July 31, 2014
City of Mount Pleasant Tennessee
Ms. Holly Alsup
Finance Director
100 Public Square
Mount Pleasant, Tennessee 38474
VIA ELECTRONIC MAIL
Dear Ms. Alsup:
Responsive to your request, the following sample examinations are presented for your account payable
clerk opening to assess the job knowledge of candidates for the position:
o Accounting Coach.Com – Accounts Payable Clerk Exam
o Account Clerk Sample Exam
o Account Clerk 1 Sample Test
In addition, sample interview questions for the position are enclosed for your review and information.
Please let me know if you have any questions or require any additional assistance on this matter.
Very truly yours,
Jeffrey J. Broughton
Municipal Management Consultant
Accounting Coach.com - Accounts Payable 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 __________.
9. The three-way match involves the following: the company's __________order, the
vendor's __________, and the company's __________ report or ticket.
10. 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 $__________.
11. 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 $__________.
12. 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%
13. The Internal Revenue Service form to be issued for amounts paid to independent contractors (that are
not corporations) for services provided is: Form 1099-MISC
Form W-2
Form W-3
14. The Internal Revenue Service form used to request a taxpayer identification number from a vendor is:
Form 1096
Form W-3
Form W-9
15. 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.
16. The amounts accrued at the end of the current accounting period often become the amounts in
the__________ entry in the subsequent accounting period.
17. 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.
18. The segregation or separation of duties and the safeguarding of checks are two examples of an
important topic known as __________controls.
ANSWERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Liability
Credit
Debit
Receivable
Trade
Purchase order
Vendors
Voucher
Purchase, Invoice, Receiving
$980
$1,881
36%
Form 1099-MISC
Form W-9
Adjusting
Reversing
Prepaid
Internal
Source: http://www.accountingcoach.com/accounts-payable/quiz
ACCOUNTING COMPETENCY EXAM
SAMPLE EXAM
1.
The accounting process does not include:
a.
b.
c.
2.
d.
e.
labor unions
all of the above
statement of owner’s equity
income statement
balance sheet
d.
e.
both b and c
all of the above
This account does not appear on the income statement:
a.
b.
c.
6.
lenders
prospective owners
customers
Expenses can be found in the:
a.
b.
c.
5.
balance sheet
balance sheet and journals
balance sheet and income statement
income statement
none of the above
External users of financial accounting information include:
a.
b.
c.
4.
d. observing
e. classifying
The financial statement or statements that pertain to a stated period of time is (are) the:
a.
b.
c.
d.
e.
3.
interpreting
reporting
purchasing
accumulated depreciation
depreciation expense
sales revenue
d.
e.
marketing expense
interest expense
A brand new company has a building costing $10,000, machinery costing $5,000, cash of
$700, and a bank loan of $7,850. What is the owner’s equity?
a.
b.
c.
$8,850
$15,700
$7,750
d.
e.
cannot be determined
$7,850
7.
An example of an economic exchange includes:
a.
b.
c.
d.
e.
8.
If a company has owner’s equity of $100,000,
a.
b.
c.
d.
e.
9.
a business owner purchases inventory on credit
a dry cleaning business cleans 3 dresses for a customer
an insurance agent sells a whole life policy
a contractor purchases a new truck for cash
all of the above
assets minus liabilities equal $100,000
total assets must equal $100,000
net income for the past year was $100,000
a total of $100,000 was invested by the owner
none of the above
Providing services on account for $40,000 would:
a.
b.
c.
d.
e.
increase cash $40,000, decrease accounts receivable $40,000
decrease accounts receivable $40,000, decrease owner’s equity $40,000
increase accounts receivable $40,000, increase owner’s equity $40,000
increase accounts receivable $40,000, decrease owner’s equity $40,000
none of the above
Use the following information to answer the next four questions.
Joseph Forbes is the owner of his own business. On December 31, Forbes’ assets, liabilities,
revenues and expenses were:
Insurance Expenses
Miscellaneous Expenses
Rent Expenses
Salaries Expense
Supplies Expense
Services Performed
10.
