15 Multiple Choice Questions (MCQs)
1. What is the purpose of receipt matching?
A. To make purchases
B. To check supplier location
C. To verify consistency between invoice, PO, and goods receipt
D. To calculate taxes
Answer: C
2. What documents are involved in a 2-way match?
A. Invoice and delivery note
B. Purchase Order and Invoice
C. Invoice and payment slip
D. Invoice and inspection slip
Answer: B
3. In a 3-way matching process, which document is added to the 2-way matching?
A. Contract
B. Inspection slip
C. Goods receipt
D. Bank statement
Answer: C
4. What is the additional document used in 4-way matching?
A. Return note
B. Inspection slip
C. Receipt note
D. Pricing sheet
Answer: B
5. Which type of PO is best for bulk purchases over time?
A. Standard PO
B. Planned PO
C. Blanket PO
D. Contract PO
Answer: C
6. What is the first step in the purchase order process?
A. Dispatch
B. Order creation
C. Delivery
D. Payment
Answer: B
7. What is required for a formal receipt process?
A. Verbal confirmation
B. Only vendor email
C. Physical receipt entry before voucher creation
D. Use of informal invoice
Answer: C
8. What should be checked during 3-way matching?
A. Invoice, PO, and delivery address
B. Invoice, PO, and goods receipt
C. Invoice, PO, and bank slip
D. PO, supplier address, and receipt
Answer: B
9. Which of the following best defines a receipt note?
A. Customer complaint
B. Delivery schedule
C. Document used to record receipt of goods
D. Document to approve vendor payment
Answer: C
10. What is the function of a purchase requisition?
A. External invoice record
B. Legal binding contract
C. Internal request to purchase goods/services
D. Goods receipt validation
Answer: C
11. Who verifies 3-way match before payment?
A. Sales department
B. Marketing team
C. Accounts Payable team
D. Logistics team
Answer: C
12. In journal entry review, what account is credited after goods receipt?
A. Inventory
B. Cash
C. Receipts Not Vouchered
D. Sales
Answer: C
13. Which document contains vendor price and product details?
A. Sales order
B. Invoice
C. Purchase order
D. Receipt note
Answer: C
14. What happens if inspection slip quantity is more than invoice quantity in 4-way
matching?
A. Payment is processed
B. Match is invalid
C. Refund is requested
D. Nothing changes
Answer: B
15. Which of the following is NOT a purchase order type?
A. Blanket PO
B. Planned PO
C. Instant PO
D. Contract PO
Answer: C
10 Short Writing Questions
1. Describe the difference between 2-way and 3-way matching.
2. What are the main components of a receipt note?
3. Explain the function of a purchase requisition in the procurement process.
4. What are the benefits of using 4-way matching over 3-way matching?
5. How does a formal receiving process differ from an informal one?
6. Identify key information found on a purchase order.
7. Describe how invoice discrepancies can be identified during matching.
8. Why is it important to verify goods receipt quantities?
9. What is the significance of a purchase receiver?
10. Explain the steps involved in applying cash to invoices during receipt processing.
5 True/False Questions
1. A 3-way match includes the purchase order, invoice, and inspection slip.
False
2. A blanket purchase order is used for recurring purchases over time.
True
3. In the formal receipt process, vouchers are created before receipt entry.
False
4. A purchase requisition is sent to external suppliers for bids.
False
5. Receipt matching helps reduce payment errors and fraud
🔢 MULTIPLE CHOICE QUESTIONS (20)
