What does ARC stand for in the context of the Standard Entry Class Code?

What does ARC stand for in the context of the Standard Entry Class Code?

• A. Account Receivable Control
• B. Accounts Receivable Entries
• C. Automated Revenue Collection
• D. Accounting Record Center

Answer: (B)

The correct answer is that ARC stands for Accounts Receivable Entries. This designation is used within the ACH (Automated Clearing House) network to facilitate the processing of transactions related to the collection of payments, typically from consumers for bills or other obligations. Accounts Receivable Entries specifically refer to a type of ACH debit entry initiated by a business, allowing the business to collect payments from a consumer’s bank account. This is commonly employed for recurring payments such as utility bills, insurance premiums, or subscription services, where businesses seek to streamline the collection process and enhance cash flow management. Understanding this term is crucial for professionals in the ACH field, as it directly relates to the operations and compliance aspects of processing such transactions within the ACH network. The other choices suggest different meanings, but only the concept of Accounts Receivable Entries accurately captures the intended use and context of ARC within the Standard Entry Class Code framework.

The correct answer is that ARC stands for Accounts Receivable Entries. This designation is used within the ACH (Automated Clearing House) network to facilitate the processing of transactions related to the collection of payments, typically from consumers for bills or other obligations.

Accounts Receivable Entries specifically refer to a type of ACH debit entry initiated by a business, allowing the business to collect payments from a consumer’s bank account. This is commonly employed for recurring payments such as utility bills, insurance premiums, or subscription services, where businesses seek to streamline the collection process and enhance cash flow management.

Understanding this term is crucial for professionals in the ACH field, as it directly relates to the operations and compliance aspects of processing such transactions within the ACH network. The other choices suggest different meanings, but only the concept of Accounts Receivable Entries accurately captures the intended use and context of ARC within the Standard Entry Class Code framework.