Accounts Payable
Accounts Receivable
Cash
Equipment
Notes Payable
Supplies on hand
On December 31, total assets are equal to:
a.
b.
c.
11.
$3,000
900
2,500
19,000
1,200
45,000
$25,700
$19,700
$22,100
d.
e.
$30,700
none of the above
d.
e.
$17,400
none of the above
On December 31, net income is equal to:
a.
b.
$18,400
$45,000
$4,000
5,000
14,000
11,000
4,600
700
12.
On December 31, if net income equals $15,000 and the ending owner’s equity is $20,000,
and Forbes invested an additional $2,600 in his business, while withdrawing $6,000
during the year, the beginning owner’s equity for this year was:
a.
b.
c.
13.
$9,000
$19,700
$19,000
$23,000
none of the above
Debit accounts receivable $7,000; credit service revenue $7,000
Debit notes receivable $7,000; credit service revenue $7,000
Debit cash $7,000; credit service revenue $7,000
Debit service revenue $3,000; credit accounts receivable $7,000
none of the above
Current Landscaping paid salaries of $560 in cash. The accounting entry is:
a.
b.
c.
d.
e.
16.
$7,430
none of the above
New Font Software provided services for customers of $7,000. What is the entry if it
billed customers for the total amount.
a.
b.
c.
d.
e.
15.
d.
e.
On December 31, current assets equal:
a.
b.
c.
d.
e.
14.
$7,100
$7,400
$8,400
Debit salaries expense $560; credit salaries payable $560
Debit salaried expense $560; credit cash $560
Debit cash $560; credit salaries expense $560
Debit accounts payable $560; credit cash $560
none of the above
The Philip Company received a bill for natural gas. The bill is for $550 and is payable in
30 days. The accounting entry is:
a.
b.
c.
d.
e.
Debit accounts receivable $550; credit service revenue $550
Debit accounts payable $550; credit cash $550
Debit natural gas expense $550; credit accounts payable $550
Debit natural gas expense $550; credit cash $550
none of the above
17.
The following includes the accounts of the Perry Company on December 31. What is the
total trial balance?
Accounts Receivable
Cash
Equipment
Salaries Expense
Revenue Earned
Rent Expense
a.
b.
c.
18.
$11,900
$12,000
$9,100
d.
e.
250
300
50
3,050
6,050
$11,600
none of the above
An owner invests personal cash on his/her business
Purchase of $ 100 of supplies; some cash and the rest on account
Purchase three kinds of supplies for cash
Received cash from customers as payment for services
none of the above
Cross-indexing:
a.
b.
c.
d.
e.
20.
Supplies Expense
Drawing Account
Advertising Expense
Accounts Payable
Capital Account
Which of the following transactions require a compound journal entry?
a.
b.
c.
d.
e.
19.
$1,000
4,500
4,000
1,600
2,800
200
shows the analysis of each transaction.
ties the journal and ledger together.
supplies an explanation of each transaction
removes complicated explanations from the accounts.
c and d
A truck was purchased on July 1 for $20,000. The estimated salvage value is $2,000. The
estimated useful life is 3 years. Using straight-line method of depreciation, the amount of
depreciation in the adjusting entry at fiscal year-end on December 31 is:
a.
b.
c.
d.
Depreciation Expense-Truck
Accumulated Depreciation-Truck
Accumulated Depreciation- Truck
Depreciation Expense- Truck
Depreciation Expense- Truck
Accumulated Depreciation- Truck
Depreciation Expense- Truck
Accumulated Depreciation- Truck
$555.56
$555.56
$1,500
$1,500
$500
$500
$3,000
3,000
21.
A company paid in advance $4,800 for two years of prepaid insurance, which started on
May 1. The adjusting entry on fiscal year ending December 31 of that year is:
a.
b.
c.
d.
22.
