AP Test[1]

SkillCheck Professional Plus * Accounting:  Accounts Payable * Answer Sheet 1.

Which journal is used to arecord acquisition acquisition transactions transactions such as inventory, supplies, supplies, and office office expenses? A.  Acco Accoun unts ts paya payabl blee or purc purcha hase sess jour journa nall

2.

B.  Rece Receiv ivab able less jour journa nall

I  nventory

D.  Sale Saless jour journa nall

B.

A  ccounts payable

C.

D. D.

A  ccounts receivable

C  ash

B.  Purc Purcha hase se of comp comput uter er equi equipm pmen entt for for $2,5 $2,500 00 and and paym paymen entt in full full D.  Purchase of furniture for $1,00 ,000 on account E.  A and C

Which transaction(s) decrease(s) an asset asset AND a liability? liability? A. B. C. D. E.

6.

C.  Buyi Buying ng jour journa nall

Which transaction(s) increase(s) an asset asset AND a liability? liability? A. Sale Sale on acco accoun untt for for $500 $500 C. Payment of $3,00 ,000 in salaries

5.

B.  Cash Cash disb disbur urse seme ment ntss jour journa nall

Inventory is returned to a vendor on credit. credit.  What account is debited? A.

4.

D.  Sale Saless jour journa nall

Which journal is used used to record disbursements by check? check? A.  Acco Accoun unts ts paya payabl blee or purc purcha hase sess jour journa nall

3.

C.  Buyi Buying ng jour journa nall

Sale on account account for $500 Purchase of computer equipment for $2,500 and payment in full Payment of $3,000 in supplies purchased on account account Purchase of furniture furniture for $1,000 on account C and and D

Which transaction(s) increase(s) a liability liability AND an expense? A. Sale on account for $500 B.  Pur Purchase of computer equipment for $2,500 and payment in full C.    Purcha Purchase se of liabil liability ity insura insurance nce,, paymen paymentt due in 30 days days D.  Pur  Purcha chase se of suppli supplies es for $10 $100 0 cash cash B.  A  A and B

Enter the account number to post the following item to the General Ledger: 7. 8. 9.

Depreciation on office computer equipment  520  520 Purchase Purchase of six desks  200  200 Gift for employee’ employee’ss birthd birthday ay  580  580

1

SkillCheck Professional Plus * Accounting:  Accounts Payable * Answer Sheet 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

Repair of company car  252 New photocopier  146 Paid insurance coverage in advance  118 Two year subscription to professional publication  360 Newspaper subscription  360? Three day seminar on new accounting system  345 Language seminar for international operator staff  345 Paid electricity expense for one month  512 Two weeks wages paid to a secretary  214 Which accounts payable procedure(s) can provide assurance that checks are classified to the correct account(s)? 1. 2. 3. 4.

Comparison of invoices to purchase orders Comparison of the purchases journal to bank statements Comparison of vendor invoices to the chart of accounts and purchases journal Comparison of checks to bank statements

A. 1  only B. E.  All of the specified procedures

2  only

C. 3  only D. 1  and 4 only F.  None of the specified procedures

20. Which accounts payable procedure(s) can provide assurance that checks are recorded on a timely basis? 1. 2. 3. 4.

Comparison of check dates with bank cancellation dates Comparison of checks with the cash disbursements journal Comparison of checks to vendor invoices Comparison of dates on cancelled checks to the cash disbursements journal

A.   1 only B. E.  All of the specified procedures

2  only

C. 2  and 3 only D. 1 and 4 only F.  None of the specified procedures

21. Which accounts payable procedure(s) is NOT a control procedure(s) for issuing a check? 1. 2.

Prenumber checks Proper authorization signature

A.  1 only

B.  2 only

3.   Review of purchase order and receiving report 4.   Proper bank cancellation date C.  3 only

D.  4 only

E.  1 and 2 only

F.  3 and 4 only

22. What is the cash payments journal used to record? A. Sales of merchandise B. Receipt of cash

C. D.

Disbursements   of cash Adjusting,   closing, and reversing entries

23. Which accounts payable procedure(s) can provide assurance that the purchases recorded are reasonable? 1. 2. 3. 4.

Review of the purchases journal for large or unusual amounts Review of the accounts payable subsidiary ledger for large or unusual amounts Review of the cash receipts journal Review of receiving reports

A.   1 only B.   2 only E.  All of the specified procedures

C.   1,2, and 4 only D. F.  None of the specified procedures.

  1,2, and 3 only

24. Which accounts payable control(s) and procedure(s) can provide assurance that existing purchases are recorded? 1. 2. 3.

Requiring that purchase orders be prenumbered and accounted for  Requiring that receiving reports be prenumbered and accounted for  Tracing of receiving reports to the purchase journal

2

SkillCheck Professional Plus * Accounting:  Accounts Payable * Answer Sheet 4.

Review of the cash receipts journal

A.   1 only B.   2 only E.  All of the specified procedures

C.   1 and 3 only D. F.  None of the specified procedures

  1,2, and 3 only

25. Which of the following actions may cause accounts payable to be understated? A. B. C. D.

Recording of acquisitions are deferred until payment Vendor invoices are accrued and paid in a timely manner  Receipt of goods is documented promptly by prenumbered receiving reports Individual accounts payable subsidiary ledgers are reconciled with vendor statements

26. Which accounts payable procedure(s) can be used to locate unrecorded liablities? 1. 2. 3. 4.

Review of the purchases journal for the current period Confirmation of year-end accounts payables Review of the cash disbursements journal for subsequent periods Review of vendor invoices

A.

1  only

E.

2  , 3, and 4 only

B.

2  only

C. F.

3

4  only A  ll of the specified procedures

D.

1  and 3 only