CRPA Customer Billing & Invoice Management 2

Question 1

Which billing cycle practice most directly reduces Days Sales Outstanding (DSO)?

Accepted Answer

Invoicing customers immediately upon goods delivery or service completion

Answer

Sending invoices at the end of the month regardless of delivery date

Answer

Batching all invoices quarterly

Answer

Waiting for customer purchase order confirmation before invoicing

Question 2

What is a 'disputed invoice hold' and when should it be applied?

Accepted Answer

A temporary suspension of collection activity on a specific invoice while a dispute is being investigated

Answer

A hold placed on all invoices during month-end close

Answer

An automatic deduction applied when an invoice exceeds the customer's credit limit

Answer

A penalty fee added to invoices that customers dispute without cause

Question 3

Under US GAAP, revenue on an invoice may only be recognized when:

Accepted Answer

The performance obligation has been satisfied per ASC 606

Answer

The invoice is sent to the customer

Answer

The cash is received from the customer

Answer

The invoice is approved internally

Question 4

Which metric measures the effectiveness of a company's billing and collections process?

Accepted Answer

Days Sales Outstanding (DSO)

Answer

Gross Profit Margin

Answer

Return on Equity (ROE)

Answer

Inventory Turnover Ratio

Question 5

A customer consistently deducts unauthorized amounts from invoice payments. The BEST long-term resolution is to:

Accepted Answer

Conduct a root-cause analysis and negotiate formal deduction policies with the customer

Answer

Write off the deductions permanently

Answer

Issue a credit memo for each deduction without investigation

Answer

Immediately place the customer on credit hold

Question 6

What is the purpose of a billing audit in accounts receivable management?

Accepted Answer

To verify the accuracy and completeness of invoices issued against contracts and delivery records

Answer

To generate new invoices for unpaid accounts

Answer

To calculate employee bonuses in the billing department

Answer

To remove duplicate customers from the AR system

Question 7

Which of the following is a key benefit of implementing a customer self-service billing portal?

Accepted Answer

It reduces inbound billing inquiries and accelerates dispute resolution by giving customers direct invoice access

Answer

It eliminates the need for payment terms

Answer

It automatically transfers overdue accounts to collections

Answer

It increases the number of invoices generated per month