On December 1 a company purchased supplies for $1,300. On December 31, an actual
physical inventory showed that $800 of supplies were on hand. The closing adjusting
entry is:
a.
b.
c.
d.
23.
Prepare financial statements
Post journal entries to the accounts in the ledger
Journalize transactions in the journal
Analyze transactions by examining source documents
The Futures Company had revenues of $50,000 and expenses of $30,000 for the year. Mr.
Futures withdrew $5,000 from the business during the year. The accounting entry to close
the Income Summary Account is:
a.
b.
c.
d.
25.
Debit Supplies Expense; Credit Supplies on Hand, $800
Debit Supplies Expense; Credit Supplies on Hand, $1,300
Debit Supplies Expense; Credit Supplies on Hand, $500
Debit Supplies on Hand; Credit Cash, $500
The first step in the accounting cycle is:
a.
b.
c.
d.
24.
Debit Insurance Expense; Credit Prepaid Insurance, $1,200
Debit Insurance Expense; Credit Prepaid Insurance, $800
Debit Prepaid Insurance; Credit Insurance Expense , $1,600
Debit Insurance Expense; Credit Prepaid Insurance, $1,600
Income Summary
Mr. Futures capital
Mr. Futures capital
Income Summary
Income Summary
Mr. Futures Drawing
Mr. Futures, Drawing
Income Summary
$20,000
$20,000
$20,000
$20,000
$5,000
$5,000
$5,000
$ 5,000
An example of an adjusting entry for deferred items is:
a.
b.
expense to asset
asset to expense
c.
d.
revenue to liability
liability to expense
26.
CMU Corp, has 4 500,000 of accounts receivable and has found an average 3 percent of
its credit sales are uncollectible. Suppose CMU Corp. determines that a customer owing
$10,000 will never pay. What would be the journal entry?
a.
b.
c.
d.
27.
10,000
10,000
0
$15
$20
d.
e.
$40
none of the above
o
$3
c.
d.
$9
$30
Identify the advantage(s) of recognizing revenue at the time of sale.
a.
b.
c.
d.
30.
300
Warriner, Ltd. Sells widgets for $100, costing $70 with payments to be made in 10 equal
installments of $10. If 3 payments have been received this year, using the installment
basis of revenue recognition, what is the realized profit?
a.
b.
29.
$300
Rowe Inc. has a contract to construct a building for a price of $100. So far it has spent
$60 of costs and it estimates an additional $20 will be needed to finish the building. How
much profit can be recognized using the percentage of completion method?
a.
b.
c.
28.
Uncollectible Accounts Expense
$300
Allowance for Uncollectible Accounts
Allowance for Uncollectible Accounts
300
Accounts Receivable
Uncollectible Accounts Expense
10,000
Allowance for Uncollectible Accounts
Allowance for Uncollectible Accounts
10,000
Accounts Receivable
The actual transaction is an observable event.
The likelihood of the sold item being returned for credit is remote.
All of the above
None of the above
Rowe, Inc. has a contract to construct a building for a price of $100. So far it has spent
$60 of costs and it estimates an additional $20 will be needed to finish the building. How
much profit can be recognized using the completed contract method?
a.
b.
0
$15
c.
d.
$20
$40
Using the following 2 tables, answer the next four questions.
Date
Beginning Inventory
February 3
April 10
June 12
August 20
Total
Date
March 5
May 2
July 4
September 1
31.
Price
$6
6
10
10
$190
$229
c.
d.
identification
$160
$369
$179
$190
c.
d.
$269
$369
Determine the LIFO cost of ending inventory
a.
b.
34.
Sales
Units
5
10
2
8
25
Total cost
$30
20
75
84
160
369
Determine the FIFO cost of ending inventory
a.
b.
33.
Units Identified
February
April
June
June
Determine the cost of ending inventory under specific
a.
b.
32.
Table of Inventory Purchases
Units
Unit Cost
10
$3
5
4
15
5
12
7
20
8
62
$185
$174
c.
d.
