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 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.
Mitigating Credit Risks and Bad Debt Exposure
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.
Familiarity with Accounts Receivable Software
Ask your candidates these 16 accounts receivable interview questions related to definitions and terms to learn how comprehensive their knowledge is. The accounts receivable assessment test is a versatile tool maximizing the higher education tax credits to identify top talent for various financial roles. Whether you’re looking for specialists or managers, this test ensures applicants have the necessary skills to excel in managing accounts receivable.
Create high-quality assessments, fast
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.
Just pick a name, select the tests you need, then add your own custom questions. Since the time limit is the most difficult part in most cases, remember to work through the assessment test by paying attention to details and answering quickly and accurately. They are given out to evaluate how well a candidate understands the correlation between allied accounts and accounts receivable. Record all required entries related to accounts receivable for the current year. If you need a refresher course on this topic you can view our tutorials on the accounts receivables here. With real-life scenarios addressed, let’s explore behavioral and situational questions to gauge your ability to handle various work-related situations.
- A. Bad debt expense must be recorded in the period the sale occurs to comply with the matching principle.
- Ask them this question to determine whether they have analyzed large volumes of transactions, financial reports, bank deposits, and receipts.
- Why not try one of our accounting quizzes and test your knowledge of bookkeeping and accounting.
- Making sure your books are in order is not always easy but it’s crucial for the success of your business.
- This is a great way to leave a positive and lasting brand impression on your candidates.
Analyzing Accounts Receivable Reports for Decision-Making
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.
With your leadership and conflict resolution skills highlighted, let’s explore the concept of continuous improvement in Accounts Receivable. In the Accounts Receivable field, collaboration between departments is crucial for efficient operations and successful AR management. Let’s delve into the various aspects of teamwork and collaboration during your AR interview.
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.
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.
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.