COA COA Financial Management & Budgeting 4

Question 1

Which budgeting approach starts from zero each period, requiring every expense to be justified regardless of prior budgets?

Accepted Answer

Zero-based budgeting

Answer

Zero-based budgeting requires justification for all expenditures from scratch each period, unlike incremental budgeting which adjusts prior figures.

Question 2

An office manager receives an invoice dated July 15 with net-30 terms. What is the payment due date?

Accepted Answer

August 15

Answer

Net-30 terms mean payment is due 30 days from the invoice date, so July 15 + 30 days = August 14, but since August 14 is the 30th day, the due date is August 14.

Question 3

Which financial statement shows a company's revenues and expenses over a specific time period?

Accepted Answer

Income statement

Answer

The income statement (profit and loss statement) reports revenues and expenses over a defined accounting period to show net income or loss.

Question 4

A petty cash fund has a $200 limit. After reimbursements totaling $163, how much cash should remain in the fund?

Accepted Answer

$37

Answer

The remaining cash equals the fund limit minus total disbursements: $200 - $163 = $37.

Question 5

What does 'accounts receivable' represent on a company's balance sheet?

Accepted Answer

Money owed to the company by customers

Answer

Accounts receivable represents amounts owed to the business by customers for goods or services already delivered but not yet paid.

(COA) Certified Office Administration Practice Test

(COA) Certified Office Administration Practice Test

COA COA Financial Management & Budgeting 4