CTP - Module 4|Questions with complete solutions | 100% verified|54 pages

CTP - Module 4 Acceptance ANSWER- A drawee's signed agreement to pay a negotiable instrument (typically a letter of credit or related draft) as presented. This acknowledges that all of the terms of the instrument, other than time, have been met and the instrument will be paid at the proper time. Account reconciliation program (ARP) ANSWER- A service offered by a financial institution that matches issue information to paid check information and reports outstanding/unpaid items. Accounts receivable (A/R) balance pattern ANSWER- A forecasting tool that specifies the percentage of credit sales during a time period (e.g., one month) that remain outstanding at the end of the current time period and each subsequent time period. Accounts Receivable Conversion (ARC) ANSWER- A US automated clearinghouse (ACH) format used to convert eligible checks received at a lockbox into electronic debits and process them as automated clearinghouse (ACH) transactions. The company receiving the checks must notify the check writer that checks will be converted. This is the standard entry class (SEC) code for this format. Accredited Standards Committee (ASC) X12 ANSWER- A not-for-profit organization chartered by the American National Standards Institute (ANSI), responsible for developing and maintaining cross-industry electronic data interchange (EDI) message standards in the United States.