Robert Half Assessment Test Accounts Payable and Receivable 2

Question 1

A vendor invoice dated June 1 has terms of 2/10, net 45. If payment is made on June 9, what discount applies?

Accepted Answer

2% discount because payment is within 10 days

Answer

Terms 2/10 mean a 2% discount is available if payment is made within 10 days of the invoice date, and June 9 is 8 days after June 1.

Question 2

Which internal control best prevents duplicate payment of vendor invoices?

Accepted Answer

Matching each invoice to a unique purchase order and receiving report before payment

Answer

Three-way matching (invoice, purchase order, and receiving report) ensures each invoice is legitimate and unique before payment is processed.

Question 3

What does a debit balance in Accounts Payable typically indicate?

Accepted Answer

An overpayment or vendor credit situation

Answer

Accounts Payable normally carries a credit balance; a debit balance suggests the company overpaid a vendor or received a credit memo that has not been offset.

Question 4

A customer has a $5,000 balance with payment terms of net 30. On day 45, the customer has not paid. What is the FIRST step in the collections process?

Accepted Answer

Send a formal past-due notice or make a collection call

Answer

Standard AR collections practice begins with a past-due notice or direct contact to remind the customer and determine the reason for non-payment.

Question 5

What journal entry records the allowance method to recognize estimated bad debt expense?

Accepted Answer

Debit Bad Debt Expense, Credit Allowance for Doubtful Accounts

Answer

Under the allowance method, Bad Debt Expense is debited and the contra-asset Allowance for Doubtful Accounts is credited to recognize estimated uncollectible amounts.

Robert Half Assessment Test Practice Test

Robert Half Assessment Test Practice Test

Robert Half Assessment Test Accounts Payable and Receivable 2