Accounts Payable Exam
Account Classification - ------------ANS: Business transactions that are summarized
by groups/categories, i.e., assets, liabilities, revenues and expenses.
Accounting Period - ------------ANS: A period of time covered by an Income
Statement or Statement of Changes in Financial Position. It can be any length of
time that is measured, but usually accounting periods are months, quarters and
years. A fiscal year is any consecutive 12-month period that a business chooses to
adopt as its calendar year.
Accounts Payable - ------------ANS: Accounts Payable is a strategic, value added
accounting function that performs the primary non-payroll disbursement functions in
an organization
Accounts Receivable - ------------ANS: Amounts due to the reporting company from
customers. Accounts receivable is considered a current asset.
Accrual Accounting - ------------ANS: Accrual accounting attempts to match expenses
with revenues for a particular reporting period.
Accrual Income - ------------ANS: The difference between revenues and expenses
identified during specific periods of time. Revenue is recognized during the period it
is earned. Correspondingly, expenses are matched to the revenue they help
produce.
ACH Transactions - ------------ANS: A method for paying a vendor whereby a firm
deposits funds into the vendors bank account.
Activity Based Costing (ABC) - ------------ANS: A method to direct organization's
costs to the products and services that caused the costs to be incurred.
, Alternate Site - ------------ANS: An alternate operating location to be used by
business functions when the primary facilities are inaccessible.
Assets - ------------ANS: Resources owned by a company usually recorded in the
ledger at historical cost.
B-Notice - ------------ANS: A notification sent by a business entity to a vendor/payee
that the taxpayer identification number provided by them is incorrect, thus subjecting
the vendor/payee to possible backup withholding requirements.
Backup Withholding - ------------ANS: Under certain conditions, the business entity is
required to withhold part of a payment to a vendor subject to backup withholding.
The amount withheld is remitted to the Internal Revenue Service. Backup
withholding is usually required when a payee has failed to give the proper taxpayer
identification number to the business entity.
Balance Sheet - ------------ANS: A financial statement that lists the assets of the
reporting entity and claims against those assets. The difference between categories
is known as Owners' Equity.
Benchmarking - ------------ANS: The process of establishing a standard of
performance.
Bill of Lading - ------------ANS: Documents that typically accompany a shipment
transferring custody of the goods from the supplier to the transportation company.
Blanket Purchase Order - ------------ANS: A large purchase order covering multiple
purchases over a stated period of time.
Account Classification - ------------ANS: Business transactions that are summarized
by groups/categories, i.e., assets, liabilities, revenues and expenses.
Accounting Period - ------------ANS: A period of time covered by an Income
Statement or Statement of Changes in Financial Position. It can be any length of
time that is measured, but usually accounting periods are months, quarters and
years. A fiscal year is any consecutive 12-month period that a business chooses to
adopt as its calendar year.
Accounts Payable - ------------ANS: Accounts Payable is a strategic, value added
accounting function that performs the primary non-payroll disbursement functions in
an organization
Accounts Receivable - ------------ANS: Amounts due to the reporting company from
customers. Accounts receivable is considered a current asset.
Accrual Accounting - ------------ANS: Accrual accounting attempts to match expenses
with revenues for a particular reporting period.
Accrual Income - ------------ANS: The difference between revenues and expenses
identified during specific periods of time. Revenue is recognized during the period it
is earned. Correspondingly, expenses are matched to the revenue they help
produce.
ACH Transactions - ------------ANS: A method for paying a vendor whereby a firm
deposits funds into the vendors bank account.
Activity Based Costing (ABC) - ------------ANS: A method to direct organization's
costs to the products and services that caused the costs to be incurred.
, Alternate Site - ------------ANS: An alternate operating location to be used by
business functions when the primary facilities are inaccessible.
Assets - ------------ANS: Resources owned by a company usually recorded in the
ledger at historical cost.
B-Notice - ------------ANS: A notification sent by a business entity to a vendor/payee
that the taxpayer identification number provided by them is incorrect, thus subjecting
the vendor/payee to possible backup withholding requirements.
Backup Withholding - ------------ANS: Under certain conditions, the business entity is
required to withhold part of a payment to a vendor subject to backup withholding.
The amount withheld is remitted to the Internal Revenue Service. Backup
withholding is usually required when a payee has failed to give the proper taxpayer
identification number to the business entity.
Balance Sheet - ------------ANS: A financial statement that lists the assets of the
reporting entity and claims against those assets. The difference between categories
is known as Owners' Equity.
Benchmarking - ------------ANS: The process of establishing a standard of
performance.
Bill of Lading - ------------ANS: Documents that typically accompany a shipment
transferring custody of the goods from the supplier to the transportation company.
Blanket Purchase Order - ------------ANS: A large purchase order covering multiple
purchases over a stated period of time.
