AI Cash Application in Accounts Receivable Quiz

Answers and explanations appear as you take the quiz.

1. Why is cash application often difficult even when the bank shows exactly how much was received?
   • Banks do not send payment files to companies
   • Remittance details often arrive separately from the payment, by email, portal or EDI
   • Invoices usually lack invoice numbers
   • ERP systems cannot record partial payments
2. A single payment with no remittance must be matched against many open invoices. What kind of search does this require?
   • Sorting invoices by due date only
   • Optical character recognition of the bank file
   • Linear regression on invoice amounts
   • A subset-sum search for open invoices that add up to the payment
3. A customer deducts $1,200 for damaged goods. What does the guide describe as the better practice?
   • Leave the entire payment unapplied
   • Write off the $1,200 immediately
   • Apply the amount received and open a deduction case with a reason code
   • Return the payment to the customer
4. Why can a high auto-match rate be misleading?
   • Wrong matches post silently and hide errors in customer balances
   • Automatic matching is not allowed by auditors
   • It increases days sales outstanding
   • Banks charge a fee for each match
5. Why does the guide suggest survival analysis for late-payment prediction?
   • It requires no historical data
   • It accounts for invoices still open, whose final payment date is unknown
   • It guarantees accurate predictions
   • It only works for check payments
6. Which formats does the guide name for bank statement data used in cash application?
   • BAI2 and ISO 20022 camt.053
   • EDI 850 purchase orders
   • XBRL financial filings
   • PDF/A archive files
7. A wire arrives under a parent company's name. How does an AI system identify the right customer account?
   • It rejects the payment until remittance arrives
   • It applies it to the customer with the largest balance
   • It uses learned history linking payer names and bank accounts to customer accounts
   • It posts the amount directly to revenue
8. How does the guide say late-payment predictions should be used?
   • To cut off customer credit automatically
   • To prioritize collections outreach and inform cash forecasts, with people making credit decisions
   • To change invoice prices after issue
   • To replace remittance advice