Free CAPA Management and Compliance Questions and Answers

Question 1

An account payable on the books of the buyer should be an account __________ on the books of the seller.

Accepted Answer

receivable

Answer

payable

Answer

expense

Answer

revenue

Question 2

The Internal Revenue Service form to be issued for amounts paid to independent contractors (that are not corporations) for services provided is __________.

Accepted Answer

Form 1099-NEC

Answer

Form W-2

Answer

Form W-3

Question 3

The Internal Revenue Service form used to request a taxpayer identification number from a vendor is __________.

Accepted Answer

Form W-9

Answer

Form 1096

Answer

Form W-3

Question 4

Under the accrual method of accounting, the expenses that have been incurred but not yet entered as accounts payable should be part of an accrual-type __________ entry.

Accepted Answer

adjusting

Answer

closing

Answer

depreciation

Answer

reversal

Question 5

The amounts accrued at the end of the current accounting period often become the amounts in the __________ entry in the subsequent accounting period.

Accepted Answer

reversing

Answer

closing

Answer

depreciation

Answer

adjusting

Question 6

Paying the insurance premium on December 20 for the six-month period beginning 12 days later should result in a debit balance in the asset account __________ Insurance.

Accepted Answer

Prepaid

Answer

Accrued

Answer

Liability

Answer

Unearned

Question 7

The segregation or separation of duties and the safeguarding of checks are two examples of an important topic known as __________ controls.

Accepted Answer

internal

Answer

external

Answer

financial

Answer

managerial

Question 8

Bills Payable A/c is shown in the balance sheet under the head.

Accepted Answer

Current liabilities

Answer

Provision

Answer

Reserves & Surplus

Answer

Secured loans

Question 9

Which of the following best describes the meaning of ‘Purchases’?

Accepted Answer

Goods bought for resale

Answer

Items bought

Answer

Goods bought on credit

Answer

Goods paid for

Question 10

Which of the following is correct?

Accepted Answer

Profit increases capital

Answer

Profit reduces capital

Answer

Profit does not alter capital

Answer

Capital can only come from profit