The ability to interpret supplier invoices and payments is crucial in business environments. This TOEIC Reading practice test focuses on this essential skill, helping you improve your understanding of understanding payment terms in business invoices and related vocabulary. Let’s dive into the practice questions to enhance your TOEIC Reading proficiency.
Part 1: Incomplete Sentences
In this section, you’ll find 30 incomplete sentences. Choose the word or phrase that best completes each sentence.
-
The supplier’s invoice clearly states the payment _____ as net 30 days.
A) terms
B) conditions
C) rules
D) regulations -
To avoid late fees, we must _____ the invoice within the specified timeframe.
A) settle
B) arrange
C) organize
D) manage -
The accounts payable department is responsible for _____ all incoming invoices.
A) processing
B) proceeding
C) progressing
D) producing -
Please _____ the invoice number when making your payment.
A) reference
B) refer
C) relate
D) respond -
The company’s policy is to _____ all invoices for accuracy before payment.
A) verify
B) clarify
C) modify
D) simplify -
We offer a 2% discount for payments made within 10 days of the invoice _____.
A) date
B) time
C) period
D) duration -
The total amount _____ on the invoice includes all applicable taxes and fees.
A) due
B) owed
C) payable
D) chargeable -
Our accounting software automatically _____ incoming invoices with purchase orders.
A) matches
B) pairs
C) combines
D) attaches -
The supplier has agreed to _____ the payment terms to accommodate our cash flow.
A) extend
B) expand
C) enlarge
D) enhance -
Please ensure that all invoices are _____ to the correct department for prompt processing.
A) directed
B) guided
C) led
D) steered -
The company’s _____ cycle for supplier payments is typically 45 days.
A) cash
B) money
C) currency
D) finance -
We need to _____ any discrepancies in the invoice immediately with the supplier.
A) address
B) speak
C) talk
D) discuss -
The finance team conducts regular _____ of supplier invoices to ensure compliance with company policies.
A) audits
B) reviews
C) inspections
D) examinations -
Our new automated system has significantly _____ the time required to process invoices.
A) reduced
B) decreased
C) lowered
D) diminished -
The supplier’s credit terms allow us to _____ payment for up to 60 days without penalties.
A) defer
B) delay
C) postpone
D) suspend -
Please _____ all supporting documentation when submitting an invoice for payment.
A) attach
B) include
C) enclose
D) append -
The accounts team will _____ payment once they have verified the invoice details.
A) initiate
B) begin
C) start
D) commence -
We must _____ the invoice amount with our records before approving payment.
A) reconcile
B) balance
C) equate
D) harmonize -
The supplier offers a _____ discount for bulk orders exceeding $10,000.
A) volume
B) quantity
C) amount
D) size -
Our company prefers to make payments via electronic funds _____ for efficiency.
A) transfer
B) transaction
C) transmission
D) transition -
The invoice should clearly _____ any additional charges or fees.
A) itemize
B) list
C) enumerate
D) catalog -
We need to _____ the payment schedule to align with our monthly budget cycle.
A) adjust
B) alter
C) amend
D) adapt -
The finance department will _____ all overdue invoices at the end of each month.
A) flag
B) mark
C) note
D) highlight -
Our supplier agreement includes a clause for _____ resolution in case of payment disputes.
A) dispute
B) conflict
C) disagreement
D) argument -
The company’s policy requires at least two signatories to _____ large payments to suppliers.
A) authorize
B) permit
C) allow
D) sanction -
We need to _____ our cash reserves to ensure timely payment of all outstanding invoices.
A) manage
B) handle
C) control
D) direct -
The accounts team will _____ a report of all paid invoices at the end of each quarter.
A) generate
B) produce
C) create
D) develop -
Our new procurement system automatically _____ invoices to the appropriate cost centers.
A) allocates
B) assigns
C) distributes
D) divides -
The finance director must _____ any payments exceeding the preset threshold.
A) approve
B) endorse
C) confirm
D) validate -
We need to _____ our payment processes to reduce the risk of errors and fraud.
