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

A three-way match confirms that the PO, receiving report, and invoice all agree on quantity and price before authorizing payment.

Question 2

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

Accepted Answer

Straight-line depreciation

Answer

Straight-line depreciation divides the asset's cost evenly across its useful life, producing a constant annual expense.

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

A cost-benefit analysis quantifies all costs and benefits in monetary terms to determine whether the investment is justified.

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

Accounts receivable is a current asset representing amounts customers owe the company for delivered goods or services.

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

Reconciliation begins by matching each statement transaction to its receipt to verify accuracy before any payment or dispute.

CAP - Certified Administrative Professional Practice Test