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Quizzes > High School Quizzes > Career

Accounts Payable Practice Quiz

Sharpen your skills with realistic test questions

Editorial: Review CompletedCreated By: Sophia ViajanteUpdated Aug 25, 2025
Difficulty: Moderate
Grade: Grade 12
Study OutcomesCheat Sheet
Colorful paper art promoting the Ace Accounts Payable Quiz for accounting students

This accounts payable quiz helps you practice Grade 12 accounting skills you'll use to manage bills, vendors, and credits in class. Answer 20 quick questions to spot weak areas before an exam and learn a tip or two as you go.

Which document is compared in a 3-way match in accounts payable?
Purchase requisition, bank statement, and PO
Sales order, invoice, and packing slip
Invoice, bank statement, and check stub
Purchase order, invoice, and receiving report - Explanation: A 3-way match verifies that the PO, vendor invoice, and goods receipt align before payment is approved.
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Under the term 2/10, net 30, what does the 2 represent?
A $2 flat discount for early payment
A 2-month credit period
A 2% discount is available if paid within 10 days - Explanation: 2/10, net 30 offers a 2% discount for payment within 10 days; otherwise the full amount is due in 30 days.
A 2-day grace period after due date
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The primary purpose of an accounts payable aging report is to
Categorize unpaid vendor invoices by how long they have been outstanding - Explanation: Aging buckets (e.g., 0-30, 31-60 days) help prioritize payments and manage overdue liabilities.
Record all customer receipts by date
Reconcile bank statements
Calculate payroll tax deductions
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A vendor credit memo typically indicates
A new purchase order has been issued
A request for immediate payment
An increase in the purchase price
A reduction of the amount owed to the vendor - Explanation: Credit memos decrease the payable due to returns, price adjustments, or allowances.
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In the accounts payable process, segregation of duties helps primarily to
Eliminate the need for approvals
Reduce the risk of fraud and errors - Explanation: Separating authorization, custody, and recordkeeping discourages fraud and improves accuracy.
Increase the speed of bank transfers
Reduce vendor prices automatically
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Which control best prevents duplicate invoice payment?
Sending payments only on Fridays
Manual re-keying by a second clerk
System validation of unique vendor+invoice number combination - Explanation: Enforcing uniqueness on vendor ID and invoice number blocks duplicates from entry and payment.
Storing invoices in paper files
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In a 2-way match process, which documents are compared?
Purchase order and vendor invoice - Explanation: 2-way matching verifies invoice details against the PO without referencing receipt data.
Invoice and bank statement
PO and goods receipt only
Invoice and packing slip only
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Which term describes paying a supplier based on receipt data without an invoice?
Factoring
Consignment
Reverse logistics
Evaluated Receipt Settlement (ERS) - Explanation: ERS pays suppliers based on PO and receipt quantities and prices, eliminating invoices.
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True or False: The accounts payable subledger should reconcile to the accounts payable control account in the general ledger.
False
True
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Which item is normally part of vendor master data?
Employee vacation balances
Payment terms and bank details - Explanation: Vendor master holds key data like terms, tax IDs, addresses, and remittance instructions.
Customer credit limits
Finished goods bill of materials
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A common red flag of AP fraud is
Use of purchase orders for all buys
Multiple payments to slightly different vendor names at the same address - Explanation: Shell vendors and split payments can indicate fraudulent schemes.
Vendors sending early payment discounts
Monthly reconciliations completed on time
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In a 3-way match, a price variance arises when
Invoice date differs from PO date
Invoice unit price differs from the purchase order price - Explanation: Price variances occur on unit price mismatches across PO and invoice.
Received quantity differs from quantity shipped
Vendor address differs from PO address
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True or False: Dynamic discounting allows buyers and suppliers to negotiate early payment discounts on a sliding scale based on payment date.
True
False
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Which statement about supply chain finance (reverse factoring) is correct?
The supplier pays the bank early, reducing buyer liability
A bank pays the supplier early, and the buyer pays the bank at maturity - Explanation: SCF leverages the buyer's credit to accelerate supplier payments.
It eliminates the buyer's obligation to pay
It requires no buyer involvement
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If payment terms are 1/10, net 45 and the invoice is $20,000, how much is saved by taking the discount?
$1,000
$200 - Explanation: 1% of $20,000 is $200.
$2,000
$20
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True or False: Freight terms FOB Shipping Point generally mean title transfers to the buyer at shipment, and the buyer records freight-in costs.
True
False
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Which statement about nonresident VAT/GST on foreign vendor invoices is correct?
No tax entries are ever required
Reverse charge may require the buyer to self-assess input and output tax - Explanation: Many jurisdictions use reverse charge for cross-border services, impacting AP tax coding.
VAT is always nonrecoverable on services
Only the vendor is responsible for any tax
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True or False: SEPA credit transfers use NACHA files for payment initiation in the Eurozone.
True
False
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Which best describes the cash conversion cycle impact of extending DPO, all else equal?
It reduces the cash conversion cycle length - Explanation: Longer DPO delays cash outflows, shortening the net cycle.
It increases DSO
It increases inventory days automatically
It has no effect on cash metrics
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A short pay in AP occurs when
The vendor issues a larger credit memo
The buyer intentionally pays less than the invoiced amount - Explanation: Short pays result from disputes, returns, or deductions like discounts.
The buyer pays more than invoiced
The bank rejects the entire payment
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Study Outcomes

