Authentic IOFM Certification Exam APS Questions Answers

Cash management refers to an organization’s processes for managing the inflow and outflow of funds to optimize liquidity, ensure financial stability, and meet operational needs. This includes overseeing cash receipts, payments, and forecasting cash flow. While payment terms (Option A) and payroll disbursements (Option B) are components of cash management, they are not the comprehensive definition. Enterprise resource planning systems (Option C) are tools that may support cash management but are not the definition itself.

The web source from Corcentric states: “Cash management involves managing an organization’s inflow and outflow of funds to maintain liquidity and meet financial obligations.” This directly supports Option D.

The IOFM APS Certification Program covers “Payments,” including cash management principles as they relate to AP processes. The curriculum’s focus on “peer-tested best practices” aligns with the definition of cash management as managing cash inflows and outflows.

The current thinking on automation of Travel and Entertainment (T&E) expense handling, reporting, and reimbursement is that itreduces processing costs, thereby increasing efficiency in handling T&E data. Automation streamlines tasks like receipt capture, expense report submission,approval workflows, and reimbursement, reducing manual effort and errors while improving compliance and visibility.

The web source from SAP Concur states: “T&E automation significantly reduces processing costs by streamlining expense reporting, improving accuracy, and increasing efficiency in handling T&E data.” This directly supports Option D. The other options are incorrect:

Option A: Automation minimizes, not perpetuates, manual work in modern T&E systems.

Option B: Automation strengthens controls, reducing loopholes through features like policy checks.

Option C: T&E automation is well-established, not too new to evaluate.

The IOFM APS Certification Program covers “Travel and Entertainment (T&E),” emphasizing the benefits of automation in expense management. The curriculum’s focus on “peer-tested best practices” aligns with the efficiency and cost-saving benefits of T&E automation.

ThePaymentstopic in the APS Certification Program includes understanding the types of accounts involved in AP transactions, such as assets, liabilities, and expenses. Fixed assets are long-term, tangible assets used in business operations, such as furniture and fixtures, which are not intended for sale. Accounts receivable and inventory, however, are not fixed assets; they are current assets, as they are expected to be converted to cash within a year.

Item I (Accounts receivable): Accounts receivable represent money owed to the organization by customers for goods or services sold. They are classified ascurrent assets, not fixed assets, because they are short-term and liquid. This item is not a fixed asset.

Item II (Furniture and fixtures): Furniture and fixtures (e.g., desks, chairs, office equipment) are tangible, long-term assets used in business operations. They are classified asfixed assetsbecause they have a useful life exceeding one year and are not intended for sale. This item is a fixed asset.

Item III (Inventory): Inventory consists of goods held for sale or use in production. It is classified as acurrent assetbecause it is expected to be sold or used within a year. This item is not a fixed asset.

Option A (I, II, and III): Incorrect, as only II is a fixed asset; I and III are current assets.

Option B (I and II only): Incorrect, as I (accounts receivable) is not a fixed asset.

Option C (II only): Correct, as furniture and fixtures (II) are the only fixed asset among the options.

Option D (I and III only): Incorrect, as neither I (accounts receivable) nor III (inventory) are fixed assets.

Reference to IOFM APS Documents: The APS e-textbook underPaymentscovers basic accounting principles, including the classification of assets. It defines fixed assets as “tangible assets with a useful life of more than one year, such as furniture, fixtures, and equipment, used in business operations.” The text distinguishes fixed assets from current assets like accounts receivable and inventory, which are “expected to be converted to cash or used within a year.” The training video reinforces this by discussing how AP processes payments for fixed assets (e.g., capital expenditures) versus current assets (e.g., inventory purchases).