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    NEW QUESTION: 1
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    You create a prepayment for USD l00 and validate it to consume the budget and reduce available funds under the prepayment account. You then pay the prepayment of USD 100 create an invoice for USD 300, and validate the* invoice to consume the budget and reduce available funds for the expense-accounts used in the invoice. You then apply the prepayment fully on to the invoice and revalidate it.
    What happens to the available funds when you apply a prepayment that requires budgetary control?
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    B. The prepayment application releases funds of 200 USD

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    nd the invoice consumes funds of lOO USD, with a net decrease to available funds of 200 USD.
    C. Available funds will not change till invoice is approved.
    D. The prepayment application was already released at the time of payment and the invoice consumes funds of 300 USD.
    E. The budget will be released only foi the USD 30O invoice amount.
    F. The prepayment application releases funds of 300 USD and the invoice consumes funds of 300 USD, with a net decrease to available funds of 100 USD.
    Answer: E

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