1. Which of the following is the first step in the cash receipts procedure?
A) Apply cash to invoices
B) Forward payments to the cashier
C) Record checks and cash
D) Match to bank receipt
Answer: C
2. What stamp should be applied to every check received?
A) Confidential
B) For Deposit Only
C) Payee Endorsement
D) Internal Use Only
Answer: B
3. What department initially records checks received through the mail?
A) Cashier
B) Accounting
C) Mail room
D) Finance Manager
Answer: C
4. Where are unmatched payments temporarily recorded?
A) Customer Account
B) Petty Cash
C) Suspense Account
D) Accounts Receivable
Answer: C
5. Which of these is NOT a current asset account?
A) Petty Cash
B) Equipment
C) Payroll Checking Account
D) Accounts Receivable
Answer: B
6. Account number range for asset accounts is:
A) 1000–1999
B) 2000–2999
C) 4000–4999
D) 6000–6999
Answer: A
7. Which of these is an income statement account category?
A) Owner’s Equity
B) Inventory
C) Revenue
D) Accounts Payable
Answer: C
8. Which account type increases when a debit is made?
A) Revenue
B) Liabilities
C) Equity
D) Assets
Answer: D
9. What is used to enter and maintain different types of receipts?
A) Cash Ledger Book
B) Manual Receipts Processing
C) Bank Reconciliation Form
D) Financial Policy Manual
Answer: B
10. Which method reconciles cash receipts to bank deposits?
A) Standard Entry
B) Conversion Method
C) Matching System
D) Cashflow Forecasting
Answer: B
11. Which of the following is a part of manual receipts processing?
A) Only electronic receipts are used
B) Receipts must always match invoices
C) Entering unmatched receipts
D) None of the above
Answer: C
12. What is the purpose of a suspense account?
A) Temporary holding for unidentified receipts
B) Long-term liability tracking
C) Profit-sharing reserve
D) Inventory adjustments
Answer: A
13. Which of the following is a non-operating income?
A) Sales Revenue
B) Rental Income
C) Cost of Sales
D) Advertising Expense
Answer: B
14. Which document is compared with the vendor invoice during invoice matching?
A) Delivery note
B) Purchase order
C) Payment voucher
D) Receipt slip
Answer: B
15. Which is NOT a typical bank error?
A) Unprocessed check
B) Overdraft
C) Mistyped deposit amount
D) Issuing dividends
Answer: D
16. What is the final step of the reconciliation process?
A) Compare receipts
B) Watch for bank errors
C) Balance both records
D) Void NSF receipts
Answer: C
17. Which account would 'Raw Materials Inventory' fall under?
A) Expense
B) Revenue
C) Asset
D) Liability
Answer: C
18. Which of the following is used for quick entry of unmatched or unappealed
receipts?
A) Journal Entry Tool
B) Standard Receipts Entry
C) Speed Receipts Entry
D) Deposit Form
Answer: C
19. Which chart of account category includes 7000–7999 codes?
A) Revenue
B) Other Revenues (e.g., Interest Income)
C) Cost of Sales
D) Equity
Answer: B
20. In double-entry accounting, when a sale is made, what is debited?
A) Cash or Accounts Receivable
B) Sales Revenue
C) Inventory
D) Notes Payable
Answer: A
✍️SHORT NOTE QUESTIONS (10)
1. Explain the purpose of the “mail room check receipts list”.
2. Describe the process of applying cash to invoices.
3. Define a suspense account and explain when it is used.
4. Outline the steps involved in bank reconciliation.
5. What is the significance of stamping checks with “For Deposit Only”?
6. List and describe three current asset accounts in the chart of accounts.
7. Differentiate between standard and speed receipts entry.
8. What is invoice matching and why is it important?
9. Describe the analytic review method in reconciliation.
10. What types of transactions might appear in a bank statement but not in internal
records?
✅ TRUE OR FALSE QUESTIONS (5)
1. Unmatched receipts should always be ignored until further notice.
False
2. The chart of accounts is used to classify and summarize financial transactions.
True
3. In double-entry accounting, every transaction is recorded only once.
False
4. Discrepancies during reconciliation may be due to outstanding checks.
True
5. Accounts payable is more liquid than notes payable.
True
6. ✅ Multiple Choice Questions (MCQs)
7. 1. What is the primary purpose of a filing system?
A. To store expired documents
B. To make documents hard to access
C. To organize and protect documents for easy access
D. To create new documents
8. Answer: C. To organize and protect documents for easy access
9.
10. 2. What is the first step in establishing effective files documentation?
A. Printing all documents
B. Developing a filing cabinet system
C. Determining important records and responsibilities
D. Scanning documents to PDF
11. Answer: C. Determining important records and responsibilities
12.
13. 3. Which of the following is NOT a benefit of a good filing system?
A. Quick access
B. Transparency
C. Document loss
D. Efficiency
14. Answer: C. Document loss
15.
16. 4. What format is NOT considered a typical medium for storing documents?
A. Microfilm
B. Electronic
C. Verbal
D. Paper
17. Answer: C. Verbal
18.
19. 5. What kind of information should be collected for 'records or potential records'?
A. Only title and owner
B. Only volume
C. Full metadata including title, dates, location, and description
D. Just the room number
20. Answer: C. Full metadata including title, dates, location, and description
21.
22.✅ True or False Questions
23. 1. Filing only what is needed and doing so consistently is a key to effective filing
practices.
24. True
25.
26. 2. A document stored on a desk without categorization is still considered part of an
effective filing system.
27. False
28.
29. 3. Paper-based documentation is becoming less common due to digital alternatives.
30. True
