Accounts Payable Certification Practice Test

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Prepare for the Accounts Payable Certification Test with our collection of comprehensive flashcards and multiple-choice questions. Each question offers detailed hints and explanations to boost your learning. Get ready for success!

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If you apply credits up to a zero amount for an invoice and a credit memo, what are the potential outcomes?

Only the invoice is paid fully; the credit memo has a credit of $100 remaining.
Both the invoice and the credit memo are fully paid.
Neither the invoice nor the credit memo is included in the payment process request.
Both the invoice and the credit memo are included in the payment process request.

The correct answer is: Only the invoice is paid fully; the credit memo has a credit of $100 remaining.

When applying credits to an invoice and a credit memo, the goal is to offset the amounts payable. If you apply credits up to a zero balance for both the invoice and the credit memo, this means that the invoice has been fully applied and settled using the available credits. In this scenario, if there is still a remaining balance on the credit memo, it indicates that the invoice was effectively settled but a portion of the credit memo has not been utilized. This is a common occurrence where the total credit memo amount exceeds the amount of the invoice, leading to a situation where the invoice reaches zero, but the credit memo retains some credit balance. Thus, the outcome suggests that while the invoice is paid in full, the credit memo remains available for future use or application to another invoice or other financial processes, which aligns with the option that states the invoice is paid fully and the credit memo has a remaining credit.