Accounts Payable Certification Practice Test

What should you do when a taxi expense has a different conversion rate applied than the one used by your company?

1. Skip entering the expense and contact the Finance Department for adjustments.

2. Overwrite the conversion rate with the Visa rate used for the expense.

3. Use the corporate conversion rate regardless of reimbursement issues.

4. Contact Visa to dispute the conversion rate adjustment.

The correct answer is: Skip entering the expense and contact the Finance Department for adjustments.

When facing a situation where a taxi expense has a different conversion rate than what your company typically uses, the most prudent action is to skip entering the expense and contact the Finance Department for further guidance. This approach ensures that discrepancies in conversion rates are addressed by those responsible for financial oversight within the company. By involving the Finance Department, you help maintain accurate financial records and compliance with company policies. They can provide clarity on how to handle the variation in conversion rates and whether adjustments should be made to conform to corporate standards. This step also helps in identifying any possible errors or adjustments in the conversion process that should not be overlooked. In contrast, adjusting the conversion rate manually or using the corporate rate could lead to inconsistencies in financial reporting, inaccuracies in reimbursement, or other compliance issues. Disputing the rate with Visa is typically not a practical solution for internal accounting processes and might not resolve the issue as it relates specifically to corporate policy.