CAP Accounting Paraprofessional Preparation and Exam Resources 3 — Questions and Answers
Question 1: How many sections does the CAP exam typically consist of?
- 1 section covering all topics
- 2 sections: theory and practical
- 4 sections aligned with core competency areas (Correct answer)
- 6 sections covering individual accounting topics
Correct answer: 4 sections aligned with core competency areas
The CAP exam is structured around four core competency areas: Accounting, Payroll, QuickBooks, and Tax.
Question 2: What is the passing score threshold commonly required for the CAP exam sections?
- 60%
- 70%
- 75% (Correct answer)
- 80%
Correct answer: 75%
Candidates must typically score 75% or higher on each CAP exam section to earn a passing grade.
Question 3: A candidate fails one section of the CAP exam. What is the typical retake policy?
- They must retake all sections
- They may retake only the failed section after a waiting period (Correct answer)
- They are permanently disqualified
- They must complete additional coursework before retaking any section
Correct answer: They may retake only the failed section after a waiting period
Candidates who fail a section may retake only that specific failed section, and sections already passed remain valid.
Question 4: In the context of CAP exam preparation, what does 'accrual basis accounting' mean?
- Revenue and expenses are recorded when cash is received or paid
- Revenue is recorded when earned and expenses when incurred, regardless of cash flow (Correct answer)
- Only cash transactions are recorded
- Transactions are recorded at year-end only
Correct answer: Revenue is recorded when earned and expenses when incurred, regardless of cash flow
Accrual basis accounting records revenues when earned and expenses when incurred, regardless of when cash actually changes hands.
Question 5: Which depreciation method allocates equal expense amounts each year over an asset's useful life?
- Double-declining balance
- Units of production
- Straight-line depreciation (Correct answer)
- Sum-of-the-years' digits
Correct answer: Straight-line depreciation
Straight-line depreciation spreads the cost of an asset evenly over its useful life, resulting in equal annual depreciation expense.
Question 6: For the CAP exam's payroll section, which federal tax form is used to report annual wages and withholdings to employees?
- Form 941
- Form W-2 (Correct answer)
- Form 1099-NEC
- Form W-4
Correct answer: Form W-2
Form W-2 is provided by employers to employees annually, summarizing wages paid and taxes withheld for the year.
Question 7: What is the primary purpose of the QuickBooks section of the CAP exam?
- To test advanced ERP system configuration skills
- To assess proficiency in using accounting software for bookkeeping tasks (Correct answer)
- To evaluate ability to build custom accounting software
- To test programming skills in financial applications
Correct answer: To assess proficiency in using accounting software for bookkeeping tasks
The QuickBooks section tests candidates' ability to use accounting software for common bookkeeping functions like invoicing, payroll, and reporting.
CAP Accounting Paraprofessional Preparation and Exam Resources 3
How many sections does the CAP exam typically consist of?