Robert Half Assessment Test Accounts Payable and Receivable 3

Question 1

When a company receives a credit memo from a vendor, what is the correct accounting treatment?

Accepted Answer

Debit Accounts Payable, Credit Purchases Returns and Allowances (or the relevant expense account)

Answer

Debit Cash, Credit Accounts Payable

Answer

Debit Accounts Receivable, Credit Revenue

Answer

Debit Expense, Credit Cash

Question 2

What is the purpose of an AP subledger?

Accepted Answer

To track the detailed balance owed to each individual vendor

Answer

To record all company-wide journal entries

Answer

To reconcile the company's bank account monthly

Answer

To calculate depreciation on fixed assets

Question 3

Which of the following is an example of a cash application in accounts receivable?

Accepted Answer

Posting a customer's check payment against their open invoice

Answer

Sending a new invoice to a customer

Answer

Writing off an uncollectible account

Answer

Issuing a credit memo for a returned product

Question 4

A company uses the percent-of-sales method for estimating bad debts. If credit sales are $800,000 and the historical bad debt rate is 1.5%, what is the bad debt expense?

Accepted Answer

$12,000

Answer

$8,000

Answer

$15,000

Answer

$1,200

Question 5

What does 'net 30' mean on a vendor invoice?

Accepted Answer

Full payment is due within 30 days of the invoice date with no early-pay discount

Answer

A 30% discount if paid within 30 days

Answer

30 days of free credit before interest accrues daily

Answer

The vendor will accept 30 payments in installments

Question 6

Which report is MOST useful for prioritizing daily collection calls in AR?

Accepted Answer

The accounts receivable aging report

Answer

The income statement

Answer

The vendor ledger

Answer

The cash flow forecast

Question 7

What is 'float' in the context of accounts payable check disbursements?

Accepted Answer

The time between when a check is written and when it clears the company's bank account

Answer

The difference between the invoice amount and the discounted payment amount

Answer

A penalty fee charged by vendors for late payment

Answer

The balance remaining in petty cash