NAPCP - CPCP Certification ACTUAL
UPDATED QUESTIONS AND CORRECT
ANSWERS
End-users are - CORRECT ANSWERS✅✅the companies, government agencies,
universities/colleges, etc that provide P-Cards to their employees.
P-Card program managers(PM), program administrator(PA), and/or site coordinator (SC) are
- CORRECT ANSWERS✅✅the primary roles that manage a P-Card program within an end-
users organization.
Cardholders are - CORRECT ANSWERS✅✅those who initiate P-Card transactions on
behalf of their employer, the end-user organization.
Suppliers are - CORRECT ANSWERS✅✅those who accept P-Cards as payment for goods
and services.
Issuers are - CORRECT ANSWERS✅✅those who work directly with end-users to
implement and grow programs, issue cards, and invoice posted P-Card transactions.
True or False:
The issuer uses the services of the networks and processors to faciliate card issuance,
authorize transactions, and provide date. Many financial institutions are not issuers. Issuers
are sometimes called card "providers" - CORRECT ANSWERS✅✅False: Many financial
institutions are issuers. USBANK and JP Morgan Chase are examples.
Merchant acquirers are - CORRECT ANSWERS✅✅those who enroll suppliers in the card
acceptance process and implement equipment and software solutions related to this purpose.
They facilitate payment flow including payment to suppliers.
What is also known as a supplier's bank? - CORRECT ANSWERS✅✅Merchant acquirers
What is also known as card providers? - CORRECT ANSWERS✅✅Issuers
,What is a purchasing card? - CORRECT ANSWERS✅✅It is a type of commercial credit
card used by organizations for the payment of goods and services.
Why were P-Cards created? - CORRECT ANSWERS✅✅A financial re-engineering tool to
streamline accounts payable processes, typically replacing paper checks as the payment
method for low-value transactions.
Which is not a benefit of using the P-Card?
a. procure in a timely manner
b. take advantage of supplier discounts
c. convenience fee
d. reduce transaction costs
e. track expenses - CORRECT ANSWERS✅✅c. convenience fee
Networks are - CORRECT ANSWERS✅✅used to facilitate the movement of transactional
data between the issuer and the merchant acquirer and set the rules pertaining to suppliers'
card acceptance.
What organizations would be considered a network? - CORRECT ANSWERS✅✅Visa,
MasterCard, and American Express
What are also known as associations? - CORRECT ANSWERS✅✅Networks
Processors are - CORRECT ANSWERS✅✅those who provide various services to card
issuers and merchants acquirers, which may include card production, statement printing,
authorization and data delivery.
What is Procure-to-Pay Process?
a. Pay for what you buy online or in-person; obtain a receipt
b. Suppliers fulfill cardholder orders, charge a card when shipped, receive packing list with
product; no invoice received
c. Suppliers fulfill cardholder order, charge card, ships product; invoice received
,d. Suppliers send invoice, charge card, fulfill order, ship product; packing list received -
CORRECT ANSWERS✅✅b. Suppliers fulfill cardholder orders, charge a card when
shipped, receive packing list with product; no invoice received
Benefit for using the Procure-to-Pay process:
a. supplier receive payment within 2-3 days versus 30+ days
b. receive a payment voucher guaranteeing payment
c. cardholders have their product before they have to pay
d. The process eliminates all paperwork - CORRECT ANSWERS✅✅a. supplier receive
payment within 2-3 days versus 30+ days
Who provides an invoice (central bill) to the end-user organization reflecting the total of each
P0Card account plus a grand total of what is owed for the cycle?
a. Suppliers
b. Processors
c. Networks
d. Merchant acquirers
e. Issuers - CORRECT ANSWERS✅✅e. Issuers
Corporate liability or organization liability are terms for
______________________________. - CORRECT ANSWERS✅✅Liability for payment.
Who neither owes the card issuer nor makes payments?
a. Cardholders
b. Suppliers
c. End-users
d. P-Card manager - CORRECT ANSWERS✅✅a. Cardholders
Each month, individual cardholder statements should show a ___________________
balance.
a. full
b. zero
, c. 1/2 of month total - CORRECT ANSWERS✅✅b. zero
Does the organization carry a balance month to month? - CORRECT ANSWERS✅✅No
The P-Card Billing Process includes the following entries but one:
a. Cardholder
b. End-User Organization
c. Bank
d. Card Issuer
e. General Ledger - CORRECT ANSWERS✅✅c. Bank
To minimize the risk of fraud and misuse, what can the end-user organization do? List 4
items. - CORRECT ANSWERS✅✅a. Dictate policies and procedures related to card usage
b. transaction documentation
c. variety of controls
d. spend and velocity limits
What are the 3 types of purchasing card account types? - CORRECT ANSWERS✅✅a.
Traditional P-Card (plastic or non-plastic)
b. Department Card
c. Ghost Card/Ghost Account
What is a department card? - CORRECT ANSWERS✅✅It is not a common card any more
due to accountability can be difficult and merchant cannot authenticate the cardholder. It was
created to increase purchasing flexibility while restricting the number of cards issued.
What is a ghost card? - CORRECT ANSWERS✅✅A card account issued to a specific
supplier or supplier type. Generally the card's account number is not know by the employees.
It is common for mulitple employees to use the card.
What is a traditional P-Card? - CORRECT ANSWERS✅✅The cards are issued to individual
employees to pay for a variety of expenses with multiple suppliers.
