CAP Financial Management and Budgeting 2

Question 1

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

Accepted Answer

Verifying that the purchase order, receiving report, and vendor invoice agree before payment

Answer

Matching three vendors for the same purchase

Answer

Reconciling three months of bank statements

Answer

Comparing three budget scenarios

Question 2

Which depreciation method allocates an equal expense amount each year over an asset's useful life?

Accepted Answer

Straight-line depreciation

Answer

Double declining balance

Answer

Units of production

Answer

Sum-of-the-years' digits

Question 3

When an admin prepares a cost-benefit analysis for a proposed office renovation, what should the analysis include?

Accepted Answer

All expected costs and all anticipated benefits, expressed in monetary terms

Answer

Only the upfront renovation costs

Answer

The renovation contractor's reference list

Answer

Employee satisfaction scores from prior years

Question 4

What does accounts receivable represent on a company's balance sheet?

Accepted Answer

Money owed to the company by customers for goods or services already delivered

Answer

Money the company owes to suppliers

Answer

Cash held in the company bank account

Answer

Long-term debt obligations

Question 5

An admin is reconciling the office credit card statement. Which step should come first?

Accepted Answer

Match each statement transaction to its corresponding receipt

Answer

Pay the outstanding balance immediately

Answer

Dispute all unrecognized charges

Answer

File the statement without review

Question 6

Which IRS form do U.S. companies use to report non-employee compensation of $600 or more to independent contractors?

Accepted Answer

1099-NEC

Answer

W-2

Answer

W-4

Answer

1040