Multiple choice technology packaged enterprise solutions

Commitment is nothing but _________

  1. A.Adjustments

  2. B. Debit Memos

  3. C. Gurantee or deposit

  4. D. Credit memo
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In accounts receivable, a commitment represents a guarantee or deposit provided by a customer, often as security for future transactions or credit. This is distinct from adjustments, debit memos, or credit memos which are transactional documents. The commitment serves as a financial assurance until the underlying obligation is fulfilled.

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