SkillCheck Professional Plus * Accounting: Accounts Payable * Answer Sheet

1. Which journal is used to arecord acquisition transactions such as inventory, supplies, and office expenses?

A. Accounts payable or purchases journal B. Receivables journal C. Buying journal D. Sales journal

2. Which journal is used to record disbursements by check?

A. Accounts payable or purchases journal B. Cash disbursements journal C. Buying journal D. Sales journal

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

A. Inventory B. Accounts payable C. Accounts receivable D. Cash

4. Which transaction(s) increase(s) an asset AND a liability?

A. Sale on account for $500 B. Purchase of computer equipment for $2,500 and payment in full
C. Payment of $3,000 in salaries D. Purchase of furniture for $1,000 on account E. A and C

5. Which transaction(s) decrease(s) an asset AND a liability?

A. Sale on account for $500

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

6. Which transaction(s) increase(s) a liability AND an expense?

A. Sale on account for $500 B. Purchase of computer equipment for $2,500 and payment in full
C. Purchase of liability insurance, payment due in 30 days D. Purchase of supplies for $100 cash B. A and B

Enter the account number to post the following item to the General Ledger:

7. Depreciation on office computer equipment 520

8. Purchase of six desks 200
9. Gift for employee’s birthday 580

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SkillCheck Professional Plus * Accounting: Accounts Payable * Answer Sheet

10. Repair of company car 252

11. New photocopier 146
12. Paid insurance coverage in advance 118
13. Two year subscription to professional publication 360
14. Newspaper subscription 360?
15. Three day seminar on new accounting system 345
16. Language seminar for international operator staff 345
17. Paid electricity expense for one month 512
18. Two weeks wages paid to a secretary 214
19. Which accounts payable procedure(s) can provide assurance that checks are classified to the correct account(s)?

1. Comparison of invoices to purchase orders

2. Comparison of the purchases journal to bank statements
3. Comparison of vendor invoices to the chart of accounts and purchases journal
4. Comparison of checks to bank statements

A. 1 only B. 2 only C. 3 only D. 1 and 4 only

E. All of the specified procedures F. None of the specified procedures

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

1. Comparison of check dates with bank cancellation dates

2. Comparison of checks with the cash disbursements journal
3. Comparison of checks to vendor invoices
4. Comparison of dates on cancelled checks to the cash disbursements journal

A. 1 only B. 2 only C. 2 and 3 only D. 1 and 4 only

E. All of the specified procedures F. None of the specified procedures

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

1. Prenumber checks 3. Review of purchase order and receiving report

2. Proper authorization signature 4. Proper bank cancellation date

A. 1 only B. 2 only 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 C. Disbursements of cash

B. Receipt of cash D. Adjusting, closing, and reversing entries

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

1. Review of the purchases journal for large or unusual amounts

2. Review of the accounts payable subsidiary ledger for large or unusual amounts
3. Review of the cash receipts journal
4. Review of receiving reports

A. 1 only B. 2 only C. 1,2, and 4 only D. 1,2, and 3 only

E. All of the specified procedures F. None of the specified procedures.

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

1. Requiring that purchase orders be prenumbered and accounted for

2. Requiring that receiving reports be prenumbered and accounted for
3. Tracing of receiving reports to the purchase journal

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SkillCheck Professional Plus * Accounting: Accounts Payable * Answer Sheet

4. Review of the cash receipts journal

A. 1 only B. 2 only C. 1 and 3 only D. 1,2, and 3 only

E. All of the specified procedures F. None of the specified procedures

25. Which of the following actions may cause accounts payable to be understated?

A. Recording of acquisitions are deferred until payment

B. Vendor invoices are accrued and paid in a timely manner
C. Receipt of goods is documented promptly by prenumbered receiving reports
D. Individual accounts payable subsidiary ledgers are reconciled with vendor statements

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

1. Review of the purchases journal for the current period

2. Confirmation of year-end accounts payables
3. Review of the cash disbursements journal for subsequent periods
4. Review of vendor invoices

A. 1 only B. 2 only C. 4 only D. 1 and 3 only

E. 2, 3, and 4 only F. All of the specified procedures