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1. An Office supplies company requires an advance payment of $8000 for the office supplies you wish to order. You enter and pay a prepayment type invoice for $8000. You enter the standard invoice to book the expense which totals $10000 and you apply the prepayment to the standard invoice.
What are the accounting entries for that standard invoice with the prepayment application?
A) Invoice accounting - Dr Expense Account 10000 Cr AP Liability Account 10000.Prepayment application - Dr AP Liability 8000 Cr Prepayment Account 8000.
B) Invoice accounting - Dr Prepayment Account 10000 Cr AP Liability Account 10000.The prepayment application has no impact on the Invoice.
C) Invoice Accounting - Dr Prepayment Account 10000 Cr AP Liability Account 10000.Prepayment application - Dr Expense Account 8000 Cr Prepayment Account 8000.
D) Invoice accounting - Dr Expense Account 10000 Cr AP Liability Account 10000.Prepayment application - Dr AP Liability Account 2000 Cr Prepayment Account 2000.
2. Your client company wants to ensure that the payments they are sending to their financial institution are valid and formatted correctly. They would like to identify any validation failures as early in the process as possible.
Where would you suggest the validations are set?
A) Supplier Site
B) Disbursement Bank Account
C) Payment Format
D) Payment Method
E) Payment Terms
3. Which three are valid reasons why you cannot close your Payables period? (Choose three.)
A) Unapplied prepayments
B) Incomplete payment files
C) Unaccounted invoices and payments
D) Bills payable requiring maturity
E) Suppliers on payment holds
4. Which invoice types can be included in the Create Payment flow?
A) Standard, Debit Memo and Customer Refund
B) Standard, Credit Memo and Debit Memo
C) Standard, Credit Memo, and Invoice Request
D) Standard, Credit Memo and Customer Refund
5. Which three are subject area subfolders that report Payables reconciliation differences to General Ledger? (Choose three.)
A) Reconciliation Invoice Hold Details
B) Reconciliation Invoice Request Details
C) Reconciliation Payment Details
D) Reconciliation Prepayment Application Details
E) Reconciliation Invoice Details
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: A,B,C | Question # 4 Answer: B | Question # 5 Answer: B,C,E |
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