CRPA Customer Billing & Invoice Management

Question 1

Which billing method sends invoices automatically based on predefined contract milestones or time intervals?

Accepted Answer

Recurring/automated billing

Answer

Manual billing

Answer

Progress billing

Answer

Retainer billing

Question 2

What is the primary purpose of a credit memo in accounts receivable?

Accepted Answer

To reduce the amount owed by a customer due to returns or adjustments

Answer

To record a new sale to a customer

Answer

To request payment from a customer past due

Answer

To document a customer's credit limit increase

Question 3

Which invoice element is most critical for ensuring timely payment according to AR best practices?

Accepted Answer

Clear payment terms and due date

Answer

Company logo placement

Answer

Invoice color scheme

Answer

Font size of line items

Question 4

A customer claims an invoice contains a pricing discrepancy. What is the FIRST step an AR professional should take?

Accepted Answer

Validate the invoice against the original sales order or contract

Answer

Immediately issue a credit memo

Answer

Write off the disputed amount

Answer

Escalate to the legal department

Question 5

Which of the following best describes 'invoice aging' in the context of billing management?

Accepted Answer

A report categorizing outstanding invoices by the length of time they have been unpaid

Answer

The process of archiving old invoices

Answer

The automatic cancellation of invoices over 90 days old

Answer

A method for adjusting invoice amounts over time for inflation

Question 6

Electronic invoicing (e-invoicing) improves billing efficiency primarily by:

Accepted Answer

Reducing manual data entry, postage costs, and delivery time

Answer

Eliminating the need for payment terms

Answer

Allowing customers to avoid paying sales tax

Answer

Replacing the accounts receivable department

Question 7

What does a 'dunning' process refer to in accounts receivable?

Accepted Answer

A systematic series of communications sent to customers with overdue invoices

Answer

The process of setting customer credit limits

Answer

The reconciliation of billing records with bank statements

Answer

A method for generating invoices in bulk