IOFM AP Specialist UPDATED ACTUAL QUESTIONS AND
CORRECT Answers
Mission Statement a statement of the organization's direction - what it wants to accomplish, overall
goal
Advantage of Centralization One location for lower cost, greater control, lack or redundancy
Decentralization Ease cost allocation, local relationships, can be expensive, lack economy scale
Shared services Combine departments, lower costs,combine non-core functions
Greenfield New location
Brownfield Existing location
Outsourcing obtain (goods or a service) from an outside or foreign supplier, especially in place
of an internal source.
accrued expenses expenses incurred but not yet paid in cash or recorded
current assets items that can or will be converted into cash. Belongs to company
Balance Sheet a statement of the assets, liabilities, and capital of a business or other organization
at a particular point in time, detailing the balance of income and expenditure over
the preceding period.
cash flow Measure of company's financial position over a certain period
DPO Days Payable Outstanding
Escheatment turn over abandoned property to the state
GAAP Generally Accepted Accounting Principles
IFRS (International Financial Reporting Standards) A set of international guidelines and procedures governing accounting practices
Balance Sheet a statement of the assets, liabilities, and capital of an organization at a particular
point in time, detailing the balance of income and expenditure over the preceding
period.
, KPI (Key Performance Indicator) Performance measure for one specific goal
Positive Pay A fraud prevention cash management program offered by banks in an attempt to
protect customers and the bank
Internal Controls the processes and procedures implemented to provide reasonable assurance that
control objectives are met
Process Control type Preventative or Detective
Preventative control a control that deters undesirable events from occurring
CORRECT Answers
Mission Statement a statement of the organization's direction - what it wants to accomplish, overall
goal
Advantage of Centralization One location for lower cost, greater control, lack or redundancy
Decentralization Ease cost allocation, local relationships, can be expensive, lack economy scale
Shared services Combine departments, lower costs,combine non-core functions
Greenfield New location
Brownfield Existing location
Outsourcing obtain (goods or a service) from an outside or foreign supplier, especially in place
of an internal source.
accrued expenses expenses incurred but not yet paid in cash or recorded
current assets items that can or will be converted into cash. Belongs to company
Balance Sheet a statement of the assets, liabilities, and capital of a business or other organization
at a particular point in time, detailing the balance of income and expenditure over
the preceding period.
cash flow Measure of company's financial position over a certain period
DPO Days Payable Outstanding
Escheatment turn over abandoned property to the state
GAAP Generally Accepted Accounting Principles
IFRS (International Financial Reporting Standards) A set of international guidelines and procedures governing accounting practices
Balance Sheet a statement of the assets, liabilities, and capital of an organization at a particular
point in time, detailing the balance of income and expenditure over the preceding
period.
, KPI (Key Performance Indicator) Performance measure for one specific goal
Positive Pay A fraud prevention cash management program offered by banks in an attempt to
protect customers and the bank
Internal Controls the processes and procedures implemented to provide reasonable assurance that
control objectives are met
Process Control type Preventative or Detective
Preventative control a control that deters undesirable events from occurring