  1. Understand core accounts payable functions and their impact on financial statements.
  2. Analyze invoice processing and payment procedures for efficiency.
  3. Apply accounting principles to accurately match invoices with purchase orders.
  4. Evaluate internal controls to prevent errors and detect fraud.
  5. Calculate the impact of discount terms and payment timing on vendor costs.

Accounts Payable Test Cheat Sheet

  1. Accounts Payable Turnover Ratio - Think of this ratio as your supplier speedometer: it tells you how fast a company pays back what it owes. A higher number means you're the friend who never forgets to split the bill, showing off solid liquidity and top‑notch vendor vibes.
  2. Formula Breakdown - The AP Turnover Ratio formula is Net Credit Purchases divided by Average Accounts Payable, revealing how many times payables clear out in a period. It's like counting how often you clear your inbox - super helpful for spotting patterns!
  3. Average Accounts Payable - To calculate Average AP, simply add the beginning and ending payables and then divide by two. This evens out seasonal spikes or dips so your ratio doesn't get tricked by one big purchase or payment.
  4. Interpreting High vs. Low Ratios - A higher ratio suggests you're on top of bills and keeping suppliers happy, while a lower one might hint at cash flow hiccups or extra credit breathing room. Think of it like your GPA: too low and you need to step up study sessions, too high and you might be missing out on fun projects!
  5. Industry Comparisons - Don't compare apples to oranges - always benchmark against peers in the same industry to get real insights. What's stellar in retail might be average in manufacturing, so context is king!
  6. AP vs. AR Turnover - Pair your AP Turnover with Accounts Receivable Turnover to see the full cash‑flow storyline. It's like watching both sides of a ping‑pong match: one shows how fast you pay, the other reveals how fast you get paid.
  7. Spotting a Downward Trend - A falling ratio over time could be a red flag for financial strain or new, more lenient payment terms. Stay alert - this might mean you need to tighten budgets or renegotiate with vendors.
  8. Creditworthiness Check - Use the ratio to gauge if a company can handle its short‑term debts like a champ. Lenders and investors love this metric because it shows whether you're on track or in need of a cash cushion.
  9. Hands‑On Practice - Crunch real‑world numbers from annual reports or case studies to lock in your skills. The more you practice, the more confident you'll be when that exam question pops up!
  10. Beware of Overkill - An extremely high ratio isn't always a flex - it could mean you're missing out on growth by paying too fast. Balance speedy payments with strategic cash use for maximum financial fitness!
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