Which three statements are true when a prepayment is applied to an invoice by selecting the option Include on Invoice?

Which three statements are true when a prepayment is applied to an invoice by selecting the
option Include on Invoice?

A.
The prepayment amount available for application is reduced.

B.
The unpaid invoice amount is reduced by the amount of the prepayment application.

C.
The unpaid invoice amount is not affected by the prepayment application.

D.
The invoice is updated to reflect the amount paid by prepayment in the Installments tab.

E.
The prepayment amount paid is NOT updated In the Installment tab of invoice.

Explanation:
B: When a prepayment is applied to an invoice, Payables automatically creates a
negative distribution and a negative scheduled payment for the prepayment in the amount of the
application.
A: Payables also reduces the Amount Available for prepayment by the amount applied. You can

see the original amount of the prepayment in the Amount field of the Invoice Overview. Payables
updates the status of an invoice paid by a prepayment to reflect the invoice as being paid by the
prepayment application.