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

Accruing an unpaid invoice records the expense on the income statement and creates a corresponding accrued liability on the balance sheet.

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

Segregation of duties ensures no single employee controls the entire payment process, significantly reducing the risk of fraudulent disbursements.

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

Annualized cost = (Discount% / (1 − Discount%)) × (365 / (Net Days − Discount Days)) = (1/99) × (365/45) ≈ 8.19%; the closest standard answer is approximately 8%, but using the simplified formula (1% / 99%) × (365/45) ≈ 8.2%—option B at ~16.2% applies to 2/15 net 45 terms; for 1/15 net 60 the result is ~8.2%.

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 remittance advice accompanies or precedes a payment and tells the vendor exactly which invoices are being settled, facilitating accurate cash application on the vendor's side.

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

Accrual accounting recognizes revenue when performance obligations are satisfied (goods/services delivered), regardless of when cash is received.

Robert Half Assessment Test Practice Test

Robert Half Assessment Test Practice Test

Robert Half Assessment Test Accounts Payable and Receivable 5