Accounts Payable Multiple Choice Questions
1. Reconciliation of materials received and prices in the receiving depart- ment is commonly referred to as:
a. ERS
b. EDI
c. JIT
d. IVR
2. An ACH debit
a. Allows the seller to debit the purchaser’s bank account
b. Allows the seller to credit the purchaser’s bank account
c. Allows the purchaser to debit the seller’s bank account
d. Allows the purchaser to credit the seller’s bank account
3. A clean desk policy in accounts payable is a best practice when it means that:
a. All invoices that have been received have been paid
b. All invoices that have been received have been reviewed and sched- uled for payment
c. All invoices that have been received have been reviewed and sent out for approvals. They will be paid if and when the approvals are given.
d. All invoices and other papers have been filed away or put in a draw somewhere.
4. After the check is printed it should be:
a. Returned to the person requesting the check
b. Return to the person who authorized the issuance
c. Mailed to the intended recipients
d. Sent to the Bank
5. A design that is not clearly visible until the check is copied is called a:
a. Watermark
b. Void Pantograph
c. Micro printing
d. Special Ink
6. Since invoices are received in all different sizes, shapes and colors,
the most critical aspect of a document imaging system is:
a. Storage
b. Indexing
c. Scanning
d. Retrieval
7. Which of the following is an acceptable petty cash practice?
a. Cashing a post-dated check for the company’s treasurer
b. Accepting an IOU from the company’s controller
c. Advancing funds to the company’s executive vice president for a golfing outing
d. Reimbursing the credit manager $20 for pizza when he presented a receipt authorized by his boss.
8. Which of the following forms is submitted by the employee to establish federal income tax withholding:
A. Form W-2
B. Form W-3
C. Form W-4
D. Form W-9
9. A nonexempt employee works 37 hours per week at a regular monthly salary of $2,000.00. Under the FLSA, calculate the employee’s regular rate of pay:
A. $11.54
B. $12.47
C. $12.50
D. $13.52
10. The base amount used for the calculation of federal income tax is:
A. gross earnings
B. disposable earnings
C. net income
D. taxable wages
11. An employee has total YTD wages in the amount of $68,000.00. Calculate the gross-up on $2,000.00. There is no state income tax withholding.
A. $2,119.77
B. $2,666.67
C. $2,883.92
D. $2,969.56
12. Which of the following forms is used by an employer to report quarterly wages and federal payroll tax withholdings and deposits?
A. 940
B. 941
C. 1096
D. W-2
13. Which of the following entries would be posted as a debit?
A. Decrease to an expense account
B. Increase to a revenue account
C. Increase to an expense account
D. Decrease to an asset account
14. The primary purpose of written departmental procedures is to:
A. provide solutions to employee problems
B. script responses for customer service improvements
C. facilitate the organizational change process
D. document processes for uniform application of policies
15. An employee is provided a parking space on the employee’s premises. The FMV of the space is $200. This is referred to as a:
A. De minimis fringe benefit.
B. Qualified transportation fringe benefit.
C. No-additional-cost fringe benefit.
D. Qualified employee discount.
16. A nonexempt employee is paid $9.50 per hour and recorded the following hours: Sun Mon Tues Wed Thurs Fri Sat 0 (sick) 10 8 8 8 0 Company policy allows pay for sick days at 8 hours per day. Under the FLSA, calculate the employee’s gross weekly pay.
A. $323.00
B. $399.00
C. $408.50
D. $418.00
17. What types of wages are excluded when calculating the regular rate?
A. Production bonus.
B. Shift differential.
C. Paid time not worked.
D. Premium pay less than one and one-half times the base
rate.
18. When setting up a new payroll system, testing is part of:
A. RFP preparation.
B. Needs analysis.
C. Implementation.
D. Evaluation.
19. Pre-tax contributions to a cafeteria plan for medical insurance are exempt from:
A. Social security, Medicare, FIT, and FUTA only.
B. Social security, Medicare, and FIT only.
C. Social security, Medicare, and FUTA only.
D. FIT and FUTA only.
20. In a state that is not credit reduction, an employee’s current pay is $1,300.00. YTD wages are $5,895.00. Calculate the FUTA tax the employer must accrue if all taxes are paid timely and in full.
A. $6.63
B. $7.80
C. $66.30
D. $78.00
21. Payments to non-corporate independent contractors for services rendered MUST be reported to the IRS if payments exceed:
A. $600.00 in the calendar year.
B. $600.00 in any 12-month period.
C. $1,000.00 in the calendar year.
D. $1,000.00 in any 12-month period.
22. All of the following duties should be included in the job description of a payroll department employee EXCEPT:
A. Data entry of payroll input.
B. Reviewing source documents for proper authorization.
C. Reconciliation of payroll bank accounts.
D. Distribution of payroll-related reports .
23. Taxes advanced by an employer on behalf of employees must be recovered from employees by no later than:
A. January 1 of the following year.
B. January 31 of the following year.
C. March 31 of the following year.
D. April 1 of the following year.
24.All of the following accounts are asset accounts EXCEPT:
A. Cash.
B. Accounts receivable.
C. Inventory.
D Accounts payable.
Answers:
1-B 2-B 3-C 4-C 5-A
6-A 7-A 8-C 9-D 10-D
25. A U.S. company has an account payable of £10,000 for a British company. The current spot rate for the pound is $2.01 and the three-month forward rate for the pound is $2.02. What will be the approximate value of the account payable in dollars if the company make a forward hedge?
A. $20,200
B. $20,100
C. $20,000
D. $20,300
E. $20,500
26. A U.S. company has an account payable of £10,000 for a British company. The current spot rate for the pound is $2.01, the 3-month forward rate for the pound is $2.02, the 3-month interest rate in the United States is 2%, and the 3-month interest rate in Britain is 3%. What will be the approximate value of the account payable in dollars if the company makes a money-market hedge?
A. $20,219
B. $19,999
C. $19,905
D. $19,515
E. $18,800