UPDATED QUESTIONS AND CORRECT
ANSWERS
End-users are - CORRECT ANSWERS✅✅the companies, government agencies,
universities/colleges, etc that provide P-Cards to their employees.
P-Card program managers(PM), program administrator(PA), and/or site coordinator (SC) are
- CORRECT ANSWERS✅✅the primary roles that manage a P-Card program within an end-
users organization.
Cardholders are - CORRECT ANSWERS✅✅those who initiate P-Card transactions on
behalf of their employer, the end-user organization.
Suppliers are - CORRECT ANSWERS✅✅those who accept P-Cards as payment for goods
and services.
Issuers are - CORRECT ANSWERS✅✅those who work directly with end-users to
implement and grow programs, issue cards, and invoice posted P-Card transactions.
True or False:
The issuer uses the services of the networks and processors to faciliate card issuance,
authorize transactions, and provide date. Many financial institutions are not issuers. Issuers
are sometimes called card "providers" - CORRECT ANSWERS✅✅False: Many financial
institutions are issuers. USBANK and JP Morgan Chase are examples.
Merchant acquirers are - CORRECT ANSWERS✅✅those who enroll suppliers in the card
acceptance process and implement equipment and software solutions related to this purpose.
They facilitate payment flow including payment to suppliers.
What is also known as a supplier's bank? - CORRECT ANSWERS✅✅Merchant acquirers
What is also known as card providers? - CORRECT ANSWERS✅✅Issuers
,What is a purchasing card? - CORRECT ANSWERS✅✅It is a type of commercial credit
card used by organizations for the payment of goods and services.
Why were P-Cards created? - CORRECT ANSWERS✅✅A financial re-engineering tool to
streamline accounts payable processes, typically replacing paper checks as the payment
method for low-value transactions.
Which is not a benefit of using the P-Card?
a. procure in a timely manner
b. take advantage of supplier discounts
c. convenience fee
d. reduce transaction costs
e. track expenses - CORRECT ANSWERS✅✅c. convenience fee
Networks are - CORRECT ANSWERS✅✅used to facilitate the movement of transactional
data between the issuer and the merchant acquirer and set the rules pertaining to suppliers'
card acceptance.
What organizations would be considered a network? - CORRECT ANSWERS✅✅Visa,
MasterCard, and American Express
What are also known as associations? - CORRECT ANSWERS✅✅Networks
Processors are - CORRECT ANSWERS✅✅those who provide various services to card
issuers and merchants acquirers, which may include card production, statement printing,
authorization and data delivery.
What is Procure-to-Pay Process?
a. Pay for what you buy online or in-person; obtain a receipt
b. Suppliers fulfill cardholder orders, charge a card when shipped, receive packing list with
product; no invoice received
c. Suppliers fulfill cardholder order, charge card, ships product; invoice received
,d. Suppliers send invoice, charge card, fulfill order, ship product; packing list received -
CORRECT ANSWERS✅✅b. Suppliers fulfill cardholder orders, charge a card when
shipped, receive packing list with product; no invoice received
Benefit for using the Procure-to-Pay process:
a. supplier receive payment within 2-3 days versus 30+ days
b. receive a payment voucher guaranteeing payment
c. cardholders have their product before they have to pay
d. The process eliminates all paperwork - CORRECT ANSWERS✅✅a. supplier receive
payment within 2-3 days versus 30+ days
Who provides an invoice (central bill) to the end-user organization reflecting the total of each
P0Card account plus a grand total of what is owed for the cycle?
a. Suppliers
b. Processors
c. Networks
d. Merchant acquirers
e. Issuers - CORRECT ANSWERS✅✅e. Issuers
Corporate liability or organization liability are terms for
______________________________. - CORRECT ANSWERS✅✅Liability for payment.
Who neither owes the card issuer nor makes payments?
a. Cardholders
b. Suppliers
c. End-users
d. P-Card manager - CORRECT ANSWERS✅✅a. Cardholders
Each month, individual cardholder statements should show a ___________________
balance.
a. full
b. zero
, c. 1/2 of month total - CORRECT ANSWERS✅✅b. zero
Does the organization carry a balance month to month? - CORRECT ANSWERS✅✅No
The P-Card Billing Process includes the following entries but one:
a. Cardholder
b. End-User Organization
c. Bank
d. Card Issuer
e. General Ledger - CORRECT ANSWERS✅✅c. Bank
To minimize the risk of fraud and misuse, what can the end-user organization do? List 4
items. - CORRECT ANSWERS✅✅a. Dictate policies and procedures related to card usage
b. transaction documentation
c. variety of controls
d. spend and velocity limits
What are the 3 types of purchasing card account types? - CORRECT ANSWERS✅✅a.
Traditional P-Card (plastic or non-plastic)
b. Department Card
c. Ghost Card/Ghost Account
What is a department card? - CORRECT ANSWERS✅✅It is not a common card any more
due to accountability can be difficult and merchant cannot authenticate the cardholder. It was
created to increase purchasing flexibility while restricting the number of cards issued.
What is a ghost card? - CORRECT ANSWERS✅✅A card account issued to a specific
supplier or supplier type. Generally the card's account number is not know by the employees.
It is common for mulitple employees to use the card.
What is a traditional P-Card? - CORRECT ANSWERS✅✅The cards are issued to individual
employees to pay for a variety of expenses with multiple suppliers.
