Accredited ACH Professional (AAP) Practice Exam

Which ACH application allows the collection and disbursement of funds between corporate entities?

1. Accounts Receivable (ARC)

2. Corporate Trade Exchange (CTX)

3. Corporate Credit or Debit (CCD)

4. International ACH Transaction (IAT)

The correct answer is: Corporate Credit or Debit (CCD)

The correct answer is Corporate Credit or Debit (CCD) because this ACH application is specifically designed for businesses to exchange funds between corporate entities. This application facilitates the direct transfer of funds for various purposes, such as payroll processing, supplier payments, or other commercial transactions where funds need to move from one corporation to another. CCD transactions support both debits and credits, allowing businesses to either withdraw money from or deposit money into another business's account. This flexibility in handling different types of transactions makes the CCD application well-suited for corporate financial needs. In contrast, other choices serve different purposes. Accounts Receivable (ARC) transactions are used primarily for the collection of funds for consumer payments, typically related to utility bills or invoices, rather than between business entities. Corporate Trade Exchange (CTX) is designed to manage more complex payment structures that include remittance information but is not exclusively focused on simple corporate fund transfers. International ACH Transaction (IAT) is utilized for transactions that involve parties in different countries, focusing on international transfers rather than domestic corporate exchanges.