CAP Accounting Paraprofessional Preparation and Exam Resources 4

Question 1

Which of the following is considered the best method to create a study schedule for the CAP exam?

Accepted Answer

Assess weak areas first, then distribute study time proportionally

Answer

Study all topics in the final week before the exam

Answer

Allocate equal time to all sections regardless of difficulty

Answer

Focus only on topics from the most recent exam administration

Question 2

What does the accounting equation state?

Accepted Answer

Assets = Liabilities + Owner's Equity

Answer

Revenue - Expenses = Net Income

Answer

Debits = Credits + Cash

Answer

Net Income = Assets - Liabilities

Question 3

When preparing for the CAP tax section, which type of business entity is taxed at the individual owner's personal tax rate?

Accepted Answer

Both B and C

Answer

C corporation

Answer

S corporation

Answer

Sole proprietorship

Question 4

In QuickBooks, what is the function of the 'Chart of Accounts'?

Accepted Answer

A complete list of all accounts used to categorize transactions

Answer

A list of all customers and their account balances

Answer

A report showing all outstanding invoices

Answer

A summary of payroll transactions by employee

Question 5

Which source document initiates the accounts payable process?

Accepted Answer

Purchase order or vendor invoice

Answer

Customer invoice

Answer

Bank statement

Answer

Payroll register

Question 6

A candidate wants to maintain their CAP certification. What is typically required?

Accepted Answer

Earning continuing education credits (CPE) each year

Answer

Retaking the full exam every 3 years

Answer

Submitting quarterly work logs to NACPB

Answer

Paying a renewal fee with no education requirement

Question 7

In payroll processing, what does 'gross pay' refer to?

Accepted Answer

Total earnings before any deductions are applied

Answer

Employee take-home pay after all deductions

Answer

Only the base salary excluding overtime

Answer

Net pay plus employer payroll taxes