Accounting Paraprofessional Preparation and Exam Resources Flashcards
7 cards from real CAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Accounting Paraprofessional Preparation and Exam Resources flashcards as text
Which of the following exam-taking strategies is most effective when encountering a difficult question on the CAP exam?
Answer: Flag it, move on, and return after completing easier questions
Flagging difficult questions and returning after completing easier ones preserves time and allows subconscious processing of the harder problem.
What is a 'bank reconciliation' and why is it important for the CAP exam?
Answer: A process to match company cash records with bank statements to identify discrepancies
Bank reconciliation compares a company's internal cash records with the bank statement to identify errors, timing differences, or fraud.
Which IRS form must employers file quarterly to report payroll taxes withheld from employees?
Answer: Form 941
Form 941, the Employer's Quarterly Federal Tax Return, is filed four times per year to report income taxes, Social Security, and Medicare taxes withheld.
In the context of CAP exam study, what is the 'matching principle' in accounting?
Answer: Expenses should be recorded in the same period as the revenues they help generate
The matching principle requires that expenses be recognized in the same accounting period as the revenues they helped to produce.
Which of the following best describes an 'adjusting entry' used in accounting?
Answer: An entry made at period-end to update account balances for accruals and deferrals
Adjusting entries are made at the end of an accounting period to ensure revenues and expenses are recognized in the correct period under accrual accounting.
When using practice tests to prepare for the CAP exam, what is the most productive way to review incorrect answers?
Answer: Analyze why the wrong answer was chosen and understand the underlying concept
Understanding the reasoning behind wrong answers reinforces the correct concept and helps prevent repeating the same mistake.
What is the key difference between accounts payable and accounts receivable on a company's balance sheet?
Answer: Accounts receivable is money owed to the company; accounts payable is money the company owes to vendors
Accounts receivable is an asset representing money customers owe the company, while accounts payable is a liability representing money the company owes to its vendors.