Accounts Payable Certification Practice Test

When processing corporate card expenses, which statements are correct?

1. Conversion rates apply only to credit card expenses.

2. You can process payment for credit card using various methods.

3. Usage policy tolerances do not apply to credit card expenses.

4. Conversion rate defaults are not applicable to credit card expenses.

The correct answer is: Usage policy tolerances do not apply to credit card expenses.

The choice asserting that usage policy tolerances do not apply to credit card expenses is accurate because corporate card usage is generally governed by established policies that outline acceptable expenditures and limits. These policies are designed to ensure that all expenses are appropriate and necessary for business purposes. While credit card expenses involve purchases made directly with the card, they still necessitate adherence to the company's usage policies to control spending and prevent misuse. In many corporations, the policies specify the types of expenditures allowed, the maximum amounts that can be spent on particular categories, and approval processes for unusual or high-value purchases. Thus, even when using a corporate card, employees are expected to understand and follow the same guidelines established for other forms of spending, ensuring that all corporate spending remains compliant and within set parameters.