Accounts Payable Quiz and Test

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

1. The general ledger account Accounts Payable is a current
__________
liability
account.
2.
A __________ balance is typical for Accounts Payable.

Debit
Wrong.

Credit
Right!
3.
The balance in Accounts Payable is decreased with a __________ entry.

Debit
Right!

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

__________
purchase order
.
7.
Suppliers are also referred to as __________.

Vendors
Right!

Debtors
Wrong.
8. A form or record sometimes used to assemble the documentation and approvals necessary for paying a vendor's invoice is a
__________
voucher
.
The three-way match involves the following:
9. the company's
__________
purchase
order,
10. the vendor's
__________
invoice
, and
11. the company's
__________
receiving
report or ticket.
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)]
.
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)]
.
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.
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.
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!
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.
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.
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.
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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