CAP Accounts Payable and Receivable Flashcards
6 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 6 CAP Accounts Payable and Receivable flashcards as text
What document does a vendor send to a business to request payment for goods or services delivered?
Answer: Invoice
An invoice is the vendor's formal request for payment detailing the goods or services provided and the amount owed.
Which accounts payable term refers to the maximum number of days a company can wait before paying a vendor without penalty?
Answer: Net due date
The net due date is the deadline by which payment must be made to avoid late fees or damaged vendor relationships.
What does the credit term '2/10 Net 30' mean?
Answer: 2% discount if paid within 10 days, full amount due in 30 days
2/10 Net 30 means the buyer earns a 2% discount by paying within 10 days; otherwise the full invoice is due in 30 days.
Which document is used by a buyer to formally request goods or services from a vendor?
Answer: Purchase order
A purchase order (PO) is issued by the buyer to authorize and document a transaction before goods or services are received.
When a customer overpays an invoice, the correct accounts receivable entry is to:
Answer: Debit Cash and credit a customer credit/liability
An overpayment creates a liability to the customer, so Cash is debited and a customer credit balance (liability) is credited.
What is the primary purpose of an aging report in accounts receivable?
Answer: To identify overdue invoices and assess collection risk
An accounts receivable aging report categorizes outstanding invoices by how long they have been unpaid, helping management prioritize collections.