Question 1

Record expenses when it occurs and when the cash is paid.

Accepted Answer

False

Answer

True

Question 2

Accrual is required to ensure that the books of account reflect the Value of Work Done (VOWD) at the end of each accounting month.

Accepted Answer

True

Answer

False

Question 3

What to accrue?

Accepted Answer

Both answers are correct.

Answer

Accrue jobs completed in prior months and current month if Invoices not yet paid.

Answer

Accrue jobs that will be completed between Accrual deadline to End Financial Period.

Question 4

How to accrue Work-in-Progress jobs?

Accepted Answer

Accrue percentage of completed jobs up to current month end.

Answer

Accrue full amount of the Purchase Order value.

Answer

Accrue the amount as per Work, Plan & Budget (WPB)

Question 5

Can I accrue the jobs that are not yet executed but budgeted in the current month?

Accepted Answer

No

Answer

Yes

Question 6

What are the documents required to support my basis of accrual?

Accepted Answer

Vendor’s confirmation.

Answer

Work, Plan & Budget (WPB) Report.

Answer

Both answers are correct.

Question 7

What is the impact of over-accrual?

Accepted Answer

Will reduce current year expenditure and it seems like you have done less activities than plan in the current year.

Answer

Need to request ABR.

Answer

Will increase current year expenditure and it seems like you overspend your budget.

Question 8

What is the impact of under-accrual?

Accepted Answer

Will increase current year expenditure and it seems like you overspend your budget.

Answer

Both answers are correct.

Answer

Will reduce current year expenditure and it seems like you have done less activities then plan in the current year.

Question 9

Who is responsible to expedite invoice submission?

Accepted Answer

User

Answer

Cost Controller

Answer

Account Payable

Question 10

Who is accountable for the accrual numbers?

Accepted Answer

User

Answer

Cost Controller

Answer

Finance Controller

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