Accounts Payable Questions

Q:

What is accumulated loss?

Answer

A loss (or losses) from previous years carried forward in order to offset future earnings. This reduces the tax burden for the years with profit as the accumulated losses are deducted from the taxable profit.

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Q:

What is FBT (Fringe Benefit Tax)?

Answer

The tax payable on a non-salary benefit provided to an employee or an associate of the employee. The employer is liable to pay any FBT and may choose to recover the FBT amount from the employee.

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Q:

Internal controls are concerned with

A) the extent of government regulations B) preparing income tax returns
C) safeguarding assets D) only manual systems of accounting
 
Answer & Explanation Answer: C) safeguarding assets

Explanation:

Internal control, as defined in accounting and auditing, is a process for assuring achievement of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. A broad concept, internal control involves everything that controls risks to an organization.

 

Internal control is all of the policies and procedures management uses to achieve the following goals.

  • Safeguard University assets - well designed internal controls protect assets from accidental loss or loss from fraud.

 

  • Ensure the reliability and integrity of financial information - Internal controls ensure that management has accurate, timely and complete information, including accounting records, in order to plan, monitor and report business operations.

 

  • Ensure compliance - Internal controls help to ensure the University is in compliance with the many federal, state and local laws and regulations affecting the operations of our business.

 

  • Promote efficient and effective operations - Internal controls provide an environment in which managers and staff can maximize the efficiency and effectiveness of their operations.

 

  • Accomplishment of goals and objectives - Internal controls system provide a mechanism for management to monitor the achievement of operational goals and objectives.

 

Hence, Internal controls are concerned with safeguarding assets.

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Exam Prep: AIEEE , Bank Exams , CAT
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Q:

What is pro forma ?

Answer

A pro forma invoice is a price quote and subject to change. Accounts Payable Services does not pay from pro forma invoices, statements, quotes or estimates.

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Subject: Accounts Payable Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

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Q:

What is the meaning of invoice?

Answer

An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms.

In the rental industry, an invoice must include a specific reference to the duration of the time being billed, so rather than quantity, price and discount the invoicing amount is based on quantity, price, discount and duration. Generally speaking each line of a rental invoice will refer to the actual hours, days, weeks, months etc being billed.

From the point of view of a seller, an invoice is a sales invoice. From the point of view of a buyer, an invoice is a purchase invoice. The document indicates the buyer and seller, but the term invoice indicates money is owed or owing. In English, the context of the term invoice is usually used to clarify its meaning, such as "We sent them an invoice" (they owe us money) or "We received an invoice from them" (we owe them money).

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Q:

What do you understand by Open Item Managed Account?

Answer

Open item management ensures that all items that have not yet been cleared are available in the system. Only after every open item in a document is cleared can a document be archived.

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Q:

what is the difference between the terms 'credit' and 'debit' from the customer point of view?

Answer

 From the customer point of view, credit is the amount which is deposited into her or his account. And debit refers to that amount which is taken from the account of the customer.

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Subject: Accounts Payable

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Q:

Which is the most accurate statement about trade?

A) Trade makes some nations better off and others worse off B) Trading for a good can make a nation better off only if the nation cannot produce that good itself
C) Trade helps rich nations and hurts poor nations D) Trade can make every nation better off
 
Answer & Explanation Answer: D) Trade can make every nation better off

Explanation:
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Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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