$190
$369
Determine the ending inventory under weighted average method.
a.
b.
$190
$220
c.
d.
$249
$369
Total
$30
60
20
80
$190
35.
From merchandiser’s income statement you know that Sales revenue is $ 650,000 and the
gross margin is 20%. What is the cost of Goods Sold?
a.
b.
36.
$650,000
$130,000
c.
d.
$26,000
$520,000
A manufacturer has beginning and ending finished goods inventory of $70, 000 and
$90,000 respectively. Also, the cost of goods manufactured is $200,000. What is the Cost
of Goods Sold?
a.
b.
$20,000
$70,000
c.
d.
$180,000
$270,000
Using the following table answer the next four questions.
Machine Purchase price
Estimated Salvage Value
Estimated Useful Life
Estimated Units of Production1
37.
What is the depreciation on the second year using the straight-line method?
a.
b.
38.
c.
d.
$12,000
$16,000
$4,000
$10,000
c.
d.
$20,000
$27,000
What is the depreciation in the second year using the sum-of-the-years’-digits method?
a.
b.
40.
0
$5,000
What is the depreciation using the units of production method in the second year when
4,000 units are made?
a.
b.
39.
$80,000
$20,000
5 years
2,000
$36,000
$48,000
c.
d.
$16,000
$21,333
What is the depreciation using the double declining balance method in the second year?
a.
b.
$32,000
$11,520
c.
d.
$19,200
$8,800
41.
When a plant asset is retired from productive service and has no salvage value, and that
originally cost $50,000 and had accumulated depreciation of $40,000, the correct
accounting treatment is:
a.
b.
c.
d.
42.
Brooks Company declared a cash dividend of $5,000 on June 1 and paid it on September
1. What would be the journal entry or entries?
a.
b.
c.
d.
43.
Plant Asset
$50,000
Accumulated Depreciation
$40,000
Loss
10,000
Loss
10,000
Accumulated Depreciation
40,000
Plant Asset
50,000
Loss on Plant Asset
10,000
Plant Asset
10,000
Nothing. The firm still has it.
Depletion Expense
$5,000
Accumulated Depletion
Depletion Expense
5,000
Cash
Depletion Expense
5,000
Depletable Asset
Accumulated Depletion
5,000
Depletion Expense
$5,000
5,000
5,000
5,000
Smith. Corp. sold 100 shares of $50 par value common stock for $70 per share. What
would be the correct journal entry?
a.
Cash
b.
Cash
$7,000
Common Stock
c.
d.
Common Stock
Paid in Capital
Common Stock
Cash
Cash
Common Stock
Paid in Capital
$7,000
7,000
5,000
2,000
7,000
7,000
7,000
2,000
5,000
44.
Park Inc. earned EBIT $10,000,000 last year. If its tax rate was 40%, interest expense
$2,000,000 and number of common shared 1,000,000 what would be the EPS?
a.
b.
45.
b.
c.
d.
$4.80
$4.00
Retained Earnings
$5,000
Cash
Retained Earnings
5,000
Dividends Payable
Dividends Payable
5,000
Cash
Retained Earnings
5,000
Dividends Payable
Retained Earnings
5,000
Dividend Payable
Dividends Payable
5,000
Cash
$5,000
5,000
5,000
5,000
5,000
5,000
A corporation issues $50,000 of a 8% coupon, $1,000 par value bond. What would be the
semi-annual interest payment journal entry?
a.
b.
c.
d.
47.
c.
d.
Brooks Co. declared and paid a cash dividend of $5,000. What would be the journal
entries?
a.
46.
$8.00
$6.00
Bands Payable
Cash
Bonds Interest Expense
Cash
Bonds Payable
Cash
Bond Interest expense
Chas
$4,000
$4,000
4,000
4,000
2,000
2,000
2,000
2,000
Given the following balance sheets of three firms, which appears to have greater financial
leverage?
