CAPA Expense Management Flashcards

What is an employee expense report in the context of accounts payable?

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.

What is the IRS standard mileage rate used for in expense management?

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.

What is a corporate purchasing card (P-card) primarily used for?

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.

Which control helps prevent personal expenses from being submitted as business expenses?

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.

What is a 'per diem' in business expense management?

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.

Which expense policy requires employees to provide documentation supporting their reimbursement requests?

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.