SOP Financial SOP 2

Question 1

What is the primary purpose of a financial SOP for accounts payable?

Accepted Answer

To ensure invoices are processed accurately and on time

Answer

Accounts payable SOPs standardize the process of verifying, approving, and paying vendor invoices consistently and on schedule.

Question 2

A three-way match in accounts payable compares which three documents?

Accepted Answer

Purchase order, receiving report, and vendor invoice

Answer

A three-way match verifies that the purchase order, the goods receiving report, and the vendor invoice all agree before payment is authorized.

Question 3

Which control is most effective at preventing duplicate invoice payments?

Accepted Answer

Assigning unique invoice numbers and checking them against a payment log

Answer

Logging unique invoice numbers and querying them before processing prevents the same invoice from being paid more than once.

Question 4

Under a financial SOP, who typically has authority to approve a capital expenditure exceeding $50,000?

Accepted Answer

Senior leadership or the CFO, per the delegation of authority matrix

Answer

Delegation of authority matrices define approval thresholds, requiring higher-level sign-off for larger expenditures to maintain proper financial controls.

Question 5

What does 'net 30' mean in a vendor payment terms SOP?

Accepted Answer

Payment is due within 30 days of the invoice date

Answer

Net 30 is a standard trade credit term meaning the buyer must pay the full invoice balance within 30 calendar days of the invoice date.

SOP - Standard Operating Procedures Practice Test

SOP - Standard Operating Procedures Practice Test

SOP Financial SOP 2