Identify the Receivables activity type where you are unable to select the tax rate code source option of invoice.

Question

Options

• Aadjustment
• Bearned discount
• Cunearned discount
• Dmiscellaneous cash

• A
  6% (3)
• B
  13% (6)
• C
  4% (2)
• D
  77% (36)

Explanation

Miscellaneous Cash is the correct answer because this activity type is not linked to a specific customer invoice - it records standalone cash receipts applied directly to a GL account. Since there is no underlying invoice to reference, the system cannot use "Invoice" as the tax rate code source; only "Activity" or "None" are available.

Adjustments (A) are applied directly to existing transactions/invoices, so the "Invoice" source is available to pull tax information from that invoice. Earned discounts (B) and unearned discounts (C) are also invoice-related - they represent discounts taken on specific invoice balances, making the "Invoice" tax rate source a valid and logical choice for both.

Memory tip: Think "Miscellaneous = No Invoice." The word "miscellaneous" itself signals it's a catch-all, not tied to any specific invoice - and no invoice means no invoice tax source. The other three all describe what happens to an invoice (adjusting it, discounting it), while miscellaneous cash simply bypasses invoices entirely.

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