CAP Financial Management and Budgeting 1

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

Zero-based budgeting starts from a zero baseline each period, requiring justification for every expenditure.

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

Standard expense policy removes non-reimbursable items and processes the remaining valid expenses.

Question 3

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

Accepted Answer

Income statement (P&L)

Answer

An income statement (profit and loss statement) reports revenues and expenses over a period to show net income or loss.

Question 4

What is petty cash used for in an office environment?

Accepted Answer

Covering small, incidental day-to-day office expenses

Answer

Petty cash is a small reserve fund used to pay minor, routine expenses without issuing a formal check or payment.

Question 5

A purchase order (PO) primarily serves to:

Accepted Answer

Authorize a vendor to deliver goods/services at agreed terms

Answer

A purchase order is a formal document authorizing a vendor to supply specified goods or services at agreed pricing and terms.

CAP - Certified Administrative Professional Practice Test

CAP - Certified Administrative Professional Practice Test

CAP Financial Management and Budgeting 1