Free 1Z0-1055-21 Web TestEngine Demo

Q11 Single choice

You applied a prepayment amount of $5,000 USD to a $10,000 USD invoice. At the time of prepayment,
the applicable tax rate was 5% ($250 USD); at the time of invoice creation, the tax rate is 10%. When you
set up taxes, you choose to Recalculate Taxes for the Applied Amount Handling option.

How will the resulting tax be calculated?

A
The tax for the prepayment is recalculated and the generated tax line amount will be $250 USD (5% *
10,000-5000).
B
The tax for the prepayment is recalculated to use the new invoice tax rate that is also used for the invoice line amount. The two generated tax lines show $1,000 USD (10% * 10,000) for the invoice line tax amount and a prepayment tax line of -500 USD (10% * -5000).
C
The tax calculation creates two tax lines: one for the invoice line amount and one for the prepayment with a negative amount. The two generated tax lines show $1,000 USD (10% * 10,000) for the invoice line tax amount and a prepayment tax line of -250 USD (5% * -5000).
D
The tax calculated on the prepayment is reversed completely and the tax rateapplied to the invoice line is retained.

1Z0-1055-21 Web TestEngine demo