CAP Accounting Paraprofessional Skills and Knowledge Covered 2

Question 1

When reconciling a bank statement, which item would appear as an outstanding check on the book side?

Accepted Answer

A check written by the company but not yet cleared the bank

Answer

Outstanding checks are written and recorded by the company but have not yet been processed by the bank.

Question 2

Which inventory costing method assumes the most recently purchased items are sold first?

Accepted Answer

LIFO

Answer

LIFO (Last-In, First-Out) assumes the most recently purchased inventory is sold first.

Question 3

A petty cash fund is established for $200. After replenishment, the cashier should have receipts and cash totaling:

Accepted Answer

Exactly $200

Answer

The petty cash fund is always restored to its established amount, so the total of cash plus receipts always equals $200.

Question 4

Which of the following is an example of a variable cost for a business?

Accepted Answer

Raw materials used in production

Answer

Raw materials vary directly with production volume, making them a classic variable cost.

Question 5

Accounts receivable turnover is calculated as:

Accepted Answer

Net credit sales divided by average accounts receivable

Answer

Accounts receivable turnover = Net Credit Sales ÷ Average Accounts Receivable, measuring how efficiently a firm collects receivables.

(CAP) Certified Accounting Paraprofessional Practice Test