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.