Accounts Receivable Practice Exam

About Accounts Receivable
Accounts receivable refers to the amount that a company is entitled to receive from its customers for goods or services sold on credit. In other words, it is the amount that your customer owes you in respect of contractual obligations.

Accounts receivables are also known as debtor, trade debtors, bills receivable or trade receivables.

Why is Accounts Receivable important?
Management of receivables refers to planning and controlling of debt owed to the customer on account of credit sales.  In simple words, the successful closure of your order to sales is determined only when you convert your sales into cash. Till your sales are converted into cash, you need to manage ‘how much you need to receive, from whom and when?

Another reason, accounts receivables are one of the key sources of cash inflow and given the volume of credit sales, a large amount of money gets tied-up in accounts receivables. This simply implies that so much of money is not available till it is paid. If these are not managed efficiently, it has a direct impact on the working capital of the business and potentially hampers the growth of the business.

Benefits of accounts receivables are
•    Improve your cash position.
•    Increase control over cash and working capital.
•    Increase accounts receivable management efficiency.
•    Improve customer communication.
•    Improve customer service and satisfaction.
•    Reduce administrative costs.
•    Shorten the sales to payment cycle.

Who should take the Accounts Receivable Exam?
•    Accounting or Finance professionals
•    Business owners
•    Entrepreneurs
•    Anyone who wants to assess their Accounts Receivable skills
•    Accounting or Finance managers and senior executives
•    Accounting or Finance consultants
•    Professionals working in outsourced companies responsible for Accounts Receivable
•    Any professional with skills and knowledge on Accounts Receivable
•    Anyone interested in Accounts Receivable
•    Anyone who wants to learn Accounts Receivable
•    Students

Knowledge and Skills required for the Accounts Receivable Practice Exam

Skills needed to excel in Accounts Receivable are

• Good degree of accuracy
• Attention to detail.
• Expert in calculations and figures
• Good knowledge of accounting principles.
• customer service skills
  
  

Accounts Receivable Practice Exam Objectives

Accounts Receivable exam focuses on assessing your skills and knowledge in financial and accounts receivable.

Accounts Receivable Practice Exam Pre-requisite

There are no prerequisites for the Accounts Receivable exam.

Accounts Receivable Certification Course Outline

1. Accounting Basics
1.1 Meaning of Accounting
1.2 Basics of Bookkeeping and Accounting
1.3 Accounting Concepts and Principles
1.4 Branches of Accounting
1.5 Classification of Expense, Income, Assets and Liabilities
1.6 Financial Statements
1.7 Systems of Accounting  

2. Accounting Documents
2.1 Source Document
2.2 Journal
2.3 Ledger  
2.4 Trial Balance
2.5 Subsidiary Books
2.6 Types of Subsidiary Books
2.7 Journal Proper
2.8 Cash Book
2.9 Bank Pass Book
2.10 Petty Cash Book
2.11 Imprest system
2.12 Bank Reconciliation Statement

3. Financial Accounting
3.1 Rectification of Errors
3.2 Suspense Account
3.3 Capital Expenditure and Revenue Expenditure
3.4 Capital Receipts and Revenue Receipts

4. Accounts Receivable
4.1 Internal controls, risk management and compliance
4.2 Invoice processing and handling
4.3 Applying technology
4.4 Collections
4.5 Best Practices

Exam Format and Information
Certification name – Accounts Receivable Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199