Thursday, December 17, 2015

Accounts Payable test answers of 2016.

Find Complete and recently updated Correct Question and answers of Accounts Payable. All Answers updated regularly with new questions. Upwork Accounts Payable test answers of 2016.



Question:* Per annum means which of the following?

Answer: • Per year

Question:* What is a risk of the purchasing department not granting a rush check?

Answer: • They risk being put on credit hold by valued suppliers

Question:* If a trade discount of 20% is given to a wholesale customer with a total of x dollars of goods originally purchased, what is the final price the customer pays?

Answer: • x-0.2x

Question:* What can happen if an invoice is lost?

Answer: • It can be duplicated

Question:* Which of the following is a current liability?

Answer: • (All of these)

Question:* True or False? The account payable for one company corresponds to another company's account receivable.

Answer: • True

Question:* Which of the following are accounts payable in a household?

Answer: • (All of these)

Question:* Which of the following is true about a voucher used in accounts payable?

Answer: • (All of these)

Question:* In the context of accounts payable, what is Net 30?

Answer: • Net 30 is trade credit specifying 30 days to be paid

Question:* What is the definition of a purchase order?

Answer: • A document prepared by a company to show what exactly the company is ordering from a supplier

Question:* What three documents are important when implementing controls to reduce duplicate payments?

Answer: • Vendor's invoice, purchase order, and receiving report

Question:* What is an invoice?

Answer: • An invoice is a bill

Question:* What is the definition of accounts payable?

Answer: • The money from a business that it owes and is shown on the balance sheet as a liability.

Question:* True or False? A vendor invoice is sent from a vendor to a company for some services or goods rendered.

Answer: • True

Question:* True or False? ePayables are often used as automation solutions for large firms.

Answer: • True

Question:* True or False? A receiving report is essentially a document from a company that lists the goods it has received.

Answer: • True

Question:* A reduced price for a certain product is called which of the following?

Answer: • trade discount

Question:* What role does technology serve in the auditing of accounts payable?

Answer: • Because invoices, expense reports, checks, and other supporting documents are digitized, the auditing process is simpler and more concise.

Question:* Why is automation of accounts payables a significant technological landmark?

Answer: • It can significantly reduce the amount of paper invoices.

Question:* If your company is offering your customers a 2/10 net 30 discount, what does this mean?

Answer: • It means that if the bill is paid in 10 days, a 2 percent discount is given

Question:* A company that pays 10% less by paying back what it is owed in a shorter time frame is called what?

Answer: • Early payment discount

Question:* If AP pays from a statement, what potential result could occur?

Answer: • A duplicate payment

Question:* What is another term for a supplier?

Answer: • Vendor

Question:* If a paycheck was automatically deposited, what was used to make said transaction?

Answer: • An Automated Clearing House (ACH)

Question:* True or False? A balance sheet has the amount owed to creditors in two groups, namely current liabilities and long-term liabilities.

Answer: • True

Question:* Which of the following are one of the steps in a Standard Monthly Accounting Closing Cycle?

Answer: • (All of these)

Question:* What does the acronym, “EDI” mean?

Answer: • Electronic Data Interchange

Question:* What aspect is most important about the relationship between purchasing and accounts payable?

Answer: • Cooperation

Question:* True of False? For a specific company, an invoice is usually used externally and a voucher is used internally.

Answer: • True

Question:* Which of the following is an example of a creditor?

Answer: • (All of these)

Question:* True of False? A blank check is usually a check that is signed by an employer but lacks any more details like the amount, date, and payee.

Answer: • True

Question:* When are long term liabilites typically due?

Answer: • More than 1 year

Question:* True or False? Accounts payables are only limited to businesses.

Answer: • False

Question:* How should AP deal with check kiting?

Answer: • Only accept checks for the exact amount of the transaction

Question:* True of False? A trade discount cannot vary between various wholesalers.

Answer: • False

Question:* What is the definition of working capital?

Answer: • Current assets minus current liablities

Question:* What is the definition of working capital?

Answer: • Current assets minus current liablities

Question:* Why is the purchasing department critical to accounts payable?

Answer: • The purchasing department sets the agreements made with a companies vendors

Question:* Which of the following is a common problem with invoices?

