EAC EAC Financial Administration & Budget Management 2

Question 1

What is the purpose of a 'purchase order (PO)' in a company's procurement process?

Accepted Answer

To formally authorize a vendor to provide specified goods or services at an agreed price

Answer

A purchase order is a formal document that authorizes a vendor transaction, establishes agreed terms, and creates an official record for accounts payable processing.

Question 2

An executive asks their assistant to track travel and entertainment expenses for a quarterly review. Which Excel feature would be most useful for summarizing this data?

Accepted Answer

PivotTable

Answer

PivotTables allow executive assistants to dynamically summarize, sort, and analyze large expense datasets by category, date, or department with ease.

Question 3

What does 'accounts payable' refer to in an organizational context?

Accepted Answer

Money the organization owes to suppliers or vendors for goods and services received

Answer

Accounts payable represents the organization's short-term obligations to vendors and suppliers for goods and services already received but not yet paid.

Question 4

When an executive assistant is given signatory authority on a corporate credit card, what is the most important financial control to maintain?

Accepted Answer

Keep every receipt and submit detailed expense reports matching each charge

Answer

Maintaining documentation for every charge and submitting accurate expense reports ensures transparency, compliance, and protection against fraud or policy violations.

Question 5

What is a 'cost center' in corporate budgeting terminology?

Accepted Answer

A department or unit that incurs costs but does not directly generate revenue

Answer

A cost center is a functional unit within an organization whose expenses are tracked separately for budget management purposes, though it doesn't directly produce revenue.

(EAC) Executive Assistant Certification Practice Test

(EAC) Executive Assistant Certification Practice Test

EAC EAC Financial Administration & Budget Management 2