AR / OTC Interview Questions
1. What is Accounts Receivable and how is it reported in the financial statements?
2. What are the main functions of the AR department?
3. What is Reconciliation?
4. What is reconciliation statement and investment banking?
5. What are the different stances that a company can take with regards to credit policy?
6. What are the factors affecting the credit policy of a company?
7. Explain in brief the trade-off between risk and returns?
8. While reviewing the credit of prospective customers, what do companies assess?
9. How do companies assess the ability of customers to pay on time?
10. What is the difference between back end collections and front end collections?
11. Explain the terms – credit period and credit limit?
12. What are some of the commonly used credit terms?
13. What are examples of deferred revenue expenditure?
14. What is the difference between revocable and irrevocable letter of credit?
15. What are the various types of discounts offered to customers?
16. What is a sales order?
17. What are the three types of hold?
18. List the reasons for - why customers might not release payments?
19. What is a customer escalation matrix?
20. What are some of examples of invoice errors?
21. Differentiate between a customer service query and a collection query?
22. What is the difference between debenture holders and creditors?
23. How is DSO computed and what does it indicate?
24. What is the rationale behind providing for bad and doubtful debts?
25. What is a claim?
26. Why is it important to apply receipts correctly?
27. What is a factoring agreement? What are different types of factoring agreements possible?
28. What are the issues related with Accounts receivable?29. What is the Auto Invoice? What are the setup Steps for Auto Invoice?