I85PREP
⌘ K
CAPA study materials
CAPA study resources

CAPA (CNCF) practice questions

One question at a time. Build your CAPA understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Accounts Payable

Which document typically serves as the supplier's formal request for payment and itemizes the goods or services delivered?

  1. Remittance advice
  2. Vendor invoice Correct answer.
  3. Purchase requisition
  4. Receiving report

Explanation

A vendor invoice is issued by the supplier and states the amount owed for goods or services delivered. It is the primary document against which the buyer matches its records before paying.

Question 2Accounts Payable

In a standard three-way match, which three documents are compared before an invoice is approved for payment?

  1. Purchase order, receiving report, invoice Correct answer.
  2. Contract, budget, general ledger
  3. Invoice, remittance advice, check
  4. Requisition, journal entry, bank statement

Explanation

The three-way match compares the purchase order, the receiving report, and the supplier invoice for price and quantity agreement. This control confirms the organization ordered, received, and was billed for the same items.

Question 3Accounts Payable

What is the primary purpose of the accounts payable subsidiary ledger?

  1. To track amounts owed to each individual vendor Correct answer.
  2. To calculate depreciation expense
  3. To record payroll tax withholdings
  4. To reconcile the fixed asset register

Explanation

The AP subsidiary ledger maintains a separate record of the balance owed to each vendor. Its total should agree with the accounts payable control account in the general ledger.

Question 4Accounts Payable

Which payment method produces a remittance that the supplier can deposit directly without the buyer issuing a separate paper check?

  1. Automated clearing house (ACH) transfer Correct answer.
  2. Imprest fund disbursement
  3. Cash on delivery
  4. Petty cash voucher

Explanation

An ACH transfer moves funds electronically between bank accounts and settles directly into the supplier's account. It replaces the need for a paper check and separate deposit.

Question 5Accounts Payable

A supplier offers terms of 2/10, net 30. What does this mean?

  1. A 30% discount applies if paid within 10 days; balance due in 2 days
  2. A 2% penalty applies after 10 days; full amount due in 30 days
  3. A 10% discount applies if paid within 2 days; full amount due in 30 days
  4. A 2% discount applies if paid within 10 days; full amount due in 30 days Correct answer.

Explanation

The notation 2/10, net 30 means a 2% discount is available if the invoice is paid within 10 days, otherwise the net amount is due within 30 days. The first number is the discount rate and the second is the discount period.

Question 6Accounts Payable

Which internal control best reduces the risk of a single AP clerk creating a fictitious vendor and paying it?

  1. Increasing the clerk's transaction limits
  2. Requiring segregation of duties between vendor setup and payment approval Correct answer.
  3. Paying all invoices immediately upon receipt
  4. Allowing the same clerk to add vendors and approve payments

Explanation

Separating vendor master maintenance from payment approval prevents one person from both creating a payee and authorizing its payment. This segregation is a fundamental fraud-prevention control in AP.

Question 7Accounts Payable

An invoice is received for goods that were never ordered and never received. In a three-way match environment, what should happen to this invoice?

  1. Pay it to preserve the supplier relationship
  2. Hold or reject it because it fails the match Correct answer.
  3. Post it directly to the general ledger
  4. Route it to payroll for processing

Explanation

An invoice with no supporting purchase order or receiving report fails the three-way match and should be held or rejected pending investigation. Paying unmatched invoices defeats the control.

Question 8Accounts Payable

What does the term 'aging' refer to in an accounts payable aging report?

  1. The credit rating of the supplier
  2. The classification of unpaid invoices by how long they have been outstanding Correct answer.
  3. The depreciation schedule of payables
  4. The interest accrued on long-term debt

Explanation

An AP aging report groups open invoices into time buckets based on their due dates or invoice dates. It helps management see which liabilities are current and which are overdue.

Question 9Accounts Payable

A company receives an invoice for $5,000 with terms 2/10, net 30 and pays within the discount period. What amount is remitted?

  1. $4,500
  2. $4,900 Correct answer.
  3. $5,000
  4. $5,100

Explanation

A 2% discount on $5,000 equals $100, so the amount paid within the discount period is $4,900. The discount is taken only when payment occurs within the 10-day window.

