Accredited ACH Professional (AAP) Practice Exam

Which field identifies a government or commercial entry?

1. Originator Code

2. Entry Description

3. Originator Status Code

4. Transaction Type Code

The correct answer is: Originator Status Code

The correct answer, which identifies a government or commercial entry in the ACH (Automated Clearing House) network, is indeed the Originator Status Code. This code specifically denotes the type of entry, distinguishing between government entities and commercial businesses. The Originator Status Code provides critical information for processing and reporting purposes, helping financial institutions and processing systems understand the nature of the transaction without needing to analyze additional fields. While other options contain useful information, they do not serve the primary function of identifying the nature of the originator as clearly as the Originator Status Code does. The Originator Code includes details about the organization but does not specify whether it is a government or commercial entry. The Entry Description provides a narrative about the transaction but lacks the specific nature of the transaction type itself. The Transaction Type Code indicates the kind of transaction (such as debit or credit) but does not classify the entry as governmental or commercial, making it essential to rely on the Originator Status Code for that specific identification.