The Holly Hill vendor account has this issue: supplier places account on hold. Which administrative control should be used?
Correct Answer
A) payment-priority review
Vendor credit issues should be supported by applications, payment reviews, or statement reconciliations.
Why This Is the Correct Answer
Vendor credit issues should be supported by applications, payment reviews, or statement reconciliations.
Why the Other Options Are Wrong
Option B: account reactivation note
account reactivation note puts the item in the wrong financial bucket, timing, base, or comparison for vendor credit administration.
Option C: statement-match record
statement-match record puts the item in the wrong financial bucket, timing, base, or comparison for vendor credit administration.
Option D: limit-change memo
limit-change memo puts the item in the wrong financial bucket, timing, base, or comparison for vendor credit administration.
Memory Technique
Issues and supported point to different ledger roads for Supervisor Reviews.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Vendor Credit Accounts; use the stated business record or control rule to verify the answer.
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The Dade City purchasing-card audit finds this issue: charge coded to closed project. Which administrative response should be recorded?