Financial Management and Budgeting 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 Financial Management and Budgeting flashcards as text
What is the purpose of a three-way match in accounts payable?
Answer: Verifying that the purchase order, receiving report, and vendor invoice agree before payment
A three-way match confirms that the PO, receiving report, and invoice all agree on quantity and price before authorizing payment.
Which depreciation method allocates an equal expense amount each year over an asset's useful life?
Answer: Straight-line depreciation
Straight-line depreciation divides the asset's cost evenly across its useful life, producing a constant annual expense.
When an admin prepares a cost-benefit analysis for a proposed office renovation, what should the analysis include?
Answer: All expected costs and all anticipated benefits, expressed in monetary terms
A cost-benefit analysis quantifies all costs and benefits in monetary terms to determine whether the investment is justified.
What does accounts receivable represent on a company's balance sheet?
Answer: Money owed to the company by customers for goods or services already delivered
Accounts receivable is a current asset representing amounts customers owe the company for delivered goods or services.
An admin is reconciling the office credit card statement. Which step should come first?
Answer: Match each statement transaction to its corresponding receipt
Reconciliation begins by matching each statement transaction to its receipt to verify accuracy before any payment or dispute.
Which IRS form do U.S. companies use to report non-employee compensation of $600 or more to independent contractors?
Answer: 1099-NEC
Form 1099-NEC (Nonemployee Compensation) is filed with the IRS and provided to contractors paid $600 or more in a tax year.