We have a collection of top finance and accounting interview questions compiled with real life

experiences and research with working professionals. They are a must read for all job seekers
especially freshers and intermediate level candidates with an experience range of 0-4 years.

These finance and accounting interview questions will act as a great for refresher for someone
trying to brush up their accounting fundamentals as well. Don’t forget to collect your bonus item
at the end of this article!

Our research involved over 100 aspirants who went through a technical or written interview in
companies such as Accenture, TCS, Infosys, IBM, Cognizant, Capgemini, Wipro, HCL, NTT Data,
Genpact, WNS, Maersk, Sutherland, Renault Nissan, Rolls Royce, Shell, etc…
1. Tell me the Accounts Payable End to End process flow?
2. What is Vendor Master?
3. What is Invoice Processing? How do we process?
4. What is 2 Way Match?
5. What is 3 Way Match?
6. What is 4 Way Match?
7. How many Invoices do you process per day?
8. What is your Accuracy in percentage?
9. How do you prevent Duplicate Payments?
10. How do you ensure vendors are paid on time?
11. How do you handle Invoice or Payment disputes?
12. What are the Payment modes?
13. What is P Card?
14. What is Vendor Reconciliation?
15. How do you handle escalations? Do you have experience in handling calls?
16. What is KPI?
17. What is SLA?
18. What is Internal Control?
19. What is Segregation of Duties?
20. What are the Accounts Payable Journal Entries?
1. Tell me the Accounts Payable End to End process flow?

• Received Invoices in pdf from Generic Mailbox (GMB) or In Ticket format,

• Vendor Master,
• Invoice Processing,
• Payments,
• Vendor Reconciliation,
• Query Handling,
• Month End Close (MEC)

2. What is Vendor Master?

Vendor Master is to Create/Modify the Vendor details like

• Vendor Code,
• Currency,
• Vendor Address,
• Payment Terms,
• Payment Method,
• Tax ID,
• Bank Details.

3. What is Invoice Processing? How do we process?

Invoice processing is the act of receiving, examining and fulfilling payment requests
from vendors Invoice processing and suppliers.

Invoice processing within an organization ensures that a company remains in good

standing with its service and resource providers while paying attention to the billing details.

We process with Invoice, Purchase Order (PO), Goods Received Note (GRN) &
Quantity.

We also process with

• Invoice Date,
• Due Date
• Invoice Number,
• Amount,
• Tax,
• GL Code &
• PO.
4. What is 2 Way Match?

Invoice & PO

5. What is 3 Way Match?

Invoice, PO & GRN

6. What is 4 Way Match?

Invoice, PO, GRN & Quantity.

7. How many Invoices do you process per day?

We process with 100 Invoices per day (depends upon the process).

8. What is your Accuracy in percentage?

Accuracy is 99%.

Internal Error is 99 % & External Error is 1% (depends upon the process).

9. How do you prevent Duplicate Payments?

We need to verify in Payment Run before booking in Payments.

Check Invoice Date, Invoice Number, Amount & Currency.

10. How do you ensure vendors are paid on time?

We need to process the Invoices on priority in daily basis.

11. How do you handle Invoice or Payment disputes?

We need to perform Quality Control before getting into disputes. We need to email the
exact query with follow up on regular intervals. We need to ask in escalation matrix like
escalation 1, escalation 2 & escalation 3.

12. What are the Payment modes?

We have many Payment modes like (depends upon the process)

• EFT – Electronic Funds Transfer

• ACH – Automated Clearing House
• Wire – Wire Transfer
• Check – Check
• IBA – International Bank Account Number
13. What is P Card?

Purchasing Card (P Card) is a form of company charge card that allows goods and
services to be procured without using a traditional purchasing process. In the UK, purchasing
cards are usually referred to as procurement cards.

14. What is Vendor Reconciliation?

Vendor Reconciliation is part of accounts payable activity where one must reconcile
vendor balance in his books of accounts with that of the vendor balance in the books of the
vendor.

• Statement of Accounts – Invoice Date, Number, Amount, Currency.

• Subledger Reports – Processing Invoices, Open items & Paid items.

15. How do you handle escalations? Do you have experience in handling calls?

Escalations

Yes.
To involve someone more important or higher in rank in a situation or problem.
You might need to escalate the issue to the next highest level management team.
The customer is threatening to escalate his complaint.
More examples. The issue could escalate into a public relations crisis.
These problems can escalate very quickly.

Calls

Yes.
We have call with Business Partners (BP) regarding
Queries, weekly and monthly review, status on Invoices, Payment, on hold, etc.

16. What is KPI?

Key Performance Indicator (KPI) is a measurable value that demonstrates how

effectively a company is achieving key business objectives.

Organizations use KPIs at multiple levels to evaluate their success at reaching targets.

17. What is SLA?

Service Level Agreement (SLA) is an agreement between a party that offers some
service and users of those service.

The contract includes the list of services and highlights the quality standards that the
provider should follow to guarantee customer satisfaction.
18. What is Internal Control?

Internal control as defined by accounting and auditing, is a process for assuring of an

organization's objectives in operational effectiveness and efficiency, reliable financial
reporting and compliance with laws, regulations and policies.

19. What is Segregation of Duties?

Segregation Of Duties (SOD) is an internal control designed to prevent error or fraud by

having 2 or more persons in separate activities to complete one activity.

It has Authorizing, Recording, Custody and Comparisons.

• Authorization – Purchase department

• Recording – Accounts Payable department
• Custody – Receiving department
• Comparison – Internal Audit

20. What are the Accounts Payable Journal Entries?

Purchase
To Accounts Payable

Inventory
To Accounts Payable

Expense
To Accounts Payable

Accounts Payable
To Bank