Accounts Payable Practice Exam

Accounts Payable  Practice Exam

About Accounts Payable
Accounts payable (AP) refer to an account of an organization’s obligation to pay to their creditors or suppliers. It is usually the short term debt, to be paid. It is also referred as AP.

The total accounts payable (AP) of an organization is listed in the current liabilities section of their balance sheet. Accounts payable accounts are debts which are to be cleared within a specific period. Usually it is the amount a company owes to its suppliers.

As per the double entry bookkeeping for financial accounts, every financial transaction has a debit and credit entry in financial books. Accounts payable is recorded after receipt of the bill or invoice from the supplier. An expense account for the good or service which was supplied to the company on credit is debited. After the bill payment, the accountant debits accounts payable to decrease the liability balance and a credit entry is applied to the cash account, thus reducing the cash balance.

Why is Accounts Payable important?
Accounts payable or AP is crucial section in a company's balance sheet. Its increase indicates more purchases by the company on credit. If it reduces, it indicates that the company is clearing its outstanding especially to its suppliers.

Managing accounts payable is crucial to manage cash flow for the organization. It helps the organization to be aware of its outstanding and short term debt to be paid first.

Important Accounts Payable Concepts
Accounts Payable involves various financial concepts which includes

• Accounting Basics
• Accounting Documents
• Financial Accounting
• Internal controls, risk management and compliance
• Collections

Who should take the Accounts Payable Exam?
The Accounts Payable Exam is suitable for accounting and finance professionals and managers who want to certify and sharpen their Accounts Payable skills and knowledge.

Students and fresher also gain immensely by taking the Accounts Payable exam.

Accounts Payable Exam Objectives
Accounts Payable Exam checks your skills and knowledge in managing and reconciling accounts payable.

Accounts Payable Exam Prerequisite

Accounts Payable has no prerequisites. Candidate should be well versed  in accounts payable to clear the exam.

Accounts Payable Certification Course Outline

1. Accounting Basics
1.1 Meaning of Accounting
1.2 Basics of Bookkeeping and Accounting
1.3 Accounting Concepts and Principles
1.4 Branches of Accounting
1.5 Classification of Expense, Income, Assets and Liabilities
1.6 Financial Statements
1.7 Systems of Accounting  

2. Accounting Documents
2.1 Source Document
2.2 Journal
2.3 Ledger  
2.4 Trial Balance
2.5 Subsidiary Books
2.6 Types of Subsidiary Books
2.7 Journal Proper
2.8 Cash Book
2.9 Bank Pass Book
2.10 Petty Cash Book
2.11 Imprest system
2.12 Bank Reconciliation Statement

3. Financial Accounting
3.1 Rectification of Errors
3.2 Suspense Account
3.3 Capital Expenditure and Revenue Expenditure
3.4 Capital Receipts and Revenue Receipts

4. Accounts Payable
4.1 Internal controls, risk management and compliance
4.2 Invoice processing and handling
4.3 Applying technology
4.4 Collections
4.5 Best Practices


Exam Format and Information

Certification name – Accounts Payable
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees - INR 1199