Question 10Accounts Payable

An AP clerk records an invoice in the general ledger but the corresponding entry in the AP subsidiary ledger is omitted. What is the effect?

  1. The control account and subsidiary ledger will not reconcile Correct answer.
  2. Both ledgers remain in agreement
  3. The vendor balance is overstated in the subsidiary ledger
  4. The invoice is automatically paid

Explanation

The AP control account in the general ledger and the total of the subsidiary ledger should always agree. Omitting the subsidiary entry creates a reconciling difference between the two records.

Question 11Accounts Payable

Which of the following best describes a 'debit memo' issued by a buyer to a supplier?

  1. A request for the supplier to increase the invoice amount
  2. A document authorizing a new purchase order
  3. A confirmation that payment has been received
  4. A notice reducing the amount owed to the supplier, often for returns or shortages Correct answer.

Explanation

A debit memo informs the supplier that the buyer is reducing the payable, typically because of returned goods, shortages, or price discrepancies. It effectively offsets part of the amount owed.

Question 12Accounts Payable

What is the key distinction between a purchase order and a vendor invoice?

  1. Both are issued by the supplier
  2. They are identical documents used interchangeably
  3. The invoice authorizes the purchase; the purchase order requests payment
  4. The purchase order is issued by the buyer to order goods; the invoice is issued by the supplier to bill for them Correct answer.

Explanation

The buyer creates the purchase order to authorize and describe the purchase, while the supplier issues the invoice to request payment. Matching them confirms the billed amount aligns with what was ordered.

Question 13Accounts Payable

An organization requires that all vendor master file changes be reviewed and approved by a manager independent of the AP processing team. Which risk does this control primarily mitigate?

  1. Duplicate payment of legitimate invoices
  2. Miscalculation of employee overtime
  3. Creation of fictitious vendors or altered bank details for fraudulent payment Correct answer.
  4. Errors in calculating sales tax

Explanation

Independent review of vendor master changes prevents unauthorized additions or alterations, such as inserting a fraudulent bank account. These changes are a common vector for payment diversion fraud.

Question 14Accounts Payable

A supplier ships 100 units but the receiving report shows only 95 units received. The invoice bills for 100 units. Under a three-way match, how should AP respond?

  1. Return the entire shipment without notifying anyone
  2. Pay for 95 units or hold the invoice pending resolution of the discrepancy Correct answer.
  3. Pay the full invoice for 100 units
  4. Ignore the receiving report and pay the invoice

Explanation

The match reveals a quantity discrepancy between the invoice and the receiving report. AP should pay only for confirmed receipts or hold the invoice until the difference is resolved with the supplier.

Question 15Accounts Payable

What is the purpose of a 'payable hold' status on an invoice?

  1. To prevent payment until a discrepancy or approval issue is resolved Correct answer.
  2. To indicate the invoice has been fully paid
  3. To convert the invoice into a purchase order
  4. To record the invoice as a fixed asset

Explanation

A payable hold flags an invoice so it is excluded from the payment run until an open issue, such as a mismatch or missing approval, is cleared. It prevents premature or erroneous payment.

Question 16Accounts Payable

A company's AP department pays every invoice on the day it is received, regardless of due date. Which consequence is most likely?

  1. Guaranteed eligibility for all early-payment discounts
  2. Lost float and reduced working capital benefit Correct answer.
  3. Improved cash flow and higher investment income
  4. Elimination of duplicate payments

Explanation

Paying immediately forfeits the float benefit of holding cash until the due date, reducing available working capital. Efficient AP captures terms while preserving cash as long as permitted.

Question 17Accounts Payable

Which document should be reviewed to confirm that a supplier's bank account details are legitimate before changing payment instructions?

  1. An independently verified vendor master record or callback confirmation Correct answer.
  2. The aging report
  3. The receiving report
  4. The original purchase order

Explanation

Bank detail changes should be verified against an independent source or through a callback to a known contact, not the request itself. This defends against business email compromise and payment diversion.

Question 18Accounts Payable

An invoice for $2,000 dated June 1 has terms 1/15, net 45. If payment is made on June 20, what amount is due?

