CAP Financial Management and Budgeting

Question 1

Which budgeting approach requires all expenses to be justified from zero each budget period, rather than using the prior period as a baseline?

Accepted Answer

Zero-based budgeting

Answer

Incremental budgeting

Answer

Rolling budget

Answer

Capital budgeting

Question 2

An administrative professional submits an expense report that includes a non-reimbursable personal charge. According to standard expense policy, what should happen?

Accepted Answer

The personal charge is removed and the remainder is processed

Answer

The entire report is rejected

Answer

The charge is split between employer and employee

Answer

The manager approves it as a one-time exception

Question 3

Which financial document summarizes revenues, expenses, and net income over a specific period?

Accepted Answer

Income statement (P&L)

Answer

Balance sheet

Answer

Cash flow statement

Answer

Statement of retained earnings

Question 4

What is petty cash used for in an office environment?

Accepted Answer

Covering small, incidental day-to-day office expenses

Answer

Paying monthly vendor invoices

Answer

Reimbursing executive travel costs

Answer

Purchasing major office equipment

Question 5

A purchase order (PO) primarily serves to:

Accepted Answer

Authorize a vendor to deliver goods/services at agreed terms

Answer

Record payment of an invoice

Answer

Document a shipment receipt

Answer

Request a refund from a supplier

Question 6

Which term describes the difference between actual spending and the planned budget amount?

Accepted Answer

Variance

Answer

Depreciation

Answer

Accrual

Answer

Amortization