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Accounts Payable(Quick Test)

Author:
Harold Averkamp, CPA, MBA

After you have answered all 20 questions, click "Grade This Quick Test" at the bottom of the page to view your grade and receive feedback on your answers.

Note: Some of the following test questions may not have been covered in the Explanation or Practice Quiz for this topic. For more insight regarding a specific question, use the search box at the top of the page.

    1. 1. A company owes its suppliers $38,000 and it owes its bank $50,000. The suppliers and the bank are referred to as the company’s __________.

    2. 2. Prior to approving a vendor’s invoice for payment, the invoice, receiving report, and __________ order should be compared.

    3. 3. A supplier’s invoice for $1,000 is received on June 1 and has terms of 1/10, net 30. If the invoice is paid on June 9, the amount to be paid is $__________.

    4. 4. An invoice from a supplier has credit terms of 2/10, net 30. The invoice is for $1,000 but $100 of the goods were returned within two days as instructed by the supplier. The amount to be remitted to the supplier within the discount period is $__________.

    5. 5. A __________ discount is usually a percentage that is deducted from a catalog’s list price.

    6. Use the following information for answering Questions 6 - 8:
      A supplier shipped goods to the buyer on December 28. The buyer received the goods on January 2. The terms were FOB shipping point.

    7. 6. Who owns the goods on December 31?

    8. 7. Does the buyer have a liability as of December 31?

    9. 8. Who should pay the shipping costs?

    10. 9. When goods are purchased using credit, we say that the goods were purchased on credit or were purchased on __________.

    11. 10. Who pays the freight cost when the terms of a sale are FOB destination?

    12. 11. In accounts payable, “PO” refers to purchase __________.

    13. 12. A document that could be used in assembling documents and approvals before recording a supplier’s invoice in Accounts Payable is a __________.

    14. 13. A technique for verifying information on a supplier’s invoice is the three-way __________.

    15. 14. Which document from a supplier is the better choice for processing and making a payment?

    16. 15. When a company processes a credit memo from one of its suppliers, will it result in a debit or credit to Accounts Payable?

    17. 16. What is the form that must be given to an independent contractor (that is not a corporation) who received $1,000 for having provided services?

    18. 17. A supplier’s credit terms of 1/10, net 30 may result in the customer getting an early- __________ discount.

    19. 18. A supplier’s invoice that is not completely processed at the end of an accounting period may require which of the following entries?

    20. 19. Accounts Payable is associated with which method of accounting?

    21. 20. In which account should a sales tax charged by a supplier for a new office computer be recorded?

Any questions left unanswered will be marked incorrect.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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