Purchase Transactions Practice Exam

Purchase Transactions Practice Exam

The Purchase Transactions Exam assesses an individual's understanding of fundamental accounting principles related to the acquisition of goods or services by a business.

Who should take this exam?

This exam is ideal for individuals seeking to:

• Gain a foundational understanding of purchase transactions and their impact on financial statements.
• Demonstrate proficiency in recording and analyzing purchase-related data.
• Prepare for entry-level accounting positions or further accounting qualifications.

Roles and responsibilities relevant to this exam may include:

• Accounts Payable Clerks
• Bookkeepers
• Purchasing Agents
• Entry-level accountants

Exam Details:

• Format: Usually multiple-choice, true/false, or a combination.
• Duration: Typically 1-2 hours.
• Passing Score: typically between 70% - 80%.
• Delivery: May be offered at testing centers or online.

Exam Course Outline 

1. Understanding the Purchase Process:

• Purchase requisition, purchase order, and vendor selection.
• Receiving goods and inspecting their quality and quantity.
• Receiving and processing invoices.

2. Recording Purchase Transactions:

• Understanding different types of purchase accounts (e.g., Accounts Payable, Inventory).
• Recording purchases in journals and ledgers (e.g., Purchase Book).

3. Calculating Purchase Costs:

• Applying trade discounts, cash discounts, and freight charges.
• Calculating the total landed cost of purchased goods.

4. Handling Purchase Returns and Allowances:

• Recording purchase returns and allowances in the accounting system.
• Understanding their impact on purchase costs and inventory records.

5. Analyzing Purchase Data:

• Using purchase reports to identify trends and make informed business decisions.