A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
Correct Answer
D) credit hold review
Customer credit status is based on whether unpaid invoices exceed the review threshold.
Why This Is the Correct Answer
Customer credit status is based on whether unpaid invoices exceed the review threshold.
Why the Other Options Are Wrong
Option A: bond release update
bond release update puts the item in the wrong financial bucket, timing, base, or comparison for customer credit status.
Option B: insurance claim closed
insurance claim closed puts the item in the wrong financial bucket, timing, base, or comparison for customer credit status.
Option C: vendor file archived
vendor file archived puts the item in the wrong financial bucket, timing, base, or comparison for customer credit status.
Memory Technique
Based and whether live in different drawers; Office Manager tells which opens.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Customer Credit and Collection Controls; use the stated business record or control rule to verify the answer.
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