COA COA Financial Management & Budgeting 2

Question 1

Variance analysis in budgeting compares:

Accepted Answer

Actual results against budgeted figures

Answer

Variance analysis measures the difference between actual financial performance and the budgeted or planned figures to identify areas needing attention.

Question 2

Which financial control practice involves comparing the company's bank statement to its own internal cash records?

Accepted Answer

Bank reconciliation

Answer

Bank reconciliation is the process of matching the company's internal cash ledger with the bank statement to identify discrepancies.

Question 3

An office administrator processing expense reports should verify that all claims include:

Accepted Answer

Receipts and a business purpose for each expense

Answer

Proper expense report processing requires original receipts and a documented business purpose to ensure the expense is legitimate and reimbursable.

Question 4

Accounts receivable represents money:

Accepted Answer

Owed to the company by its customers

Answer

Accounts receivable is an asset on the balance sheet representing amounts customers owe the company for goods or services already delivered.

Question 5

Which term describes the process of spreading the cost of a long-term asset over its useful life?

Accepted Answer

Depreciation

Answer

Depreciation allocates the cost of a tangible fixed asset (such as office equipment) over its estimated useful life as an expense.

(COA) Certified Office Administration Practice Test

(COA) Certified Office Administration Practice Test

COA COA Financial Management & Budgeting 2