Accounts Payable

(Practice Quiz)

1. The general ledger account Accounts Payable is a current __________ account.

2. A __________ balance is typical for Accounts Payable.

Debit Credit
3. The balance in Accounts Payable is decreased with a __________ entry.
Debit Credit
4. An account payable on the books of the buyer should be an account __________ on the books of
the seller.

5. Accounts payable are also known as __________ payables.

6. PO is the abbreviation for __________ __________.

7. Suppliers are also referred to as __________.

Vendors Debtors
8. A form or record sometimes used to assemble the documentation and approvals necessary for
paying a vendor's invoice is a __________.

The three-way match involves the following:

9. the company's __________ order,

10. the vendor's __________, and

11. the company's __________ report or ticket.

12. A $1,000 invoice from a supplier has terms of 2/10, n/30. The amount that should be remitted to
the supplier if the amount is paid within the discount period is $__________.

13. A $2,000 invoice from a supplier for goods has terms of 1/10, n/30. If $100 of the goods were
returned to the seller, the amount to be remitted within the discount period is $__________.

14. A discount of 2% for paying within 10 days instead of 30 days amounts to an annual percentage
rate closest to
2% 24% 36% 72%
15. The Internal Revenue Service form to be issued for amounts paid to independent contractors (that
are not corporations) for services provided is
Form 1099-NEC Form W-2 Form W-3
16. The Internal Revenue Service form used to request a taxpayer identification number from a
vendor is
Form 1096 Form W-3 Form W-9
17. Under the accrual method of accounting, the expenses that have been incurred but not yet entered
as accounts payable should be part of an accrual-type __________ entry.

18. The amounts accrued at the end of the current accounting period often become the amounts in the
__________ entry in the subsequent accounting period.

19. Paying the insurance premium on December 20 for the six-month period beginning 12 days later
should result in a debit balance in the asset account __________ Insurance.

20. The segregation or separation of duties and the safeguarding of checks are two examples of an
important topic known as __________ controls.
Answers
1. Liability
2. Credit
3. Debit
4. Receivable
5. Trade
6. Purchase Order
7. Vendors
8. Voucher
9. Purchase
10. Invoice
11. Receiving
12. $980
13. $1,881
14. 36%
15. Form 1099-NEC
16. Form W-9
17. Adjusting
18. Reversing
19. Prepaid
20. Internal