The Accounts Receivable test evaluates candidates’ skills in identifying, recording, and managing a company’s incoming payments and outstanding invoices. It helps you find skilled accountants who can effectively maintain financial records and ensure accurate tracking of your transactions. Accounts Receivable (AR) refers to the outstanding payments a company is owed by its customers for goods or services rendered on credit. As an essential component of the working capital, efficient management of AR is vital for maintaining healthy cash flow and ensuring the financial stability of an organization. Understanding the AR process and its impact on a company’s financial health is fundamental to acing your interview. We suggest you use accounts receivable interview questions during the last stages of the recruitment process, after having filtered out unsuitable candidates with the help of skills tests.
- For a bit of context—I am a diversity recruiter trying to create a platform that removes bias from the hiring process and encourages the discovery of new and unseen talent.
- We recommend using our assessment software as a pre-screening tool at the beginning of your recruitment process.
- These questions are curated by industry experts to give you the edge you need.
- This process allows businesses to offer flexibility to customers while keeping track of pending payments.
Preparing for the Accounts Receivable Assessment
With a solid grasp of technical concepts, it’s essential to showcase your proficiency with accounting software and tools commonly used in Accounts Receivable. Now that you’re equipped with effective preparation strategies, let’s dive into the core questions you’re likely to encounter during your AR interview. Whether you need to ask candidates for additional information or inform them about their progress in the hiring process, make sure that you communicate promptly. The five tips in this section will make the interview process easier and help you enhance the candidate experience. It refers to the average number of days it takes for a firm to collect a payment from a client following the completion of a sale.
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Services rendered refers to services that a business offers and fulfills before the client pays for the service. Accounts receivable professionals will record the rendered service and produce an invoice when the service agreement has concluded. They may also mention that doing frequent bank reconciliation makes it easier to check is accounts payable debit or credit potential errors and notice if there are any extra transactions that went through. Your candidates must know the advantages of regular bank reconciliation, so look for responses that suggest they complete this process frequently, perhaps each month. For instance, they may mention a discrepancy that they failed to reconcile.
Question 13: How do you Lead and Motivate Your Accounts Receivable Team?
The accounts receivable test is one of many of our online quizzes which can be used to test your knowledge of double entry bookkeeping, discover another at the links below. Take our accounts receivable test quiz to check out your knowledge of accounts receivable used in double entry bookkeeping. As an AR professional, you’ll often encounter complex situations that require creative problem-solving and analytical thinking. Let’s explore common problem-solving questions and how to address them effectively during your interview. Now, let’s explore the crucial role of communication and customer service skills in the Accounts Receivable domain.
D. Writing off an account decreases accounts receivable (credit) and decreases the allowance for uncollectible accounts (debit). The changes to the two asset accounts will net to no change in total assets. Prepare the adjusting journal entry to record the estimated uncollectible accounts (bad debt) expense using the accounts receivable (aging) method on December 31st. B. When the company knows which invoice and the amount a customer will not pay it is written off. A write-off is recorded with a debit to allowance for uncollectible accounts and a credit to accounts receivable.
You need to settle authorizations for both the sales order and ad hoc scenarios.
Video questions let you create a question and have your candidates use their webcam to record a video response. This is an excellent way to see how a candidate would conduct themselves in a live interview, and is especially useful for sales and hospitality roles. Some good examples of things to ask for video questions would be “Why do you want to work for our company?” or “Try to sell me an item you have on your desk right now.” An organization estimates that $20,000 from its $500,000 of accounts receivable will become uncollectible. There is a credit balance of $8,000 in its Allowance for Doubtful Accounts.
Bad debt has to be $28,000 for the ending balance of the allowance account to equal 29,000 given. The allowance account is decreased with a debit because it is a contra asset account. Receive instant access to our entire collection of premium materials, including our 1,800+ test questions. Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping.
Sarah has published numerous articles and books on assessment and learning. Her passion for promoting equity and fairness in the education system fuels her commitment to sharing insights and best practices with educators and policymakers around the world. With JobTestPrep, you can take your time using a step-by-step guide or take a timed test that simulates the actual assessment and provides detailed score reports. While the time limit may vary, the test typically consists of 40 multiple-choice questions that must be completed in approximately 40 minutes.