A) streamline
B) simplify
C) optimize
D) improve
TOEIC Reading Practice: Interpreting Supplier Invoices
Part 2: Text Completion
In this section, you’ll find 4 short passages related to Interpreting Supplier Invoices And Payments. Each passage has 4 blanks. Choose the best word or phrase to fill each blank based on the context.
Passage 1
Efficient invoice processing is crucial for maintaining healthy supplier relationships. When an invoice (1), the accounts payable team should first (2) it against the original purchase order to ensure accuracy. Any discrepancies should be (3) immediately with the supplier to avoid payment delays. Once verified, the invoice should be (4) for payment according to the agreed terms.
-
A) arrives
B) comes
C) reaches
D) appears -
A) compare
B) contrast
C) match
D) align -
A) addressed
B) spoken
C) talked
D) discussed -
A) scheduled
B) arranged
C) organized
D) planned
Passage 2
Understanding payment terms is essential for effective cash flow management. Many suppliers offer (5) for early payment, which can provide significant savings over time. However, companies must (6) these potential savings against the value of retaining cash for longer periods. It’s also important to (7) the consequences of late payments, which may include penalties or damage to supplier relationships. A well-structured (8) system can help balance these factors and optimize payment timing.
-
A) discounts
B) reductions
C) deductions
D) cuts -
A) weigh
B) measure
C) assess
D) evaluate -
A) consider
B) think about
C) reflect on
D) ponder -
A) payment
B) reimbursement
C) compensation
D) remuneration
Passage 3
Automating the invoice processing workflow can significantly improve efficiency and accuracy. Modern software solutions can (9) incoming invoices, extract key data, and (10) them with purchase orders automatically. This automation reduces the risk of human error and frees up staff to focus on more (11) tasks. Additionally, these systems often include features for tracking payment status, generating reports, and (12) compliance with financial regulations.
-
A) scan
B) read
C) analyze
D) examine -
A) match
B) pair
C) connect
D) link -
A) strategic
B) important
C) critical
D) vital -
A) ensuring
B) guaranteeing
C) securing
D) safeguarding
Passage 4
Effective supplier invoice management requires clear communication and well-defined processes. It’s important to (13) all relevant staff on the company’s invoice handling procedures, including approval workflows and payment authorization levels. Regular (14) of these processes can help identify bottlenecks and opportunities for improvement. Companies should also maintain open lines of communication with suppliers, promptly (15) any issues or queries regarding invoices. By fostering a culture of transparency and efficiency in invoice management, businesses can (16) stronger, more productive relationships with their suppliers.
-
A) train
B) educate
C) instruct
D) teach -
A) reviews
B) audits
C) inspections
D) examinations -
A) addressing
B) responding to
C) answering
D) replying to -
A) build
B) develop
C) establish
D) create
Answer Key
Part 1: Incomplete Sentences
- A) terms
- A) settle
- A) processing
- A) reference
- A) verify
- A) date
- A) due
- A) matches
- A) extend
- A) directed
- A) cash
- A) address
- A) audits
- A) reduced
- A) defer
- B) include
- A) initiate
- A) reconcile
- A) volume
- A) transfer
- A) itemize
- A) adjust
- A) flag
- A) dispute
- A) authorize
- A) manage
- A) generate
- A) allocates
- A) approve
- A) streamline
Part 2: Text Completion
Passage 1:
- A) arrives
- C) match
- A) addressed
- A) scheduled
Passage 2:
5. A) discounts
6. A) weigh
7. A) consider
8. A) payment
Passage 3:
9. A) scan
10. A) match
11. A) strategic
12. A) ensuring
Passage 4:
13. A) train
14. A) reviews
15. B) responding to
16. C) establish
By practicing with these TOEIC Reading exercises focused on interpreting supplier invoices and payments, you’ll enhance your business English skills and improve your performance on the TOEIC test. Remember to review the understanding payment terms in business invoices guide for additional insights into this crucial business topic.
