NAPCP - CPCP CERTIFICATION PRACTICE EXAM WITH
COMPLETE QUESTIONS AND ANSWERS
End-users are - ANSWER-the companies, government agencies,
universities/colleges, etc that provide P-Cards to their
employees.
P-Card program managers(PM), program administrator(PA),
and/or site coordinator (SC) are - ANSWER-the primary roles
that manage a P-Card program within an end-users
organization.
Cardholders are - ANSWER-those who initiate P-Card
transactions on behalf of their employer, the end-user
organization.
Suppliers are - ANSWER-those who accept P-Cards as payment
for goods and services.
Issuers are - ANSWER-those who work directly with end-users
to implement and grow programs, issue cards, and invoice
posted P-Card transactions.
,True or False:
The issuer uses the services of the networks and processors to
faciliate card issuance, authorize transactions, and provide
date. Many financial institutions are not issuers. Issuers are
sometimes called card "providers" - ANSWER-False: Many
financial institutions are issuers. USBANK and JP Morgan Chase
are examples.
Merchant acquirers are - ANSWER-those who enroll suppliers in
the card acceptance process and implement equipment and
software solutions related to this purpose. They facilitate
payment flow including payment to suppliers.
What is also known as a supplier's bank? - ANSWER-Merchant
acquirers
What is also known as card providers? - ANSWER-Issuers
What is a purchasing card? - ANSWER-It is a type of commercial
credit card used by organizations for the payment of goods and
services.
Why were P-Cards created? - ANSWER-A financial re-
engineering tool to streamline accounts payable processes,
,typically replacing paper checks as the payment method for
low-value transactions.
Which is not a benefit of using the P-Card?
a. procure in a timely manner
b. take advantage of supplier discounts
c. convenience fee
d. reduce transaction costs
e. track expenses - ANSWER-c. convenience fee
Networks are - ANSWER-used to facilitate the movement of
transactional data between the issuer and the merchant
acquirer and set the rules pertaining to suppliers' card
acceptance.
What organizations would be considered a network? - ANSWER-
Visa, MasterCard, and American Express
What are also known as associations? - ANSWER-Networks
Processors are - ANSWER-those who provide various services to
card issuers and merchants acquirers, which may include card
production, statement printing, authorization and data
delivery.
, What is Procure-to-Pay Process?
a. Pay for what you buy online or in-person; obtain a receipt
b. Suppliers fulfill cardholder orders, charge a card when
shipped, receive packing list with product; no invoice received
c. Suppliers fulfill cardholder order, charge card, ships product;
invoice received
d. Suppliers send invoice, charge card, fulfill order, ship
product; packing list received - ANSWER-b. Suppliers fulfill
cardholder orders, charge a card when shipped, receive packing
list with product; no invoice received
Benefit for using the Procure-to-Pay process:
a. supplier receive payment within 2-3 days versus 30+ days
b. receive a payment voucher guaranteeing payment
c. cardholders have their product before they have to pay
d. The process eliminates all paperwork - ANSWER-a. supplier
receive payment within 2-3 days versus 30+ days
Who provides an invoice (central bill) to the end-user
organization reflecting the total of each P0Card account plus a
grand total of what is owed for the cycle?
a. Suppliers
b. Processors
COMPLETE QUESTIONS AND ANSWERS
End-users are - ANSWER-the companies, government agencies,
universities/colleges, etc that provide P-Cards to their
employees.
P-Card program managers(PM), program administrator(PA),
and/or site coordinator (SC) are - ANSWER-the primary roles
that manage a P-Card program within an end-users
organization.
Cardholders are - ANSWER-those who initiate P-Card
transactions on behalf of their employer, the end-user
organization.
Suppliers are - ANSWER-those who accept P-Cards as payment
for goods and services.
Issuers are - ANSWER-those who work directly with end-users
to implement and grow programs, issue cards, and invoice
posted P-Card transactions.
,True or False:
The issuer uses the services of the networks and processors to
faciliate card issuance, authorize transactions, and provide
date. Many financial institutions are not issuers. Issuers are
sometimes called card "providers" - ANSWER-False: Many
financial institutions are issuers. USBANK and JP Morgan Chase
are examples.
Merchant acquirers are - ANSWER-those who enroll suppliers in
the card acceptance process and implement equipment and
software solutions related to this purpose. They facilitate
payment flow including payment to suppliers.
What is also known as a supplier's bank? - ANSWER-Merchant
acquirers
What is also known as card providers? - ANSWER-Issuers
What is a purchasing card? - ANSWER-It is a type of commercial
credit card used by organizations for the payment of goods and
services.
Why were P-Cards created? - ANSWER-A financial re-
engineering tool to streamline accounts payable processes,
,typically replacing paper checks as the payment method for
low-value transactions.
Which is not a benefit of using the P-Card?
a. procure in a timely manner
b. take advantage of supplier discounts
c. convenience fee
d. reduce transaction costs
e. track expenses - ANSWER-c. convenience fee
Networks are - ANSWER-used to facilitate the movement of
transactional data between the issuer and the merchant
acquirer and set the rules pertaining to suppliers' card
acceptance.
What organizations would be considered a network? - ANSWER-
Visa, MasterCard, and American Express
What are also known as associations? - ANSWER-Networks
Processors are - ANSWER-those who provide various services to
card issuers and merchants acquirers, which may include card
production, statement printing, authorization and data
delivery.
, What is Procure-to-Pay Process?
a. Pay for what you buy online or in-person; obtain a receipt
b. Suppliers fulfill cardholder orders, charge a card when
shipped, receive packing list with product; no invoice received
c. Suppliers fulfill cardholder order, charge card, ships product;
invoice received
d. Suppliers send invoice, charge card, fulfill order, ship
product; packing list received - ANSWER-b. Suppliers fulfill
cardholder orders, charge a card when shipped, receive packing
list with product; no invoice received
Benefit for using the Procure-to-Pay process:
a. supplier receive payment within 2-3 days versus 30+ days
b. receive a payment voucher guaranteeing payment
c. cardholders have their product before they have to pay
d. The process eliminates all paperwork - ANSWER-a. supplier
receive payment within 2-3 days versus 30+ days
Who provides an invoice (central bill) to the end-user
organization reflecting the total of each P0Card account plus a
grand total of what is owed for the cycle?
a. Suppliers
b. Processors