  1. $2,000 Correct answer.
  2. $1,800
  3. $1,980
  4. $2,020

Explanation

The 1% discount requires payment within 15 days, meaning by June 16. A June 20 payment falls outside the discount window, so the full $2,000 is due within the net 45-day period.

Question 19Accounts Payable

What is a 'clearing account' used for in AP processing?

  1. A reserve for bad debts
  2. An account that permanently stores paid invoices
  3. A ledger for tracking shareholder equity
  4. A temporary account holding transactions until they are matched and posted to their final accounts Correct answer.

Explanation

A clearing or suspense account temporarily holds entries, such as unmatched receipts or invoices, until they are validated and reclassified. It keeps the general ledger accurate while discrepancies are resolved.

Question 20Accounts Payable

A company pays a supplier twice for the same invoice because the invoice was entered under two different invoice numbers. Which control most directly prevents this?

  1. Matching invoice numbers and amounts against prior payments before processing Correct answer.
  2. Requiring purchase orders for all purchases
  3. Reconciling the bank statement monthly
  4. Segregating vendor setup from payment approval

Explanation

Duplicate payment detection compares new invoices against historical payments by invoice number, amount, and vendor. This control catches the same obligation entered under different identifiers.

Question 21Accounts Payable

An organization uses an evaluated receipts settlement (ERS) process. How does this change AP's reliance on supplier invoices?

  1. Payment is triggered by receipt and purchase order data, reducing reliance on invoices Correct answer.
  2. Payments are made only after year-end close
  3. Suppliers must submit paper invoices for every shipment
  4. Invoices become the sole basis for payment

Explanation

Under ERS, payment is generated from approved purchase order and receipt data rather than a supplier invoice. This reduces invoice handling and matching effort while maintaining control.

Question 22Accounts Payable

A supplier invoice includes freight charges that were not on the purchase order, though the goods were received as ordered. How should AP treat this under a typical match policy?

  1. Record the freight as a fixed asset
  2. Investigate the freight charge and resolve the price variance before payment Correct answer.
  3. Reject the entire shipment
  4. Pay the invoice in full without review

Explanation

A charge not supported by the purchase order creates a price variance that must be investigated and resolved. Only after validating the freight charge should AP approve payment.

Question 23Accounts Payable

Which scenario most clearly indicates a potential 'vendor master' fraud scheme?

  1. A supplier's address matches its remittance address
  2. An invoice matches its purchase order and receiving report
  3. A payment is made within the discount period
  4. A vendor is added with a bank account that matches an employee's personal account Correct answer.

Explanation

A vendor bank account matching an employee's personal account suggests payment diversion to an employee. This is a red flag for vendor master fraud requiring investigation.

Question 24Accounts Payable

A company's AP aging report shows a large cluster of invoices in the 90+ day bucket that were never paid despite being valid. Which root cause is most consistent with this pattern?

  1. The company paid all invoices early
  2. Invoices were held indefinitely due to unresolved discrepancies or lost approvals Correct answer.
  3. The supplier offered no payment terms
  4. The invoices were all duplicate payments

Explanation

Valid invoices aging beyond 90 days often reflect unresolved holds, missing approvals, or processing breakdowns that stalled payment. Investigating the hold reasons identifies the root cause.

Question 25Accounts Payable

An AP manager wants to detect payments made to vendors with no purchase order and no receiving report over the past quarter. Which approach best supports this analysis?

  1. Recalculate depreciation schedules
  2. Review the fixed asset register
  3. Reconcile payroll withholdings
  4. Query the payment data for invoices lacking matching PO and receipt references Correct answer.

Explanation

Data analysis that flags invoices without linked purchase orders and receipts isolates unmatched payments for review. This targeted query surfaces control exceptions efficiently.

Question 26Accounts Payable

Which document typically initiates the accounts payable process by formally authorizing a purchase from a supplier?

  1. The receiving report
  2. The supplier's monthly statement
  3. The approved purchase order Correct answer.
  4. The remittance advice

Explanation

The purchases cycle begins with an approved purchase order that authorizes the buyer to acquire goods or services on stated terms. Later documents such as receiving reports and invoices are matched against it. Statements and remittance advices are payment/period-end documents, not purchase authorizations.

