Accounts Payable Certification Practice Test

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If a company runs the payables unaccounted transactions sweep program for February 2016, what happens to invoices with a hold status dated January 20, 2016?

The accounting dates will change to February 28, 2016
The accounting dates will remain January 20, 2016
The accounting dates will change to February 1, 2016
The accounting dates will change to February 20, 2016

The correct answer is: The accounting dates will change to February 1, 2016

When a company runs the payables unaccounted transactions sweep program, the system is designed to handle invoices that are on hold, typically to ensure that all transactions are correctly accounted for within a specific accounting period. In this scenario, invoices with a hold status dated January 20, 2016, will have their accounting dates adjusted. The correct adjustment is to change these dates to February 1, 2016. This action aligns the invoices with the upcoming accounting period, allowing them to be processed and recognized in the month of February instead of remaining in January, where they were originally dated. This process helps facilitate the timely recognition of expenses and ensures the company's financial records accurately reflect its liabilities for proper financial reporting. The adjustment to hold invoices to the beginning of the new accounting period allows the organization to keep its accounts payable in order and manage cash flow effectively, ensuring all expenses are accounted for during the correct reporting period.