CAPA CAPA Financial Reporting 2

Question 1

What is the purpose of a three-way match in AP financial reporting?

Accepted Answer

To match invoice, purchase order, and receiving report

Answer

A three-way match verifies that the purchase order, receiving report, and vendor invoice all agree before authorizing payment to a vendor.

Question 2

Which AP KPI measures the percentage of invoices processed without manual intervention?

Accepted Answer

Straight-Through Processing Rate

Answer

Straight-through processing rate measures the percentage of invoices processed automatically without manual intervention or correction.

Question 3

In accrual accounting, when should an AP expense be recognized?

Accepted Answer

When goods or services are received

Answer

Under accrual accounting, expenses are recognized when goods or services are received, not when payment is made.

Question 4

What is a 'debit memo' in accounts payable?

Accepted Answer

A document reducing the amount owed to a vendor

Answer

A debit memo reduces the amount owed to a vendor, typically issued due to returned goods, defective products, or billing errors.

Question 5

What is the purpose of a chart of accounts in AP financial reporting?

Accepted Answer

To categorize and code transactions to the correct GL accounts

Answer

A chart of accounts provides a standardized coding system ensuring all AP transactions are recorded in the correct general ledger accounts.

CAPA - Certified Accounts Payable Associate Practice Test