Question 27Accounts Payable

In a typical three-way match, which three documents are compared before an invoice is approved for payment?

  1. Purchase order, receiving report, and vendor invoice Correct answer.
  2. Purchase order, vendor statement, and check copy
  3. Receiving report, debit memo, and remittance advice
  4. Requisition, purchase order, and general ledger

Explanation

The three-way match compares the purchase order (what was ordered), the receiving report (what was received), and the vendor invoice (what is being billed). Agreement on quantities and prices supports approval for payment. The other combinations mix documents that do not establish order, receipt, and billing together.

Question 28Accounts Payable

What does a '2/10, net 30' credit term mean to the buyer?

  1. Two percent interest accrues after 10 days until the balance is paid at day 30
  2. The invoice may be paid in two installments, the first due in 10 days and the second in 30 days
  3. A 10% discount is available if paid within 2 days; otherwise the full amount is due in 30 days
  4. A 2% discount is available if paid within 10 days; otherwise the full amount is due in 30 days Correct answer.

Explanation

The notation X/Y, net Z means a discount of X percent is allowed if payment is made within Y days, with the net amount due by day Z. Here a 2% discount applies through day 10, and the full amount is due by day 30. The other readings misplace the discount rate or the discount period.

Question 29Accounts Payable

Which of the following is the primary purpose of maintaining a separate accounts payable subsidiary ledger?

  1. To track fixed asset depreciation
  2. To record each vendor's individual balance and activity in support of the control account Correct answer.
  3. To record payroll deductions
  4. To replace the general ledger entirely

Explanation

The AP subsidiary ledger holds vendor-level detail, and its total should reconcile to the AP control account in the general ledger. This provides both detail for payment decisions and a control for completeness. It does not replace the general ledger or handle payroll or depreciation.

Question 30Accounts Payable

What is a 'remittance advice' in the AP payment process?

  1. A document sent with a payment that details which invoices are being paid Correct answer.
  2. A request from a supplier to increase its credit limit
  3. An internal form authorizing a new hire in AP
  4. A report listing overdue customer receivables

Explanation

A remittance advice tells the supplier how the payment should be applied, listing the invoices and amounts covered. It reduces misapplied cash and disputes. It is not a credit request, a receivables report, or an HR form.

Question 31Accounts Payable

Which control is most appropriate to prevent a duplicate payment when the same invoice is submitted twice under different invoice numbers?

  1. Paying all invoices immediately upon receipt
  2. Matching on vendor, invoice amount, and invoice date before payment Correct answer.
  3. Approving payments verbally
  4. Relying solely on the supplier to notice the duplicate

Explanation

Duplicate detection requires comparing key attributes such as vendor, amount, and date so that renumbered copies are caught. Immediate payment removes the review window, and relying on the supplier or verbal approvals provides no reliable control.

Question 32Accounts Payable

An invoice has a gross amount of $4,000 with terms 1/10, net 30. If the buyer pays on day 8, what amount should be remitted?

  1. $4,000
  2. $3,600
  3. $3,960 Correct answer.
  4. $3,990

Explanation

A 1% discount on $4,000 equals $40, so the buyer remits $4,000 minus $40, or $3,960. Paying within the discount window earns the full discount. The other figures apply the wrong discount rate or none at all.

Question 33Accounts Payable

What is the main purpose of an AP aging report?

  1. To classify unpaid invoices by how long they have been outstanding Correct answer.
  2. To summarize sales by region
  3. To list the company's fixed assets
  4. To calculate employee overtime

Explanation

An aging report buckets open payables by age, such as current, 30, 60, and 90+ days, to highlight overdue items and support cash planning. It does not address payroll, fixed assets, or sales.

Question 34Accounts Payable

A supplier invoice for $12,000 is dated March 1 with terms 2/10, net 30. The buyer pays on March 9. What is the discount amount?

  1. $360
  2. $240 Correct answer.
  3. $0
  4. $120

Explanation

A 2% discount on $12,000 equals $240, and payment on March 9 falls within the 10-day discount period (through March 11). The buyer therefore earns the full discount. The other amounts reflect incorrect rates or a missed window.

Question 35Accounts Payable

An AP clerk notices that a supplier has changed its remittance bank account and requests that future payments go to the new account. Which action best mitigates fraud risk?

