CAP CAP Accounts Payable and Receivable

Question 1

What document does a vendor send to a business to request payment for goods or services delivered?

Accepted Answer

Invoice

Answer

Purchase order

Answer

Credit memo

Answer

Remittance advice

Question 2

Which accounts payable term refers to the maximum number of days a company can wait before paying a vendor without penalty?

Accepted Answer

Net due date

Answer

Grace period

Answer

Credit terms

Answer

Payment float

Question 3

What does the credit term '2/10 Net 30' mean?

Accepted Answer

2% discount if paid within 10 days, full amount due in 30 days

Answer

2% discount if paid within 30 days, full amount due in 10 days

Answer

2% penalty if paid after 10 days, due in 30 days

Answer

Pay 2% down in 10 days and remainder in 30 days

Question 4

Which document is used by a buyer to formally request goods or services from a vendor?

Accepted Answer

Purchase order

Answer

Receiving report

Answer

Debit memo

Answer

Bill of lading

Question 5

When a customer overpays an invoice, the correct accounts receivable entry is to:

Accepted Answer

Debit Cash and credit a customer credit/liability

Answer

Debit Accounts Receivable and credit Cash

Answer

Debit Sales Revenue and credit Cash

Answer

Debit Accounts Payable and credit Cash

Question 6

What is the primary purpose of an aging report in accounts receivable?

Accepted Answer

To identify overdue invoices and assess collection risk

Answer

To record new customer invoices

Answer

To calculate sales tax liabilities

Answer

To reconcile bank deposits