Accounts Payable MCQs
Which of the following is an example of accounts payable?
A) Rent payment due in two months
B) Payment for inventory received from a supplier last month
C) Salary payment made to an employee last week
D) Payment for advertising services provided by a marketing agency
Answer: B) Payment for inventory received from a supplier last month
Accounts payable are recorded as a ________ in the balance sheet.
A) liability
B) asset
C) expense
D) revenue
Answer: A) liability
What is the main purpose of accounts payable?
A) To keep track of the payments made by customers
B) To keep track of the payments made to suppliers and vendors
C) To keep track of the salaries paid to employees
D) To keep track of the taxes paid to the government
Answer: B) To keep track of the payments made to suppliers and vendors
Which of the following is a disadvantage of having a large accounts payable balance?
A) It can lead to a higher credit rating for the company
B) It can reduce the cash flow of the company
C) It can increase the profitability of the company
D) It can increase the stock price of the company
Answer: B) It can reduce the cash flow of the company
Which of the following is a common accounts payable payment term?
A) 30 days net
B) 30 days gross
C) 60 days net
D) 60 days gross
Answer: A) 30 days net
Accounts Payable MCQs
Which of the following documents is typically used to request payment from a customer?
A) Purchase order
B) Invoice
C) Receipt
D) Packing slip
Answer: B) Invoice
What is the purpose of a purchase order in the accounts payable process?
A) To request payment from a customer
B) To authorize the purchase of goods or services from a supplier
C) To record the receipt of goods or services from a supplier
D) To record the payment made to a supplier
Answer: B) To authorize the purchase of goods or services from a supplier
Which of the following is a disadvantage of using electronic payments for accounts payable?
A) Increased security risks
B) Higher processing costs
C) Slower processing times
D) Limited accessibility
Answer: A) Increased security risks
Which of the following is an example of a trade discount?
A) A cash discount offered to customers who pay early
B) A discount offered to customers who purchase large quantities of goods
C) A discount offered to employees of the company
D) A discount offered to suppliers for early payment
Answer: B) A discount offered to customers who purchase large quantities of goods