  1. Process the change immediately because the request came on supplier letterhead
  2. Independently verify the change with a known contact at the supplier using previously established contact details Correct answer.
  3. Ask the clerk who entered the vendor to approve the change
  4. Delay the change until the next annual audit

Explanation

Bank detail changes are a common fraud vector, so verification must use independently known contact information rather than details supplied in the request. Letterhead and self-approval provide no assurance. Delaying to an audit does not address the risk in a timely way.

Question 36Accounts Payable

A company takes cash discounts whenever offered but frequently pays after the discount period has closed. Which control best addresses this problem?

  1. Scheduling payments by discount expiration date with a review of discount capture performance Correct answer.
  2. Removing discount terms from the vendor master
  3. Paying all invoices on the last day of the month
  4. Paying only when the supplier sends a dunning letter

Explanation

Discount capture requires tracking due dates against discount expiration and monitoring whether discounts are actually realized. Month-end batching, stripping terms, and waiting for reminders all cause missed discounts rather than preventing them.

Question 37Accounts Payable

What does a buyer's debit memo to a supplier accomplish?

  1. It increases the amount owed to the supplier
  2. It authorizes a payroll deduction
  3. It reduces the amount owed to the supplier for a return, shortage, or price adjustment Correct answer.
  4. It serves as a formal purchase order

Explanation

A debit memo records a reduction in the payable, such as for returned goods, short shipments, or price corrections. It is not a purchase order or payroll document and does not increase the liability.

Question 38Accounts Payable

An AP specialist finds that an invoice price of $50 per unit exceeds the purchase order price of $45 per unit, though quantities match. What is the most appropriate next step?

  1. Place the invoice on hold and resolve the price variance with purchasing before payment Correct answer.
  2. Adjust the purchase order to match the invoice without review
  3. Return the goods to the supplier immediately
  4. Pay the invoice in full to preserve the supplier relationship

Explanation

A price variance between the invoice and the purchase order must be investigated and resolved before payment. Paying without review or unilaterally changing the order bypasses controls. Returning goods does not address a pricing discrepancy.

Question 39Accounts Payable

What is the primary role of a 'receiving report' in the AP process?

  1. It documents the quantity and condition of goods received, supporting the match against the order and invoice Correct answer.
  2. It records the general ledger journal entry for the purchase
  3. It serves as the supplier's request for payment
  4. It authorizes the supplier to ship goods

Explanation

The receiving report evidences what was actually delivered and in what condition, enabling comparison with the order and invoice. It does not authorize shipment, post journal entries, or request payment.

Question 40Accounts Payable

A company's AP department wants to reduce the risk of paying a supplier that is not a legitimate business. Which practice best supports this goal during vendor onboarding?

  1. Accepting the vendor's self-reported address without verification
  2. Allowing the requesting employee to activate the vendor unilaterally
  3. Skipping tax documentation for small vendors
  4. Collecting a completed W-9 and verifying the business through independent sources before activating the vendor Correct answer.

Explanation

Vendor onboarding should collect tax documentation and independently verify the business to confirm legitimacy. Self-reported data, unilateral activation, and skipping documentation all increase fraud and compliance risk.

Question 41Accounts Payable

In an evaluated receipts settlement (ERS) arrangement, how is payment typically triggered?

  1. By matching the receipt of goods to the purchase order at an agreed price, without a supplier invoice Correct answer.
  2. By a verbal confirmation from the buyer
  3. By the supplier's monthly statement
  4. By the supplier's dunning notice

Explanation

ERS eliminates the invoice by paying based on receipt data matched to the purchase order and agreed prices. Statements, verbal confirmations, and dunning notices are not part of ERS.

Question 42Accounts Payable

An AP manager wants to identify payments made without a valid purchase order or receiving report. Which approach best accomplishes this?

  1. Rely on supplier confirmations
  2. Review payments made in the last week
  3. Perform a data analytics test matching each payment to purchase order and receipt records Correct answer.
  4. Review only the largest payments

Explanation

A data analytics match of payments to purchase order and receipt records identifies payments lacking supporting documentation. Reviewing only large payments, relying on suppliers, or a one-week window leaves most payments untested.

