Accounts Payable (Practice Quiz)

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If you have difficulty answering the following questions, learn more about this topic by reading our Accounts Payable (Explanation).


  1. 1. The general ledger account Accounts Payable is a current
    __________
    liability
    account.
  2. 2.

    A __________ balance is typical for Accounts Payable.

    Debit
    Wrong.
    Credit
    Right!
  3. 3.

    The balance in Accounts Payable is decreased with a __________ entry.

    Debit
    Right!
    Credit
    Wrong.
  4. 4. An account payable on the books of the buyer should be an account
    __________
    receivable
    on the books of the seller.
  5. 5. Accounts payable are also known as
    __________
    trade
    payables.
  6. 6. PO is the abbreviation for
    __________
    purchase order
    __________
    purchase order
    .
  7. 7.

    Suppliers are also referred to as __________.

    Vendors
    Right!
    Debtors
    Wrong.
  8. 8. A form or record sometimes used to assemble the documentation and approvals necessary for paying a vendor's invoice is a
    __________
    voucher
    .

  9. The three-way match involves the following:

  10. 9. the company's
    __________
    purchase
    order,
  11. 10. the vendor's
    __________
    invoice
    , and
  12. 11. the company's
    __________
    receiving
    report or ticket.
  13. 12. A $1,000 invoice from a supplier has terms of 2/10, n/30. The amount that should be remitted to the supplier if the amount is paid within the discount period is $
    __________
    $980
    [$1,000 - (0.02 x $1,000)]
    .
  14. 13. A $2,000 invoice from a supplier for goods has terms of 1/10, n/30. If $100 of the goods were returned to the seller, the amount to be remitted within the discount period is $
    __________
    $1,881
    [$1,900 - (0.01 x $1,900)]
    .
  15. 14.

    A discount of 2% for paying within 10 days instead of 30 days amounts to an annual percentage rate closest to

    2%
    Wrong.
    24%
    Wrong.
    36%
    Right!
    [(20 days early and 2%) both x 18 = 360 days and 36%]
    72%
    Wrong.
  16. 15.

    The Internal Revenue Service form to be issued for amounts paid to independent contractors (that are not corporations) for services provided is

    Form 1099-MISC
    Right!
    Form W-2
    Wrong.
    Form W-3
    Wrong.
  17. 16.

    The Internal Revenue Service form used to request a taxpayer identification number from a vendor is

    Form 1096
    Wrong.
    Form W-3
    Wrong.
    Form W-9
    Right!
  18. 17. Under the accrual method of accounting, the expenses that have been incurred but not yet entered as accounts payable should be part of an accrual-type
    __________
    adjusting
    entry.
  19. 18. The amounts accrued at the end of the current accounting period often become the amounts in the
    __________
    reversing
    entry in the subsequent accounting period.
  20. 19. Paying the insurance premium on December 20 for the six-month period beginning 12 days later should result in a debit balance in the asset account
    __________
    Prepaid
    Insurance.
  21. 20. The segregation or separation of duties and the safeguarding of checks are two examples of an important topic known as
    __________
    internal
    controls.

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