Top 20 Accounts Receivable Interview Questions And Answers 2021


Accounts Receivable Interview Questions

Accounts receivable is the personnel making sure that his/her company receives the payment for services and goods and the transactions are recorded accordingly. This position requires one to secure the revenue by going through receipts, posting them, and solving discrepancies. It calls for complete dedication owing to the nature of the job at hand. The Accounts Receivable job interview has specific crucial questions, and providing correct answers will help you secure your job role. Let us explore these questions along with their solutions. 

1.     Why Are You Interested In This Role? 

Tip 1: The interviewer wants to know why you are interested in this particular role.  

Tip 2: You can give a personal story to support your answer. 

Answer: I am passionate about accounts and everything touching on money. I am also a first learner and can continue bettering my skills through this job role and deliver excellently. I am brilliant in accounting and have had a chance to polish my skills over time. I, therefore, believe that I will be an asset to your company. 

2.      What Are The Roles Of Accounts Receivable? 

Tip 1: The interviewer wants to know if you have the right knowledge of this role 

Tip 2: Mention the roles that you think are devised for this job role 

Answer: An accounts receivable is responsible for specific roles in the accounting department of any organization. These include maintaining the billing system, generating the invoices and account statements, performing account reconciliations, maintaining the accounts receivable records and files, producing management reports and monthly financial, investigating, and finally resolving regulations or inquiries.  

3.      What Are The Qualities That an Accounts Receivable Should Possess to be Effective?

Tip 1: Mention the qualities that you think the company needs in the given position. 

Tip 2: Also mention the qualities that you can deliver. 

Answer: Accounts Receivable should have these qualities to perform his role well:

– The ability to manage and prioritize expectations 

– A keen eye for detail 

– Ability to work without any dependency 

– The ability to communicate effectively and articulately with people in the company

– Have a mathematical background 

4.      What Major Challenges Did You Face During Your Last Role? How Did You Handle It? 

Tip 1: Highlight the challenges you have been through in the past 

Tip 2: The interviewer wants to know the ways you use to tackle these challenges 

Answer:  I always try my best to minimize the challenges I encounter in this given role. However, my last job mostly involved working for a couple who had close to no educational background. They were always suspicious and thought I wanted to steal from them. I had to handle them patiently and spend hours convincing them, which bore fruits. 

5.      Describe Your Daily Routine As a Accounts Receivable?

Tip 1: The interviewer wants to know if you are experienced enough to do this job 

Tip 2: Mention the routine at your former workplace. 

Answer: My daily routine revolves around numbers. I maintain the whole billing system, generate account statements and invoices, perform certain account reconciliations, keep the files and records of accounts receivable, and produce monthly management and financial reports. 

6.      Describe Briefly Your Accounts Receivable Experience? 

Tip 1: The interviewer wants to know if you have what it takes to succeed in the given role. 

Tip 2: Mention the highlights of your experience as Accounts Receivable

Answer: I have been in the field of accounting for quite some time, and it still is fun to deal with all the cashflows and numbers of a business. I have managed to work for some large companies, which helped me sharpen my skills. I can easily handle all accounting software related to my role and produce high-quality records in no time. 

7.      What Kind Of Strategies And Mindset Is Required For This Role? Explain With Example 

Tip 1: The interviewer wants to know if you have the right attitude to take on this role 

Tip 2: Answer this question using a strategy that has helped you better your performance. 

Answer: As an Accounts Receivable, one needs to be more attentive and have a keen eye for detail. One should be organized to set defined goals and efficient enough to reach existing customers. This will help the organization be a better place for cashflows and accounts. One needs a calm and peaceful mindset to carry out the regular hectic accounting tasks correctly. 

8.      What is the Biggest Challenge that You Foresee in This Job? 

Tip 1: The interviewer wants to see if you are ready to take on the new role 

Tip 2: Mention the challenges you think will be strong enough to shackle you

Answer: Every role has its fair share of challenges, but that does not give room for incompetence. Some of the significant challenges that I foresee are managing higher transaction volumes alone and occasional missing information. However, I believe that I can conquer that with the level of education and experience that I have in this field. 

9.      How Do You Stay Motivated at Work? 

Tip 1: The interviewer wants to know if you can push through the tides. 

Tip 2: Your motivation should not be money-related. 

Answer: I have developed a habit of rewarding myself every time I meet a deadline. Every time I do better at work or complete my tasks earlier, I reward myself. By taking time out to do so, I stay motivated in my role. This also takes away the dependency on anyone from senior positions to motivate me via appreciation. 

10.   Describe A Time You Failed In This Role And The Lesson You Learned

Tip 1: Talk about the times you failed in your position. However, do not throw yourself under the bus. 

Tip 2: Be honest in this answer and mention how you have learned your lesson

Answer:  I almost lost my cool during my early days in this role. I was at a company that underpaid us and still mistreated us. One day I could not take it anymore and decided to storm out of a meeting out of anger. This almost cost me my future jobs as the manager left nasty comments when I was leaving. I learned always to be relaxed and handle things maturely. 

11.    What Is Capital Working?

Tip 1: The interviewer wants to know if you have basic knowledge of accounting

Tip 2: Show the interviewer that you came with your homework done 

Answer: Working capital is defined as the current assets less the current liabilities. In banking, working capital is mostly expressed in narrow terms as the existing assets less current liabilities, i.e., excluding the interest-bearing debt. 

12.    What Does It Look Like To Have Negative Capital?

Tip 1: The interviewer wants to know your basic knowledge of the terms in accounting

Tip 2: Show the interviewer that you are a master in this game. 

Answer: Negative working capital is widespread in a few industries such as grocery retail and the restaurant business. For grocery stores, customers pay upfront, inventory moves faster, but the suppliers mostly give a month credit. This implies that the company is receiving cash from the customers to pay the suppliers. Negative working capital is a sign of efficiency in businesses that have low inventory and accounts receivable. In other industries, this capital is the signal that the company is going into financial trouble.

13.  If The Cash Is Collected By The Customers And Is Not Recorded As Revenue, What Happens With It?

Tip 1: The interviewer wants to know if you understand different accounting concepts. 

Tip 2: Show him/her that you are good at your job. Make it convincing. 

Answer: This cash goes in the Deferred Revenue on the sheets as a liability. It shows the money that has not been earned yet. 

14.  How Do You Differentiate The Accounts Receivable And The Deferred Revenue?

Tip 1: Correct answers to such questions will convince the interviewer that you have a total understanding of accounting. 

Tip 2: Show the interviewer that you are up to the job requirements. 

Answer: Deferred revenue shows the cash received from customers for the services or the goods not provided yet. Accounts receivable is the cash owing from the customers for services or goods provided.

15.  .What Expense Is A Purchase But Capitalized?

Tip 1: The interviewer is testing just how good you are at this job and if you understand certain basic principles. 

Tip 2: Show the interviewer that you did not come to play.

Answer: If the business will use the purchase for over a year, it is depreciated and capitalized. In this scenario, it is not used in the purchase. 

16.  Under Which Circumstances Is Goodwill Created?

Tip 1: The interviewer wants to know if you understand matters such as goodwill and how they contribute to the business. 

Tip 2: Tackle this question confidently and show the interviewer that you are indeed suitable for this role. 

Answer: When a company buys a business for a value that is more than the recommended one based on its tangible and intangible assets, goodwill is created. 

17.  What Is The Way Of Recording PPE, And What Is Its Importance?

Tip 1: Do you understand PPE? Convince the interviewer. 

Tip 2: You need to convince the interviewer that you understand all the procedures in your job. Do not come off as inexperienced. 

Answer: There are mainly four areas to consider while accounting for PPE on the balance sheets. These are purchases, additions, depreciation, and dispositions. Additionally, you might also consider the revaluation. For most businesses, PPE is the highlighted main capital asset that creates revenue, cash flow, and profitability. These records help companies to maintain an accurate database. 

18.  How Does The Inventory Write-Down Affect The Three Statements?

Tip 1: The interviewer is assessing your basic knowledge in accounting and general practice. 

Tip 2: Your answer needs to be convincing and show you are indeed experienced in this field. 

Answer: Over the balance sheets, the inventory asset account is decreased by the write-down and shareholders equity. This income statement is hit through an expense in COGS, or the separate line items for an amount of write down that reduces net income. Over the cash flow statement, this writes down is added back over the CFO as it isn’t a cash expense. 

19.  Explain The Matching Principles And Revenue Recognition

Tip 1: The interviewer wants to see just how well you understand certain fundamentals of accounting. 

Tip 2: Show the interviewer that you are indeed good at what you do. 

Answer: The revenue recognition principle is used to dictate the process and also the timing by which revenue is recognized and recorded in the financial statements based on specific criteria. Simultaneously, the matching principle is used to dictate the expenses’ timing to be matched to the period in which they incur, in opposition to when they are paid.

20.  Being a Company CFO, What Will Keep You Awake In The Night?

Tip 1: The interviewer wants to know just how you are dedicated to your job. 

Tip 2: This question seeks to determine whether you are the right fit for the job or not. 

Answer: I would burn the midnight oil planning, implementing, managing, and coming up with better ways to manage the financial activity of the company. Being a CFO puts me in a tight position, and therefore, I will ensure that I go the extra mile. 

Conclusion

These were a few questions that you may be asked in an accounts receivable interview. You need to answer them smartly and create your answers based on the tips given to each.

Also, make sure that you pay attention to your body language when answering these questions, as most interviewers look for the smallest things that can disqualify you. 

It would be best if you appeared confident and well suited for the job at hand. You can learn a few tips for managing anxiety that will help you in your job interview. 

Success in an interview is more than just answering the questions correctly. It involves even the way you speak and move. 

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