Which condition must be true for a residual value to exist?

Which condition must be true for a residual value to exist?

• A. The old document value is greater than zero.
• B. The new document's amount is greater than the old document.
• C. The new document's amount is less than the old document.
• D. There is no old document.

Answer: (C)

Residual value appears only when you have an existing old document and you issue a new document with a smaller value. The leftover amount, equal to old amount minus new amount, becomes the residual value. So the condition must be that the new document’s amount is less than the old document’s amount. For example, old value 500 and new value 350 leaves a residual value of 150 that can be used later. If the new value is equal to or greater than the old value, there is no residual value. If there is no old document at all, there’s nothing to have a residual from.

Residual value appears only when you have an existing old document and you issue a new document with a smaller value. The leftover amount, equal to old amount minus new amount, becomes the residual value. So the condition must be that the new document’s amount is less than the old document’s amount. For example, old value 500 and new value 350 leaves a residual value of 150 that can be used later. If the new value is equal to or greater than the old value, there is no residual value. If there is no old document at all, there’s nothing to have a residual from.