Business Services Business Services Finance & Accounting

Question 1

What is accounts payable (AP) in a business services context?

Accepted Answer

Money the business owes to suppliers and vendors

Answer

Money owed to the business by customers

Answer

Employee salary expenses

Answer

Long-term bank loans

Question 2

Which financial document summarizes a company's revenues and expenses over a specific period?

Accepted Answer

Income statement

Answer

Balance sheet

Answer

Cash flow statement

Answer

Statement of retained earnings

Question 3

What does 'Days Sales Outstanding' (DSO) measure?

Accepted Answer

Average number of days to collect payment after a sale

Answer

Average number of days inventory is held

Answer

Number of days a project runs over deadline

Answer

Duration of employee onboarding

Question 4

In financial services outsourcing, what is 'procure-to-pay' (P2P)?

Accepted Answer

An end-to-end process from purchasing goods to making payment to vendors

Answer

A marketing funnel model

Answer

A customer loyalty program

Answer

A revenue recognition standard

Question 5

Which US accounting standard do publicly traded US companies use for financial reporting?

Accepted Answer

GAAP

Answer

IFRS

Answer

FASB-only rules

Answer

SOX

Question 6

What is the purpose of a three-way match in accounts payable?

Accepted Answer

Verifying the purchase order, goods receipt, and vendor invoice agree before payment

Answer

Matching three bank accounts during reconciliation

Answer

Comparing three vendors' prices

Answer

Reconciling three months of payroll