Accounts Payable Review Questions with Certified Solutions

Accounts Payable Review Questions with Certified Solutions A CAPTIAL SUM OF MONEY DUE AS A DEBT OR USED AS A FUND FOR WHICH INTEREST IS EITHER CHARGED OR PAID IS CALLED PRINCIPAL A CHECK DRAWN ON THE BANK'S OWN ACCOUNT SIGNED BY AN AUTHORIZED BANK OFFICAL IS CALLED A CASHIER'S CHECK A LIMITED CHECK DOES NOT HAVE A TIME RESTRICTION AS TO WHEN IT CAN BE CASHED FALSE A PLAN IN WHICH PAYMENTS ARE TRANSFERRED USUALLY ELECTRONICALLY BY A PAYING AGENCY DIRECTLY TO THE ACCOUNT OF A RECIPIENT IS CALLED A DIRECT DEPOSIT A PROFIT AND LOSS STATEMENT IS ALSO KNOWN AS A STATEMENT OF INCOME AND EXPENSE TRUE A STOP PAYMENT ORDER CAN PROTECT THE PAYOR FROM LOSS RESULTING FROM STOLEN, LOST, OR INCORRECTLY DRAWN CHECKS TRUE A SYSTEM OF RECORDING CLASSIFYING AND SUMMARIZING FINANICAL TRANSACTIONS IS CALLED ACCOUNTING A TRIAL BALANCE SHOULD BE DONE ONCE PER MONTH ALL OF THE FOLLOWING ARE DETERMINANTS OF WITHHOLDING AMOUNTS EXCEPT INSURANCE DEDUCTIONS AN ACCURATELY COMPLETED PURCHASE ORDER HELPS TO ELIMINATE MISTAKES IN THE ORDER AND IN SHIPMENT TRUE AN INSURED ACCOUNT REQUIRES A MINIMUM BALANCE THAT DRAWS INTEREST AT A HIGHER PERCENTAGE THAN A REGULAR SAVINGS ACCOUNT IS CALLED A _______ACCOUNT MONEY MARKET SAVINGS ANY INDIVIDUAL CORPORATION OR LEGAL PARTY WHO SIGNS A CHECK OR ANY TYPE OF NEGOTIABLE INTRUMENT IS CONSIDERED THE MAKER ASSEST = LIABILITIES + PROPRIETORSHIP AT THE END OF THE DAY YOU DISCOVER A NUMERIC ERROR ON AN ENCOUNTER FORM, ALL OF THE FOLLOWING ACTIONS