CAP CAP Accounts Payable and Receivable 1

Question 1

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

Accepted Answer

Invoice

Answer

An invoice is the vendor's formal request for payment detailing the goods or services provided and the amount owed.

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

The net due date is the deadline by which payment must be made to avoid late fees or damaged vendor relationships.

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

2/10 Net 30 means the buyer earns a 2% discount by paying within 10 days; otherwise the full invoice is due 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

A purchase order (PO) is issued by the buyer to authorize and document a transaction before goods or services are received.

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

An overpayment creates a liability to the customer, so Cash is debited and a customer credit balance (liability) is credited.

(CAP) Certified Accounting Paraprofessional Practice Test