Oracle Benefits Cloud 2023 Implementation Essentials — Question 3

Upon approval of a remittance batch of type Factored with Recourse, the Receivables application creates a receipt and establishes risk.
How does Receivables establish risk?

Answer options

• A. By recording short-term debt
• B. By generating a bills receivables adjustment
• C. By recording an entry to the Remitted Bills Receivable account
• D. By creating an on-account credit memo

Correct answer: A

Explanation

The correct answer is A because recording short-term debt is a direct method of establishing financial risk associated with a receivable. The other options, such as bills receivables adjustment, recording to the Remitted Bills Receivable account, and creating an on-account credit memo, do not specifically address the establishment of risk in the context of a remittance batch.