CAPA CAPA Expense Management 1 — Questions and Answers
Question 1: What is an employee expense report in the context of accounts payable?
- A document vendors use to submit invoices
- A form employees submit to request reimbursement for business expenses (Correct answer)
- A monthly financial summary prepared by AP
- A record of company asset purchases
Correct answer: A form employees submit to request reimbursement for business expenses
An employee expense report documents business expenses paid personally by an employee and is submitted to AP for reimbursement processing.
Question 2: What is the IRS standard mileage rate used for in expense management?
- Calculating depreciation on company vehicles
- Reimbursing employees for business use of personal vehicles (Correct answer)
- Taxing employee vehicle benefits
- Tracking fleet fuel costs
Correct answer: Reimbursing employees for business use of personal vehicles
The IRS standard mileage rate lets companies reimburse employees for business use of personal vehicles at a set per-mile rate without requiring itemized fuel or maintenance receipts.
Question 3: What is a corporate purchasing card (P-card) primarily used for?
- Making vendor wire transfers
- Purchasing low-value items without a formal purchase order (Correct answer)
- Paying employee salaries
- Issuing customer refunds
Correct answer: Purchasing low-value items without a formal purchase order
P-cards allow employees to purchase low-value items directly without creating a purchase order, reducing administrative burden for small and routine purchases.
Question 4: Which control helps prevent personal expenses from being submitted as business expenses?
- Three-way match
- Manager approval of expense reports (Correct answer)
- Vendor onboarding process
- AP aging analysis
Correct answer: Manager approval of expense reports
Requiring manager approval ensures that someone with knowledge of the employee's business activities reviews and authorizes each expense reimbursement request.
Question 5: What is a 'per diem' in business expense management?
- A fixed daily allowance for meals and lodging during business travel (Correct answer)
- A per-transaction limit on corporate card spending
- A daily interest charge on overdue invoices
- A recurring vendor payment schedule
Correct answer: A fixed daily allowance for meals and lodging during business travel
A per diem is a daily allowance covering meals and incidental expenses during business travel, simplifying expense reporting by eliminating the need for individual receipts.
Question 6: Which expense policy requires employees to provide documentation supporting their reimbursement requests?
- Receipt requirement policy (Correct answer)
- Vendor approval policy
- Invoice coding policy
- Payment terms policy
Correct answer: Receipt requirement policy
A receipt requirement policy mandates that employees provide original receipts for expenses above a minimum threshold to verify the legitimacy and amount of each claim.
CAPA CAPA Expense Management 1
What is an employee expense report in the context of accounts payable?