NPMA CPPS PRACTICE TEST
QUESTIONS AND ANSWERS WITH
CORRECT SOLUTIONS UPDATED
2025/2025 GRADED A+
What is the first step of the approval process when making a purchase? - CORRECT
ANSWES -- Obtaining approval to spend budgeted organizational funds
3. When a decision has been made to buy new equipment, considerations should be
decided, such as: immediate availability, extended service warranties, and _________. -
CORRECT ANSWES -- Advanced technology
When a Purchase Order has been completed, Purchasing should provide a copy of the
Purchase Order to property management, the originator, accounts payable, and what
other department? - CORRECT ANSWES -- Receiving
What establishes delegation of authority for signature approval thresholds and types of
property for those signature levels? - CORRECT ANSWES -- Organization procedure
In organizations having online financial systems, documentation is created electronically
and is retained in the system's transaction history. It is often used as part of a three-way
match of transactions prior to payment: the PO, the receiving documentation, and the
___________. - CORRECT ANSWES -- Invoice
A ________________________ provides receiving activity information as well as a way
to trace items that are lost or misappropriated during the receiving process or during
delivery from the receiving area. - CORRECT ANSWES -- Receiving voucher log
What is a disadvantage of centralized receiving? - CORRECT ANSWES -- Slower turn-
around time for deliveries
What information is NOT typically recorded in a receiving voucher log? - CORRECT
ANSWES -- Purchasing department order date and cost
Why is it important that the Receiving department inspect for damage? - CORRECT
ANSWES -- Provide information for a potential return of the item to the vendor
, What is the document most organizations use that describes and conveys the process
steps taken to produce a desired result? - CORRECT ANSWES -- Procedure
Which of the following terms means "to possess and have use of property of another
with delegated responsibilities"? - CORRECT ANSWES -- Accountability
What element is crucial to the entire process of the property control system? -
CORRECT ANSWES -- Records
When does the Acquisition begin? - CORRECT ANSWES -- Needs have been defined
What is one accomplishment by tagging of new, incoming property? - CORRECT
ANSWES -- Establishes the official record for that item
Types of property that generally require serialized tags are: - CORRECT ANSWES --
Government property sensitive property
Reasons accountable property is tagged because of its sensitivity, requirement for
control and what? - CORRECT ANSWES -- Dollar value
What does the accuracy of bar-code technology depend on? - CORRECT ANSWES --
The accuracy of the data capturing process
Assets acquired by the subcontractor must be tagged in accordance with the
_____________ policies and procedures unless otherwise specified in the subcontract
award document. - CORRECT ANSWES -- Prime contractor's
What is the method of inventory and distribution that moves the oldest items in storage
to the location where they will be used first (i.e. there is concern that the items may
have a limited shelf-life)? - CORRECT ANSWES -- FIFO
Warehouse operations include several integrated functions, including: - CORRECT
ANSWES -- Space allocation
What does using proper temperature and humidity controls in a warehouse environment
help ensure? - CORRECT ANSWES -- Does not deteriorate when being stored
Just-in-time (JIT) delivery has both advantages and disadvantages. What is one
DISADVANTAGE? - CORRECT ANSWES -- Increases the costs of purchased goods
Which of these is NOT a factor that should be considered when deciding on the
appropriate layout of a warehouse? - CORRECT ANSWES -- Acquisition method
of items
QUESTIONS AND ANSWERS WITH
CORRECT SOLUTIONS UPDATED
2025/2025 GRADED A+
What is the first step of the approval process when making a purchase? - CORRECT
ANSWES -- Obtaining approval to spend budgeted organizational funds
3. When a decision has been made to buy new equipment, considerations should be
decided, such as: immediate availability, extended service warranties, and _________. -
CORRECT ANSWES -- Advanced technology
When a Purchase Order has been completed, Purchasing should provide a copy of the
Purchase Order to property management, the originator, accounts payable, and what
other department? - CORRECT ANSWES -- Receiving
What establishes delegation of authority for signature approval thresholds and types of
property for those signature levels? - CORRECT ANSWES -- Organization procedure
In organizations having online financial systems, documentation is created electronically
and is retained in the system's transaction history. It is often used as part of a three-way
match of transactions prior to payment: the PO, the receiving documentation, and the
___________. - CORRECT ANSWES -- Invoice
A ________________________ provides receiving activity information as well as a way
to trace items that are lost or misappropriated during the receiving process or during
delivery from the receiving area. - CORRECT ANSWES -- Receiving voucher log
What is a disadvantage of centralized receiving? - CORRECT ANSWES -- Slower turn-
around time for deliveries
What information is NOT typically recorded in a receiving voucher log? - CORRECT
ANSWES -- Purchasing department order date and cost
Why is it important that the Receiving department inspect for damage? - CORRECT
ANSWES -- Provide information for a potential return of the item to the vendor
, What is the document most organizations use that describes and conveys the process
steps taken to produce a desired result? - CORRECT ANSWES -- Procedure
Which of the following terms means "to possess and have use of property of another
with delegated responsibilities"? - CORRECT ANSWES -- Accountability
What element is crucial to the entire process of the property control system? -
CORRECT ANSWES -- Records
When does the Acquisition begin? - CORRECT ANSWES -- Needs have been defined
What is one accomplishment by tagging of new, incoming property? - CORRECT
ANSWES -- Establishes the official record for that item
Types of property that generally require serialized tags are: - CORRECT ANSWES --
Government property sensitive property
Reasons accountable property is tagged because of its sensitivity, requirement for
control and what? - CORRECT ANSWES -- Dollar value
What does the accuracy of bar-code technology depend on? - CORRECT ANSWES --
The accuracy of the data capturing process
Assets acquired by the subcontractor must be tagged in accordance with the
_____________ policies and procedures unless otherwise specified in the subcontract
award document. - CORRECT ANSWES -- Prime contractor's
What is the method of inventory and distribution that moves the oldest items in storage
to the location where they will be used first (i.e. there is concern that the items may
have a limited shelf-life)? - CORRECT ANSWES -- FIFO
Warehouse operations include several integrated functions, including: - CORRECT
ANSWES -- Space allocation
What does using proper temperature and humidity controls in a warehouse environment
help ensure? - CORRECT ANSWES -- Does not deteriorate when being stored
Just-in-time (JIT) delivery has both advantages and disadvantages. What is one
DISADVANTAGE? - CORRECT ANSWES -- Increases the costs of purchased goods
Which of these is NOT a factor that should be considered when deciding on the
appropriate layout of a warehouse? - CORRECT ANSWES -- Acquisition method
of items
