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Accounts Payable (Practice Quiz)

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For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions press or click on the blank space provided.

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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