AAP PRACTICE TEST 2026 QUESTIONS WITH
CORRECT ANSWERS
◉ Payment Mechanism. Answer: Any device, instrument, or system
that accomplishes the transfer of money. Payment mechanisms
include cash, checks, ACH Network, automated teller, and point-of-
sale or card systems.
◉ Payment Order. Answer:
◉ Payment Order/ Advice (820). Answer: An ASC X12 transaction
set used for the purposes of making a payment, sending an advice of
payment, or both.
◉ Payment System. Answer: A communications system having the
provisions to provide settlement information.
◉ Pending File. Answer: A file containing ACH entries for future
release into the ACH Network according to effective entry date.
◉ Periodic Statement. Answer: A summary report provided to the
account holder at specific intervals, usually monthly, containing
information concerning the posting of credits and debits to a
,transaction account. When an account has ACH activity, a statement
must be provided at least monthly showing such activity.
◉ Person-to-Person Entry (P2P). Answer: A credit entry initiated by
or on behalf of a holder of a Consumer Account that is intended for a
Consumer Account of a Receiver. The entry may be a transfer of
funds to the Originator's own consumer account at another FI or it
may be a transfer of funds to another Receiver consumer's account.
A P2P entry uses the Internet-Initiated Mobile entry (WEB)
Standard Entry Class Code.
◉ Point-of-Purchase Entry (POP). Answer: A single-entry debit
initiated by an Originator pursuant to an eligible source document
(i.e., check) provided by the Receiver at the point of purchase or a
manned bill payment location to effect a transfer of funds from an
account of the Receiver
◉ Point-of-Sale Entry (POS). Answer: A debit entry initiated at an
electronic terminal as defined in Regulation E of the Board of
Governors of the Federal Reserve System to effect a transfer of funds
from a consumer account of the Receiver to pay an obligation
incurred at a point-of-sale transaction, or to effect a point-of-sale
terminal cash withdrawal. (See also SHR.)
◉ Posting. Answer: The process of recording debits and credits to
individual account balances.
,◉ Prearranged Payment or Deposit (PPD). Answer: A credit or debit
entry initiated by an Organization to a Consumer Account of a
Receiver based on a standing or Single entry authorization from the
Receiver. Prearranged Payment or Deposit entries are identified by
the standard entry class code PPD.
◉ Prenotification (Prenote). Answer: A Non-Monetary entry that
may be sent through the ACH Network by an Originator to alert an
RDFI that a livedollar transaction will be forthcoming and that
verification of the Receiver's account number is required.
◉ Presentment. Answer: The physical delivery of a negotiable
instrument by a holder to the drawee for payment or acceptance.
◉ Presort. Answer: The sorting of entries by an ODFI (or ACH
Operator) of individual ACH transactions using the
Federal Reserve's bulk data system.
◉ Processor. Answer: Any organization performing data processing
services in regard to ACH transactions including service bureaus,
Third- Party Service Providers, ACH Operators, etc.
, ◉ Program Agency. Answer: Agency of the federal government
responsible for determining entitlement and authorizing a payment
to be made, such as the Social Security Administration.
◉ Protected Information. Answer: The non-public personal
information, including financial information, of a natural person
used to create, or contained within, an entry and any related
Addenda Record.
◉ Provisional Settlement. Answer: The conditional settlement of
debits and credits transferred via the ACH Network. Until declared
final by the Federal Reserve, provisional settlement may be reversed
by the Federal Reserve.
◉ Receiver. Answer: An individual, corporation or other entity who
has authorized an Originator to initiate a credit entry, debit entry, or
Non-Monetary entry to the Receiver's account held at the RDFI.
◉ Receiving Depository Financial Institution (RDFI). Answer: A
Participating Depository Financial Institution that receives ACH
entries from the ACH Operator to the accounts of Receivers. An RDFI
must agree to abide by the NACHA Operating Rules.
