Essential Guide to the Accounts Receivable Skills Test

by Sarah Duncan

Cash flow is one of the most vital elements in the financial health of any organization. So ensuring that funds are accurately collected on time is crucial.

An accounts receivable clerk is in charge of tracking all the payments made to or by a company. You will be asked to take a pre-employment accounts receivable assessment if you apply for the position.

While preparing for an accounts receivable skills test may seem difficult, this article will cover the essential points and share key insights into the following:

• Overview of the accounts receivable assessment test
• Responsibilities of an accounts receivable clerk
• Accounts receivable clerk test format
• How to prepare for the test
• Practice questions and answers

Let’s begin!

What is the Accounting Receivable Test

From credit sales to cash sales, businesses need to be able to keep good records and track their activity through accounts receivable in order to gain a better understanding of how it is growing and progressing.

An accounts receivable test is designed to evaluate a candidate’s skills in recording transactions, finding missing information, managing accounts receivable, and many more.

It consists of scenario-based questions that ask candidates to solve common issues when handling accounts receivable.

These include preparing records and passing them in the appropriate books, understanding related documents that affect accounts receivable, and registering transactions to final accounts and trial balances.

An accounts receivable assessment is an important part of ensuring that an organization’s accounts receivable processes are effective and aligned with the company’s goals and objectives.

Applicants who perform well on this test are more likely to excel in this type of role and deal with tasks involving payments, invoicing, and financial documentation.

Skills Measured by the Accounts Receivable Test

• Recording transactions
• Computing ratios
• Basic accounting principles
• Reconciling accounts receivable
• Finding missing information.

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Understanding the Role of an Accounts Receivable Clerk

An accounts receivable clerk is vital in maintaining positive relationships with customers and essential for improving an organization’s cash flow.

They play a critical role in the financial team by managing incoming payments and making sure that all transactions are recorded both accurately and timely.

Issuing invoices is one of the primary tasks in accounts receivable. These clerks keep meticulous track of all transactions to monitor payment schedules and ensure correct billing.

This kind of attention to detail is crucial for the overall finances of an organization.

They are also in charge of managing any issues or discrepancies related to payments. It is an account receivable clerk’s responsibility to address customers promptly when they have any questions or concerns about an invoice.

Moreover, they follow up on overdue payments by sending out reminders, actively communicating with customers, and negotiating payment plans, if necessary, to maintain a steady cash flow.

Another fundamental aspect of an accounts receivable clerk’s job is to maintain accurate records and present insightful reports that can assist management in gaining a clear understanding of the organization’s financial standing and enable informed decision-making.

Duties and Responsibilities

• Process incoming payments and accounts in accordance with financial procedures and policies
• Prepare bank deposits, bills, and invoices
• Ensure that payments are properly accounted for by reconciling the accounts receivable ledger
• Verifying, classifying, computing, posting, and recording accounts receivable data
• Sending bill reminders and contacting clients to facilitate the payment of invoices
• Generate financial statements and create reports that detail accounts receivable status.

Requirements and Skills

• A bachelor’s degree in Accounting, Finance, or Business Administration
• Good understanding of basic accounting principles
• Practical experience in using accounting software and operating spreadsheets
• Proven ability to post, calculate, and manage financial records
• Advanced data entry skills and a knack for numbers
• Proficiency in MS Office
• Negotiation skills and customer service orientation
• Exemplary attention to detail and a high level of accuracy.

Test Format and Structure

The accounts receivable clerk test is crafted for recruiters to identify potential candidates by evaluating their job readiness.

So for this reason, there is a greater emphasis on assessing the knowledge of applied skills through real-world experience as opposed to theoretical knowledge.

The questions on the accounts receivable skills test are formulated to evaluate industry-specific technical skills, aptitude, soft skills, and more. The format of the assessment may vary depending on the type of question.

For instance, multiple-choice questions are used to measure soft skills, technical skills, and aptitude.

These ensure that applicants are evaluated in an impartial and precise manner, with the results demonstrating the true potential and knowledge of each test taker.

While the time limit may vary, the test typically consists of 40 multiple-choice questions that must be completed in approximately 40 minutes.

They are given out to evaluate how well a candidate understands the correlation between allied accounts and accounts receivable.

The questions generally cover topics that have to do with the following:

• Accounting reporting
• Credit terms
• Journalization
• Documentation
• Bad debts accounts
• Statements and presentations.

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Preparing for the Accounts Receivable Assessment

The main goal when preparing for your accounts receivable skills test is to familiarize yourself with the topics mentioned in the previous section.

You need to know them backward and forward because it is your best chance to impress the employer with your knowledge and abilities.

Both speed and accuracy are integral when taking the accounts receivable assessment test, so remember to read each question carefully while moving quickly within the time limit.

In your preparation, make sure that you train yourself to pay attention to details and work smarter – not harder.

If you are looking for an invaluable resource that offers both important rest information and practice tests, you can check out JobTestPrep’s modules for improvement.

They can help you prepare for your accounts receivable clerk test and even accounts receivable interview questions.

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.

Sample Questions and Answers

To give you a clear picture and help set you in the right direction, here are a few practice questions that are similar to the accounts receivable skills test:

1. $800 of goods are sold with credit terms of 1/10, n/30 on June 1. If the buyer pays on June 8, how much should the seller expect to receive?

1. $720
2. $784
3. $792
4. $800

ANSWER: C – This is because $800 – 1% of $800 = $800 – $8 = $792

2. $800 of goods are sold with credit terms of 1/10, n/30 on June 1. The customer returned $100 of the goods on June 3. If the buyer pays on June 8, how much should the seller expect to receive?

1. $692
2. $693
3. $700
4. $792

ANSWER: B – $800 – $100  = $700 – 1% of $700 = $693

3. Given the credit terms of 1/10, n/30, what is the closest annual interest rate for paying in 10 days instead of 30 days?

1. 2%
2. 24%
3. 30%
4. 36%

ANSWER: D – 2% for paying 20 days early is equivalent to an annual rate of 36%.

4. What is the type of balance when the Allowance for Doubtful Accounts appears on a company’s financial statements?

1. Debit
2. Credit

ANSWER: B – This is because the allowance account must be 0 or credit balance when reported on the balance sheet.

5. 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. A __________ to the Allowance for Doubtful Accounts will be included in the adjusting entry.

1. Debit of $12,000
2. Credit of $12,000
3. Debit of $28,000
4. Credit of $28,000

ANSWER: B – Since the present credit balance of $8,000 must become a credit balance of $20,000, a credit of $12,000 must be entered into the Allowance account and a debit of $12,000 must be entered into the Bad Debts Expense account.

Final Words

The accounts receivable skills test can be a challenge but you can do well on it with the right mindset and approach.

You should be able to get high marks and prove to the employer that you are the best candidate for the position if you focus, practice, and prepare.

Make sure to utilize the guide above as a roadmap for successful preparation and practice leading up to test day.

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.

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