Robert Half Assessment Test Accounts Payable and Receivable 5

Question 1

What is the effect on the financial statements when an invoice is accrued at month-end but not yet paid?

Accepted Answer

Expenses increase and liabilities increase

Answer

Assets increase and liabilities increase

Answer

Expenses decrease and equity increases

Answer

Only the balance sheet is affected; no income statement impact

Question 2

Which of the following is considered a best practice to prevent AP fraud?

Accepted Answer

Segregating the duties of invoice approval, payment processing, and bank reconciliation

Answer

Allowing one employee to both approve invoices and issue payments

Answer

Paying all invoices the same day they are received

Answer

Keeping vendor master file updates unrestricted to all AP staff

Question 3

A vendor offers terms of 1/15, net 60. What is the annualized cost of NOT taking the early-payment discount?

Accepted Answer

Approximately 16.2%

Answer

Approximately 7.3%

Answer

Approximately 1%

Answer

Approximately 60%

Question 4

What is a 'remittance advice' in the context of accounts payable?

Accepted Answer

Information a buyer sends with a payment specifying which invoices are being paid

Answer

A document the vendor sends listing overdue balances

Answer

A bank notice that a check has cleared

Answer

An internal AP report showing total amounts owed by vendor

Question 5

Under accrual accounting, when is revenue recognized for a credit sale?

Accepted Answer

When the goods or services are delivered to the customer

Answer

When cash is collected from the customer

Answer

When the customer places the order

Answer

When the invoice is mailed to the customer

Question 6

Which AP document provides evidence that ordered goods were actually received in the correct quantity and condition?

Accepted Answer

Receiving report

Answer

Purchase order

Answer

Vendor invoice

Answer

Payment voucher

Question 7

A company has $180,000 in Accounts Receivable and its DSO is 36 days. What is its approximate daily credit sales figure?

Accepted Answer

$5,000 per day

Answer

$2,500 per day

Answer

$6,480,000 per year

Answer

$6,000 per day