Free CPB Accounts Payable & Receivable Management Questions and Answers

Question 1

What is the main purpose of accounts payable?

Accepted Answer

Tracking money owed to suppliers

Answer

Tracking money owed by customers

Answer

Calculating payroll taxes

Answer

Managing employee benefits

Question 2

What is an invoice?

Accepted Answer

A request for payment

Answer

A payment receipt

Answer

A purchase order

Answer

A financial statement

Question 3

Which document authorizes a company to pay a supplier?

Accepted Answer

Purchase order

Answer

Invoice

Answer

Receipt

Answer

Bill of lading

Question 4

What is accounts receivable?

Accepted Answer

Money owed to the company

Answer

Money owed to suppliers

Answer

Payroll expenses

Answer

Tax liabilities

Question 5

What is the effect of late payment on accounts payable?

Accepted Answer

Damages supplier relationships

Answer

Improves credit rating

Answer

Increases revenue

Answer

Lowers expenses

Question 6

Which document confirms receipt of goods from a supplier?

Accepted Answer

Packing slip

Answer

Invoice

Answer

Purchase order

Answer

Payment voucher

Question 7

What is a common method to manage accounts receivable?

Accepted Answer

Send invoices promptly

Answer

Delay invoicing

Answer

Ignore overdue accounts

Answer

Reduce sales

Question 8

What does 'aging of accounts receivable' mean?

Accepted Answer

Grouping receivables by due dates

Answer

Recording new sales

Answer

Paying suppliers

Answer

Processing payroll

Question 9

Why is it important to reconcile accounts payable regularly?

Accepted Answer

To prevent errors and fraud

Answer

To avoid paying bills

Answer

To increase liabilities

Answer

To delay payments