Accounts Payable MCQs (Chapterwise Multiple Choice Questions)

Excess payment made to the supplier will appear as a _____..

debit balance in the supplier's account.

credit balance in the supplier's account.

debit balance in the customer's account

credit balance in the customer's account.

Answer & Explanation

Correct Answer: credit balance in the supplier's account.

Note: This Question is unanswered, help us to find answer for this one

Among the items reported on Cord, Inc.'s income statement for the year ended December 31, 2007 were the following:

Amortization of goodwill acquired in 1992 $10,000
Insurance premium on the life of an officer. $5,000
Cord is the owner and beneficiary.
Temporary differences amount to:

$0

$5,000

$10,000

$15,000

Answer & Explanation

Correct Answer: $0

Note: This Question is unanswered, help us to find answer for this one

When an employer makes an end-of-period adjusting entry with a debit to the Supplies Expense, the credit entry is made to:

Accounts Payable.

Supplies

Cash

Retained Earnings.

Answer & Explanation

Correct Answer: Supplies

Note: This Question is unanswered, help us to find answer for this one

What are procurement cards used for?

They are used to take record of late payments

They are cards that purchasers can trade in lieu of cash

They are used for the purposes of smooth tax payment

They are similar to credit cards, issued only for the purpose of procurement

Answer & Explanation

Correct Answer: They are similar to credit cards, issued only for the purpose of procurement

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What is the definition of a company's current ratio?

Current assets divided by current liablities

Current assets minus current liablities

Current liabilities minus current assets

Current liabilities divided by current assets

Answer & Explanation

Correct Answer: Current assets divided by current liablities

Note: This Question is unanswered, help us to find answer for this one

What level of detail should invoices contain?

Summary, only the total due

Totals by item

Totals by date

Specific details - dates, quantities, individual pricing

Answer & Explanation

Correct Answer: Specific details - dates, quantities, individual pricing

Note: This Question is unanswered, help us to find answer for this one

Is a sales tax return required to be filed even if the sales are equal to zero?

Yes

No

Depends on the expenditure made

Varies from state to state.

Answer & Explanation

Correct Answer: Yes

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$1,000 worth of supplies are purchased on account. What is the Journal Entry to be posted?

Dr A/P account and Cr Supplies account

Dr Purchase account and Cr A/P account

Dr Supplies account and Cr A/P account

Dr A/P account and Cr Purchase account

Answer & Explanation

Correct Answer: Dr Supplies account and Cr A/P account

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What is matched when using 4-way matching?

Purchase Order, invoice, Services, Goods

Purchase Order, Packing Slip, Quote, Service Orders

Purchase order, Receipts, Invoice, Check

Purchase Order, Receipts, Inspection, Invoice

Answer & Explanation

Correct Answer: Purchase Order, Receipts, Inspection, Invoice

Note: This Question is unanswered, help us to find answer for this one

Do the rebates procurement card vendors offer exceed discount offers for prompt payment?

No. Procurement card vendors have to pay a tax so the competition is equal.

No. Because payment is made manually.

No. Electronic payment takes longer than traditional payment.

Yes. Because payment is made electronically.

Answer & Explanation

Correct Answer: Yes. Because payment is made electronically.

Note: This Question is unanswered, help us to find answer for this one

Accounts Payable Quick Quiz

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Accounts Payable MCQ

Accounts Payable Quick Quiz

Excess payment made to the supplier will appear as a _____..

Among the items reported on Cord, Inc.'s income statement for the year ended December 31, 2007 were the following:Amortization of goodwill acquired in 1992 $10,000 Insurance premium on the life of an officer. $5,000Cord is the owner and beneficiary.Temporary differences amount to:

When an employer makes an end-of-period adjusting entry with a debit to the Supplies Expense, the credit entry is made to:

What are procurement cards used for?

What is the definition of a company's current ratio?

What level of detail should invoices contain?

Is a sales tax return required to be filed even if the sales are equal to zero?

$1,000 worth of supplies are purchased on account. What is the Journal Entry to be posted?

What is matched when using 4-way matching?

Do the rebates procurement card vendors offer exceed discount offers for prompt payment?

Among the items reported on Cord, Inc.'s income statement for the year ended December 31, 2007 were the following:

Amortization of goodwill acquired in 1992 $10,000
Insurance premium on the life of an officer. $5,000
Cord is the owner and beneficiary.
Temporary differences amount to: