Accounts Receivable Questions

Q:

Explain what is BRS?

Answer

BRS - Bank Reconciliation Statement


 


A bank reconciliation statement is a statement prepared by organizations to reconcile the balance of cash at bank in a company's own records with the bank statement on a particular date.


 


The differences may arise because of the following reasons:


 


     - Cheques deposited into bank but not yet collected by bank


 


     - Cheques issued by the organization but not yet presented for payment


 


     - Cheques directly deposited by customers into the bank


 


     - Bank charges debited by bank


 


     - Interest credited or some receipts directly collected by bank based on org. request.


 


     - Some payments directly made by bank based on the organizations request.


 


So, the statement shows the reasons as what are the reasons for difference in balance.

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Subject: Accounts Receivable Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

How much time needs to pass for an A/R account to be considered delinquent?

Answer

After 90 days of the due date

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Q:

What is the difference between back end collections and front end collections?

Answer

Back end collections means like commission on sales or commission on providing services.
Front end collections means like sales and providing services

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Q:

Contra-entries are passed only when

A) Simple cash book is prepared B) Double column cash book is prepared
C) Three column cash book is prepared D) None of the above
 
Answer & Explanation Answer: B) Double column cash book is prepared

Explanation:

Contra-entry is the entry which effected the both sides in cash book.

It is occured in three times, i.e.,

1.Cash deposited in to bank,

2.Cash withdrawn from the bank for office use, and

3.Receivable cheque deposited in to the bank in another day.

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Filed Under: Accounts Receivable
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

What is the full form of SOX and what does it means in Accounting ?

Answer

Sarbanes Oxley Act. Otherwise known as Public companies Accounting reforms and investor protection Act. It was enacted in 2002 in USA after lot of scams come up on accounting framework whereby investors lose faith and confidence on accounting disclosures.

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Subject: Accounts Receivable Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

7 4006
Q:

What is the journal entry process from the time of generating an invoice to receiving payment?

Answer

When an invoice is generated and sent to the client/customer, the JE to be passed is debit customer account and credit revenue/accounts receivable account. When payment is received from customer, then debit bank account and credit the customer account concerned

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7 9673
Q:

Which among the following is an asset for a bank?

A) The loans disbursed by Bank to its customers B) Cash Deposits of Customers
C) Investments made by Bank’s customers in its financial Products D) All of the above
 
Answer & Explanation Answer: A) The loans disbursed by Bank to its customers

Explanation:

Asset means anything that can be converted into cash. Here in banks, the loans disbursed by Bank to its customers is considered as assets because when they are cleared by them, then they are directly converted to cash.

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Filed Under: Accounts Receivable
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

What does drop ship mean in Accounts ?

Answer

Drop Ship refers to, a manufacturer shipping goods directly to one of its customers' customer (instead of delivering the goods to the customer that placed the order with the manufacturer).


This concept of shipping goods is called as drop ship, drop shipping or a drop shipment.

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Subject: Accounts Receivable Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

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