CRPA Customer Billing & Invoice Management 3

Question 1

Which invoice data element is required by the IRS for proper documentation of a B2B transaction?

Accepted Answer

Seller's EIN and itemized description of goods or services with amounts

Answer

Customer's personal social security number

Answer

Customer's date of birth

Answer

Seller's personal home address

Question 2

When a company switches from paper to electronic invoicing, which internal control is MOST important to establish first?

Accepted Answer

Authentication and access controls to prevent unauthorized invoice creation or modification

Answer

A new color scheme for digital invoices

Answer

A policy banning customers from printing e-invoices

Answer

Automatic invoice deletion after 30 days

Question 3

A billing error results in an overcharge to a large customer. The AR professional's BEST course of action is to:

Accepted Answer

Proactively notify the customer, issue a corrected invoice, and document the adjustment

Answer

Wait for the customer to identify the error

Answer

Ignore the error if the amount is under $500

Answer

Apply the overcharge to a future invoice as a credit

Question 4

What does 'Net 30' on an invoice mean?

Accepted Answer

Payment is due within 30 days of the invoice date

Answer

The invoice is 30 days old

Answer

A 30% discount is applied to the total

Answer

The customer has 30 days to dispute the invoice

Question 5

Which of the following best describes 'consolidated billing'?

Accepted Answer

Issuing a single invoice that summarizes all transactions for a customer over a defined period

Answer

Combining multiple overdue invoices into a single collection letter

Answer

Splitting one large invoice into multiple smaller invoices

Answer

Billing two customers jointly for shared services

Question 6

Which KPI directly measures how accurately invoices are generated on the first attempt without requiring corrections?

Accepted Answer

First-Pass Invoice Accuracy Rate

Answer

DSO (Days Sales Outstanding)

Answer

Collection Effectiveness Index (CEI)

Answer

Bad Debt Ratio

Question 7

In accounts receivable, what is the primary risk of allowing excessive billing disputes to remain unresolved?

Accepted Answer

Delayed cash collection, inflated DSO, and potential revenue write-offs

Answer

Improved customer satisfaction scores

Answer

Reduction in the number of invoices generated

Answer

Decreased workload for the collections team