Question 43Accounts Payable

What is the effect of recording an invoice in the AP subsidiary ledger but omitting it from the general ledger control account?

  1. The invoice will be paid automatically without review
  2. The supplier's balance will be overstated
  3. The subsidiary ledger and control account will not reconcile, indicating a posting error Correct answer.
  4. The general ledger will be correct and no issue exists

Explanation

The subsidiary ledger total should equal the control account; a one-sided posting causes a reconciliation difference. This signals an error requiring correction. It does not cause automatic payment or leave the ledger correct.

Question 44Accounts Payable

A company pays a supplier $8,000 for an invoice with terms 2/10, net 30 but misses the discount period. What is the cost of not taking the discount, expressed as the dollar amount forgone?

  1. $240
  2. $160 Correct answer.
  3. $80
  4. $0

Explanation

The forgone discount is 2% of $8,000, or $160. Missing the discount period means the buyer pays the full amount and loses that saving. The other amounts use incorrect rates or assume no cost.

Question 45Accounts Payable

A supplier's invoice includes a freight charge that was not on the purchase order, though the goods were received as ordered. What is the most appropriate AP response?

  1. Reject the entire invoice and return the goods
  2. Verify the freight terms in the purchase agreement and resolve the charge before payment Correct answer.
  3. Deduct the freight charge and pay the remainder
  4. Pay the freight charge without review

Explanation

Freight terms determine who bears shipping costs, so the charge must be checked against the purchase agreement before payment. Paying blindly or unilaterally deducting bypasses resolution, and returning conforming goods is unwarranted.

Question 46Accounts Payable

An AP analyst observes that several invoices from one vendor were paid in full despite the vendor's bank account being changed twice in one month. Which conclusion is most supportable?

  1. The pattern warrants investigation as a possible vendor fraud or control failure Correct answer.
  2. The pattern proves the invoices are duplicates
  3. The pattern confirms the vendor is legitimate
  4. The pattern is normal and requires no review

Explanation

Frequent bank account changes followed by full payments are a red flag for vendor fraud or weak change controls. The pattern does not confirm legitimacy, is not normal, and does not by itself prove duplication.

Question 47Accounts Payable

A company's AP aging report shows a large cluster of invoices in the 90+ day bucket that were valid and approved but never paid. Which is the most likely root cause to investigate first?

  1. Overpayment of suppliers
  2. Duplicate vendor records
  3. A payment run or approval workflow failure that left approved invoices unprocessed Correct answer.
  4. Excessive discount capture

Explanation

Approved, valid invoices sitting unpaid for 90+ days point to a breakdown in the payment run or approval workflow. Discount capture, overpayment, and duplicate records do not explain valid approved invoices remaining unpaid.

Question 48Accounts Payable

An AP manager wants to estimate the annual cost of forgone discounts. Which data is most essential?

  1. The company's payroll headcount
  2. The number of vendors in the master file
  3. The number of purchase orders issued
  4. Total invoice amounts eligible for discounts, the discount rate, and the proportion of discounts not taken Correct answer.

Explanation

Cost of forgone discounts equals eligible invoice value times the discount rate times the share of discounts missed. Vendor counts, headcount, and purchase order counts do not measure discount loss.

Question 49Accounts Payable

A company discovers it paid a supplier twice for the same invoice under two invoice numbers. Which recovery action is most appropriate?

  1. Write off the duplicate as immaterial
  2. Contact the supplier to request a refund or credit and document the recovery Correct answer.
  3. Ignore it because the supplier received the funds
  4. Reduce the next payment without notifying the supplier

Explanation

Duplicate payments should be recovered through a refund or credit and documented for control purposes. Writing off, ignoring, or silently netting against future payments weakens controls and may create disputes.

Question 50Accounts Payable

An AP clerk is responsible for both entering vendor invoices and approving payments to those vendors. Which control weakness does this represent?

  1. A lack of segregation of duties between recording and payment approval Correct answer.
  2. A failure of the receiving process
  3. A violation of the discount policy
  4. An excess of three-way matching

Explanation

Combining invoice entry and payment approval lets one person create and pay obligations, which is a classic segregation-of-duties weakness. It is not a matching, discount, or receiving issue.