Debt
Equity
Total Assets
a.
b.
c.
d.
Firm A
Firm B
Firm C
All the same
Firm A
$2
$8
$10
Firm B
$40
$60
$100
Firm C
$15
$35
$50
48.
Given the following income statements of three companies, which appears to have
greater financial leverage based upon the times interest earned ratio which is EBIT
divided by interest?
EBIT
Interest
EBT
Taxes
EAT
a.
b.
c.
d.
49.
Firm B
$100
15
85
45
40
Firm C
$75
5
70
50
20
Firm A
Firm B
Firm C
All the same
What is the maximum life that the intangible asset patent value can be amortized?
a.
b.
c.
d.
50.
Firm A
$50
10
40
20
20
The asset’s legal life
The useful life
17 years
40 years
A company is being sued for $100,000. What would be recorded on the balance sheet?
a.
b.
c.
d.
Nothing
$100,000 Set-aside Cash
$100,000 Liability
$100,000 Contingent Liability
SAMPLE EXAM KEY
1.
c, see p. R4
26.
d, see p. R65
2.
d, see p. R9
27.
b, see p. R64
3.
e, see pp.R5-R6
28.
c, see p. R63
4.
b, see p. R9
29.
a, see p. R62
5.
a, see p. R9
30.
a, see p. R64
6.
e, see p. R13
31.
b, see p. R72
7.
e, see p. R17
32.
c, see p. R73
8.
a, see pp.R18-R19
33.
b, see pp.R73-R74
9.
c, see p. R22
34.
b, see p. R74-75
10.
d, see pp.R11, R25
35.
d, see p. R69
11.
a, see pp.R9, R25
36.
c, see p. R69
12.
c, see pp.R9-R10
37.
c, see p. R80
13.
b, see p. R11
38.
c, see p. R80
14.
a, see p. R36
39.
c, see p. R80
15.
b, see p. R37
40.
c, see pp.R80-R81
16.
c, see p. R36
41.
b, see p. R82
17.
a, see p. R43
42.
a, see p. R81
18.
b, see pp.R42-R43
43.
b, see p. R91
19.
b, see p. R41
44.
c, see p. R93
20.
d, see p. R52
45.
d, see p. R92
21.
d, see p. R49
46.
d, see p. R88
22.
c, see p. R51
47.
b, see pp.R93-R94
23.
d, see p. R46
48.
a, see pp.R93-R94
24.
a, see p. R58
49.
c, see p. R78
25.
b, see p. R47
50.
a, see p. R88
RAMSEY COUNTY
Sample Test for Account Clerk 1
The written examination for Account Clerk 1 consists of multiple-choice questions that are divided
into the following sections: Accounting Concepts, Office Practices, Charts, Math,
The purpose of this sample exam is to give you an idea of what questions you can expect to see
on the examination. THESE ARE NOT ACTUAL TEST QUESTIONS.
Sample Name and Number Comparison Questions:
Instructions: The items in this section consist of pairs of social security numbers, names and
case numbers. You are to compare them and decided if –
A. Both sets of information are exactly alike.
B. There is an error or errors in one line.
C. There is an error(s) in two lines.
D. There is an error(s) in all three lines.
1. 465-60-3244
Henry Williams
34-104
465-60-3244
Henry Williams
34-105
4. 298-57-1138
Maria Gomez
86-701
298-57-1138
Maria Gomez
86-710
2. 378-22-9861
John Chung
52-841
387-22-9861
John Cheung
52-841
5. 174-39-0200
Lisa Popovich
65-444
174-39-2020
Lise Popovich
65-454
3. 505-77-0010
Wesley Carlson
22-117
505-77-0010
Wesley Carlson
22-117
6. 113-89-3446
Dana Obidah
55-603
113-98-3446
Dana Obidah
55-603
Sample Account Clerk Practices Questions:
