Vendor Invoice Approval and Discrepancies
.docx
School
Daystar University, Machakos**We aren't endorsed by this school
Course
ACC 112
Subject
Accounting
Date
Jan 9, 2025
Pages
3
Uploaded by JusticeHummingbird4964
Vendor Invoice Approval and Discrepancies1.What is the first step in the invoice approval process in accounts payable?oa) Verifying that the invoice matches the purchase order and receiving reportob) Issuing the payment immediatelyoc) Filing the invoice for later reviewod) Contacting the vendor for clarification2.If a vendor's invoice is higher than the purchase order, what should an accounts payable clerk do?oa) Investigate the discrepancy and discuss it with the vendor before approvalob) Approve the invoice for payment as isoc) Ignore the discrepancy and process the paymentod) Automatically reject the invoice3.What is the purpose of a "three-way match" in the invoice approval process?oa) To ensure the invoice matches the purchase order and receiving report, preventing errors or fraudob) To verify the vendor’s payment historyoc) To calculate early payment discountsod) To track employee reimbursements4.How should an accounts payable department handle an invoice that has missing or incorrect information?oa) Contact the vendor immediately to correct the invoiceob) Pay the invoice without delayoc) Return the invoice to the vendor and inform them of the issueod) Process the payment with the existing information5.If a vendor's invoice contains an error in the pricing, what action should the accounts payable clerk take?oa) Communicate the discrepancy to the vendor and request a corrected invoiceob) Approve the invoice as is to avoid delaysoc) Adjust the pricing and pay the invoiceod) Ignore the discrepancy and process payment based on the invoice6.How can an accounts payable department ensure that all vendor invoices are properly authorized?oa) By requiring approval from relevant department heads before processing paymentsob) By paying invoices immediately upon receiptoc) By ignoring approval steps for expedited paymentsod) By approving invoices automatically without review7.What is the primary reason for rejecting a vendor invoice in the approval process?
oa) If the invoice does not match the purchase order or receiving reportob) If the vendor is late with submissionoc) If the invoice is below a certain thresholdod) If the invoice includes payment discounts8.What should be done if there is a dispute between the vendor and the company regarding an invoice amount?oa) The invoice should be placed on hold until the dispute is resolvedob) The company should pay the full amount without questioning the vendoroc) The company should pay the vendor the agreed amount, even if it’s incorrectod) The vendor should be ignored until the dispute is resolved9.How does an accounts payable clerk handle duplicate invoices from the same vendor?oa) By identifying the duplicate, verifying the correct invoice, and paying only onceob) By paying both invoices to avoid conflictoc) By contacting the vendor and asking them to send a new invoiceod) By ignoring the issue and processing both invoices10.What is the best way to prevent duplicate invoices from being processed?a) By using automated software to match invoice numbers and vendor informationb) By manually reviewing each invoicec) By accepting only physical invoicesd) By approving all invoices without verification11.What should an accounts payable clerk do when an invoice is received with an ambiguous description of services or goods?a) Contact the vendor for clarification before processing paymentb) Approve the invoice without questioning itc) Reject the invoice outrightd) Pay the invoice with an assumption of accuracy12.How does an accounts payable department handle invoices for partially delivered goods or services?a) Pay only for the goods or services that were delivered, and request an updated invoice for the balanceb) Pay the full invoice amount regardless of deliveryc) Reject the invoice completelyd) Pay for the goods and services as delivered but at a discounted rate13.What should an accounts payable clerk do when there is an invoice discrepancy related to tax charges?a) Verify the tax charges with the applicable regulations and contact the vendor for clarification if necessary
b) Approve the invoice and adjust the tax amountc) Pay the full amount without checking the tax chargesd) Reject the invoice completely14.How can discrepancies in pricing between the purchase order and the vendor’s invoice be avoided in the future?a) By ensuring that purchase orders are detailed and accurate, and vendors are clearly informed of agreed pricesb) By paying invoices without matching them to purchase ordersc) By only placing orders with vendors who offer blanket pricingd) By approving invoices based on vendor trust15.What is the importance of having an audit trail for each invoice approval process?a) It ensures transparency, accountability, and helps in detecting discrepancies or fraudb) It is only useful for internal purposesc) It is irrelevant if all invoices are accurated) It is required only for large transactions