Accounting Paraprofessional Skills and Knowledge Covered 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 Skills and Knowledge Covered flashcards as text
When reconciling a bank statement, which item would appear as an outstanding check on the book side?
Answer: A check written by the company but not yet cleared the bank
Outstanding checks are written and recorded by the company but have not yet been processed by the bank.
Which inventory costing method assumes the most recently purchased items are sold first?
Answer: LIFO
LIFO (Last-In, First-Out) assumes the most recently purchased inventory is sold first.
A petty cash fund is established for $200. After replenishment, the cashier should have receipts and cash totaling:
Answer: Exactly $200
The petty cash fund is always restored to its established amount, so the total of cash plus receipts always equals $200.
Which of the following is an example of a variable cost for a business?
Answer: Raw materials used in production
Raw materials vary directly with production volume, making them a classic variable cost.
Accounts receivable turnover is calculated as:
Answer: Net credit sales divided by average accounts receivable
Accounts receivable turnover = Net Credit Sales ÷ Average Accounts Receivable, measuring how efficiently a firm collects receivables.
When a company receives a prepayment from a customer, the correct journal entry is to:
Answer: Debit Cash and credit Unearned Revenue
A customer prepayment creates a liability (Unearned Revenue) until the service or product is delivered.
Which financial statement shows a company's financial position at a specific point in time?
Answer: Balance Sheet
The Balance Sheet reports assets, liabilities, and equity as of a specific date, reflecting the company's financial position at that moment.