◉ Receiving Point. Answer: A site where entries are received from
an ACH Operator for processing. It may be the RDFI, its data center
CORRECT ANSWERS
◉ Payment Mechanism. Answer: Any device, instrument, or system
that accomplishes the transfer of money. Payment mechanisms
include cash, checks, ACH Network, automated teller, and point-of-
sale or card systems.
◉ Payment Order. Answer:
◉ Payment Order/ Advice (820). Answer: An ASC X12 transaction
set used for the purposes of making a payment, sending an advice of
payment, or both.
◉ Payment System. Answer: A communications system having the
provisions to provide settlement information.
◉ Pending File. Answer: A file containing ACH entries for future
release into the ACH Network according to effective entry date.
◉ Periodic Statement. Answer: A summary report provided to the
account holder at specific intervals, usually monthly, containing
information concerning the posting of credits and debits to a
,transaction account. When an account has ACH activity, a statement
must be provided at least monthly showing such activity.
◉ Person-to-Person Entry (P2P). Answer: A credit entry initiated by
or on behalf of a holder of a Consumer Account that is intended for a
Consumer Account of a Receiver. The entry may be a transfer of
funds to the Originator's own consumer account at another FI or it
may be a transfer of funds to another Receiver consumer's account.
A P2P entry uses the Internet-Initiated Mobile entry (WEB)
Standard Entry Class Code.
◉ Point-of-Purchase Entry (POP). Answer: A single-entry debit
initiated by an Originator pursuant to an eligible source document
(i.e., check) provided by the Receiver at the point of purchase or a
manned bill payment location to effect a transfer of funds from an
account of the Receiver
◉ Point-of-Sale Entry (POS). Answer: A debit entry initiated at an
electronic terminal as defined in Regulation E of the Board of
Governors of the Federal Reserve System to effect a transfer of funds
from a consumer account of the Receiver to pay an obligation
incurred at a point-of-sale transaction, or to effect a point-of-sale
terminal cash withdrawal. (See also SHR.)
◉ Posting. Answer: The process of recording debits and credits to
individual account balances.
,◉ Prearranged Payment or Deposit (PPD). Answer: A credit or debit
entry initiated by an Organization to a Consumer Account of a
Receiver based on a standing or Single entry authorization from the
Receiver. Prearranged Payment or Deposit entries are identified by
the standard entry class code PPD.
◉ Prenotification (Prenote). Answer: A Non-Monetary entry that
may be sent through the ACH Network by an Originator to alert an
RDFI that a livedollar transaction will be forthcoming and that
verification of the Receiver's account number is required.
◉ Presentment. Answer: The physical delivery of a negotiable
instrument by a holder to the drawee for payment or acceptance.
◉ Presort. Answer: The sorting of entries by an ODFI (or ACH
Operator) of individual ACH transactions using the
Federal Reserve's bulk data system.
◉ Processor. Answer: Any organization performing data processing
services in regard to ACH transactions including service bureaus,
Third- Party Service Providers, ACH Operators, etc.
, ◉ Program Agency. Answer: Agency of the federal government
responsible for determining entitlement and authorizing a payment
to be made, such as the Social Security Administration.
◉ Protected Information. Answer: The non-public personal
information, including financial information, of a natural person
used to create, or contained within, an entry and any related
Addenda Record.
◉ Provisional Settlement. Answer: The conditional settlement of
debits and credits transferred via the ACH Network. Until declared
final by the Federal Reserve, provisional settlement may be reversed
by the Federal Reserve.
◉ Receiver. Answer: An individual, corporation or other entity who
has authorized an Originator to initiate a credit entry, debit entry, or
Non-Monetary entry to the Receiver's account held at the RDFI.
◉ Receiving Depository Financial Institution (RDFI). Answer: A
Participating Depository Financial Institution that receives ACH
entries from the ACH Operator to the accounts of Receivers. An RDFI
must agree to abide by the NACHA Operating Rules.
◉ Receiving Point. Answer: A site where entries are received from
an ACH Operator for processing. It may be the RDFI, its data center
