CS Financial & Accounting Basics Flashcards

A secretary asked to 'reconcile petty cash' should:

Answer: Compare receipts and remaining cash to the fund's opening balance

Petty cash reconciliation involves adding up all receipts and remaining cash to confirm the total equals the fund's original amount.

What is the role of a W-4 form in the United States?

Answer: Tells the employer how much federal income tax to withhold from paychecks

A W-4 form is completed by employees to indicate their tax withholding preferences so the employer withholds the correct federal income tax.

Which document would a secretary use to verify that a vendor's invoice matches the original order?

Answer: Purchase order

Matching a vendor invoice against the purchase order ensures the goods or services billed were actually authorized and ordered.

What is 'accounts payable'?

Answer: Money the company owes to vendors or suppliers

Accounts payable represents the company's short-term obligations to pay suppliers for goods or services already received.

A 'fiscal year' differs from a calendar year in that it:

Answer: Can begin and end on any date chosen by the organization

A fiscal year is any 12-month accounting period that a company chooses, which may or may not coincide with January–December.

When processing incoming invoices, which is the BEST first step for a secretary?

Answer: Record the invoice in the accounts payable log and verify it against the PO

Logging and verifying invoices against purchase orders ensures accuracy and prevents duplicate or unauthorized payments.