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

Proper B2B invoice documentation for tax purposes requires the seller's EIN and an itemized breakdown of goods or services sold with corresponding amounts.

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

Authentication and access controls prevent unauthorized creation, alteration, or deletion of electronic invoices, which is the foundational security requirement for any e-invoicing system.

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

Proactive correction demonstrates integrity, prevents customer disputes, and maintains trust—key principles in professional AR management.

Question 4

What does 'Net 30' on an invoice mean?

Accepted Answer

Payment is due within 30 days of the invoice date

Answer

Net 30 is a standard payment term indicating the full invoice amount is due within 30 calendar days of the invoice date.

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

Consolidated billing aggregates all transactions for a given customer over a period—weekly, monthly—into a single invoice, simplifying payment processing for both parties.

CRPA - Certified Receivables Professional Practice Test

CRPA - Certified Receivables Professional Practice Test

CRPA Customer Billing & Invoice Management 3