7. A statement which shows the state of a business at a certain date is referred to as a –
A. Balance sheet.
B. Trial balance.
C. Profit and loss statement.
D. General journal.
8. The principle book of records in which a summary of accounts is found is referred to as
a–
A. General journal.
B. Journal.
C. Register.
D. General ledger.
9. The book in which daily entries are recorded is called a –
A. General journal.
B. Journal.
C. Register.
D. General ledger.
10. The entering of the debit and credit for each transaction in the journal is called –
A. Posting.
B. Auditing.
C. Journalizing.
D. Balancing.
11. The term “current assets: includes which of the following? –
A. Notes payable.
B. Machinery and equipment.
C. Furniture and fixtures.
D. Accounts receivable.
12. Many business firms maintain a book of original entry in which all bills to be paid are
recorded. This book is known as a –
A. Purchase returns journal.
B. Subsidiary ledger.
C. Voucher register.
D. Notes payable register.
13. A list of account balances taken from the General Ledger is known as a –
A. Trial balance.
B. Balance sheet.
C. Profit and loss statement.
D. Budget.
14. A subsidiary ledger contains account which slow –
A. Details of contingent liabilities of undetermined amount.
B. Totals of all asset accounts in the general ledger.
C. Totals of all liability accounts in the general ledger.
D. Details of an account in the general ledger.
15. A real estate dealer buys a house and lost for $44,000. He pays $1,250 for painting,
$1,750 for plumbing, and $1,000 for grading and walks. At what price must he sell the
property to make a profit of 12-1/2%? –
A. $60,000
B. $54,000
C. $56,000
D. $58,000
16. An automobile costs $1,200. It depreciated in value 45% the first year, 20% of the
reduced value the second year, and 20% of the reduced value the third year. What was
it worth at the end of the third year? –
A. $4325.00
B. $432.00
C. $180.00
D. $422.40
17. An investor invests $3,026 into a savings account. The interest on the account is 31/2%, and the investor invests the money for one and one-half years. What will her
simple interest be? –
A. $153.47
B. $110.88
C. $158.86
D. $105.91
18. Add the following: 46.019 + 32.15 + 21.0304 + 0.630 =
A. 99.8294
B. 930.763
C. 9982.94
D. 93.0763
ANSWER KEY:
1. – B
2. – C
3. – A
4. – B
5. – D
6. – B
7. – A
8. – D
9. – B
10. – C
11. – D
12. – C
13. – A
14. – D
15. – B
16. – D
17. – C
18. - A
Account Payable Clerk Interview Questions
1.
2.
3.
4.
5.
What is a Non-PO Invoice?
What is a tolerance limit with respect to invoice processing?
What is debit and credit from the banks point of view?
Please explain end to end process of accounts payable?
What is a work flow? And take Retail shop as example and explain the Work flow of the
Retail shop?
6. What is the difference between Payments-Liquidation (Disbursements) & Dividend
Warrants Liquidation?
7. What are the steps involved in finalization?
8. What is the Debit Balance recovery? How will we recover if we won’t have any future
transactions from supplier?
9. Which area of accounting are you strongest? Which area of accounting would you like to
improve?
10. What is the meaning of TDS? How it is charged?
11. What is interest on Capital?
12. What is another name for a real account in accounting? Is it a permanent account or a
temporary account?
13. What is consolidation?
14. What is different between automatic Payments Batches and automatic payments?
15. What are steps to define supplier?
16. What steps would you take before making a payment?
17. What is debit and credit from the customer point of view?
18. What is debit and credit from the banks point of view?
19. What do you understand by Intercompany Settlement?
20. What is the difference between EFT & Wire?
21. What do you mean by Mischarge Correction?
22. Where would you like to be in five years? Ten years?
23. What made you choose to apply to Accounts payable?
24. What have you learned from your past jobs?
25. Tell me about your last position and what you did?
26. What do you know about the position of Accounts payable?
27. What are key tasks for Accounts payable?
28. What are top 3 knowledge/top 3 skills for Accounts payable?
29. How to measure/appraise your position: Accounts payable?