Answer: • The invoice is not addressed properly, which causes a delay in payment

Question:* What three documents are included in a three-way match?

Answer: • Vendor's invoice, Purchase order, and Receiving order

Question:* What is a secured creditor?

Answer: • A creditor that has a legal right to the company's assets

Question:* Accounts payable information is found reviewing the which of the following?

Answer: • (All of these)

Question:* What is a benefit of using a procurement card?

Answer: • Procurement cards reduce the amount of time and paperwork in procurement

Question:* What are procurement cards used for?

Answer: • They are similar to credit cards, issued only for the purpose of procurement

Question:* If a requester insists on a rushed check to cover a mishap, what is the best method to handle this situation?

Answer: • With managerial support, deny the rushed check

Question:* What is the definition of a company's current ratio?

Answer: • Current assets divided by current liablities

Question:* What are payment gateways used for?

Answer: • An on-line service authorizing credit card payments

Question:* Current liablities are usually due within what period of time?

Answer: • 1 year

Question:* A common rule for companies to avoid a duplicate payment is the following.

Answer: • Don't pay from vendor statements but only from vendor invoices.

Question:* What is one of the advantages of drop shipping?

Answer: • Allows a company to avoid extra costs by decreasing some non-value activites

Question:* If accounts payable set up an in-house web page for their daily functions, where would it be hosted?

Answer: • Their intranet

Question:* What would be considered a rushed check?

Answer: • A check produced outside the normal production cycle

Question:* What financial calculation is used to determine a discount's ROI?

Answer: • Discount/Discounted Price x Days in a year/Days paid early = ROI

Question:* If a company charges 0.8 percent interest monthy on a monthly balance what is the interest per annum?

Answer: • 9.6%

Question:* True or False? When a bill is paid, the accounts payable is increased with a debit entry.

Answer: • False

Question:* What is it called when a vendor ships out a product, then an invoice and then finally collects a payment at a later time?

Answer: • Cash Conversion Cycle

Question:* True of False? An irrevocable letter of credit can be changed as long as one of the parties involved agree to a change.

Answer: • False

Question:* What is an assumed receipt?

Answer: • It is an assumption that goods have been received when an invoice appears in AP

Question:* Do the rebates procurement card vendors offer exceed discount offers for prompt payment?

Answer: • Yes. Because payment is made electronically.

Question:* When there is an over-shipment of a product to the receiver, what can happen to the invoice?

Answer: • It can be short-paid

Question:* What is an example of an issue with evaluated receipt settlement?

Answer: • There can be too many rejections and disputes, making ERI more tedious than it should be

Question:* Your company accidentally sent a duplicate payment. Where is this money sent?

Answer: • To a miscellaneous income account, which will be attended to when it is reconciled

Question:* True or false? It is always advantageous to pay an invoice as quickly as possible.

Answer: • False

Question:* What is one of the fastest growing mediums for fraud?

Answer: • Checks

Question:* If the three-way-match is off by a negligible dollar amount, what happens in Accounts Payable?

Answer: • The discrepancy is forgone and the invoice is simply paid to save time

Question:* When is the best time to enact fraud detection measures?

Answer: • During employee vacation

Question:* Accounts payable can usually be broken down into which two categories?

Answer: • Expense payables and trade payables

Question:* True or False? Entertainment and travel is generally a part of accounts payable.

Answer: • True

Question:* When a rush check request comes in, what happens to the accounts payable department?

Answer: • It has to stop entirely and attend to the rushed check.

Question:* Which automatic clearing house code refers to a consumer's cross border payments?

Answer: • IAT

Question:* What types of checks do corporations typically use?

Answer: • Continuous-format, or individual.

Question:* In an irrevocable letter of credit, who is known as the beneficiary?

Answer: • Seller

Question:* True or false? Another name for accounts payable is notes payable liabilities.

Answer: • False

Question:* What design security measure does a check printer use to print the word, “void” on a check?

Answer: • A pantograph

Question:* If AP does not receive a reply from a purchaser, and pays the invoice, what is happening?

Answer: • Negative assurance

Question:* What is an exceptionally beneficial tool that nearly eliminates the need for AP approvals?

Answer: • Escalating approvals

Question:* True or False? A three-way match is a good way to protect a companies liabilites.

Answer: • False



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