied for My only concern is dont waste the candidates time when you know that there is a difference between the companies job profile and what the candidate is expecting
Anonymous Interview Candidate in Mumbai
I applied through an employee referral. The process took 1 day. I interviewed at WNS in Mar 2019
It was pretty easy. They just asked simple quetion on accounting. Journal entries rules tell me about yourself and it was pure night shift job so i declined the offer. They were giving night allowances but though i declined.
I applied online. The process took 1 day. I interviewed at WNS in Sep 2018
It was easy process. I applied for account payable process at wns vikroli loaction. Interview round in sequence ie aptitude then HR and then Manager Basic accounting concept should asked by manger and also supportive manger staff . You go there with knwledge of basic accounting terms accrual account payable receivable and all. Helpful for fresher it was nice and easy interview
Anonymous Interview Candidate in Mumbai
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The Real Purpose Behind Unusual Questions
Now take your interviewing skills to the next level by practicing replies to a few unusual questions. In a Robert Half survey, executives were asked to share the strangest questions they’d ever been asked during an interview. Here are just a few they cited:
- “What would I find in your refrigerator?”
- “What’s the last book you read?”
- “What animal are you most like?”
Why don’t hiring managers just stick to standard questions when interviewing an accounts payable clerk? Because your answers to oddball questions may shed light on your personality, problem-solving skills and performance under pressure in ways that standard questions do not.
What Do You Consider To Be The Biggest Challenge Facing The Accounting Profession Today
What They Want to Know: There is no one right answer to this question, but you should be able to demonstrate knowledge of and commitment to your profession by having a well-thought-out and intelligent answer. The interviewer wants to see that you are familiar with the industry and its challenges, and that you care about your job enough to have an opinion.
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What Are Payment Terms
SAP uses payment terms to determine the due date and discount calculation. It assumes the terms of payment in the vendor master and customer master to be the default at the invoice level. A user can change this to be at the invoice level.
Example: ‘Accounting payment terms are the payment policies suppliers impose on their customers. Payment terms ensure suppliers receive payments within a reasonable time frame. You can permit discount terms to speed up cash collection.’
What Are The Disadvantages Of A Double
The disadvantages of the double-entry system are:
- If there are any compensatory errors, it is difficult to find out by this system
- This system needs more clerical labor.
- It is difficult to find errors if the errors are in the transactions recorded in the books.
- The double-entry system is not preferable to disclose all the information of a transaction, which is not properly recorded in the journal.
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Why Do You Want To Work For Us
As an accountant, you often have many job options across a variety of industries. Since there is such a broad range of career opportunities to choose from, the hiring manager might want to know . A good answer outlines why you think you are a good fit for the company.
Example:I performed extensive research on your company and understand your current employees speak highly about working here. Not only does the culture here seem like a great fit for me, but your mission statement resonates with my personal work ethic. I have also noticed your company is involved in giving back to the community, and I am a huge supporter of making our town the best it can be, especially since I am raising a family here.
Related: Why Do You Want to Work at Our Company: Best Answer to This Interview Question
Holl explains why employers ask this question, the three key components of a strong answer and a common mistake that you should avoid.
Please note that none of the companies mentioned in this article are affiliated with Indeed.
Explain The Difference Between Credit And Debit
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.
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General Financial Accounting Interview Questions
These 31 general interview questions are ideal for breaking the ice during the interview and getting a general idea of your candidates experience and knowledge.
Financial Accounting Interview Questions Related To Terms And Definitions
The 55 financial accounting interview questions in this section relate to critical terms and definitions used in the field, and will help you evaluate your applicants knowledge.
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Don’t Let Salary Questions Throw You For A Loop
Sometimes, the simple can be the toughest to answer. For example, a question about the accounts payable salary you seek could get you flustered if you haven’t thought about the answer ahead of time. Before any interview, be sure to review the latest Salary Guide From Robert Half to get a sense of the compensation you can expect for an accounts payable clerk. You can even cite this source in your answer.
For example, the salary midpoint for an accounts payable clerk is expected to be $39,250, according to the 2022 Salary Guide. For an accounts receivable/accounts payable manager, the midpoint level is considered to be $65,000 for 2022. The Salary Guide allows you to fine-tune the listed salary ranges to the city nearest you.
Access the Salary Guide for the latest hiring trends, hottest jobs and salary insights in finance and accounting.
Research The Latest Trends In The Industry
The accounting industry is constantly changing. By researching the latest trends in the industry before your interview, you can demonstrate your dedication to the field. This commitment to the industry can also help you stand out from other applicants who might have a similar education and internship experience.
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If You Could Only Use One Financial Statement To Evaluate The Financial State Of A Company Which Would You Choose
Sample Answer:I would want to see the Cash Flow Statement to see the actual liquidity position of the business and how much cash it is using and generating.
The Income Statement can be misleading due to any number of non-cash expenses that may not truly be affecting the overall business. And the Balance Sheet alone just shows a snapshot of the company at one point in time, without showing how operations are performing.
Whether a company has a healthy cash balance and generates significant cash flow indicates whether it is probably financially stable, and this is what the CF Statement would show.
Sample Follow-up Question: Now, assume you can choose to see two of a company’s three financial statements. Which would you choose?
Sample Follow-up Answer:I want to see the Income Statement and the Balance Sheet because one can produce an accurate expected or illustrative Cash Flow Statement with the information presented in the Income Statement and Balance Sheet.
The Cash Flow Statement begins with Net Income and then adjusts for non-cash and non-operating expenses, both of which are available in the Income Statement. We can calculate the changes in net working capital from information on the Balance Sheet to arrive at the Cash Flow from Operations.
What Is Wacc And How Do You Calculate It
Sample Answer:WACC is the acronym for Weighted Average Cost of Capital. It is used as the discount rate in a discounted cash flow analysis to calculate the present value of a company’s cash flows and terminal value. It reflects the overall cost of a company raising new capital, which represents the riskiness of investment in the company.
WACC represents the blended cost to both debt holders and equity holders, based on the cost of debt and equity for that specific firm.
The formula below helps you calculate the WACC of a company if you are put on the spot and asked to calculate it as part of your technical interview:
where,D = Book value of debtP = Value of preferred stockKD = cost of debt KP = cost of preferred stock T = Corporate tax rate
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What Do You Understand By Fringe Benefits Tax Or Fbt
FBT stands for Fringe Benefits Tax. It is a tax that is applied to provide some benefits to employees from their employer and the cash salary or wages. For example, a novated lease is a benefit outside your salary or wages. So, it is an example of FBT.
FBT was introduced by the Finance Act 2005 with effect from April 1, 2006. It was set at 30 percent of the cost of benefits the company paid. This is an additional tax along with income tax, irrespective of whether or not the company had income-tax liability.