The Addenda Indicator has a value of _____ or ____.

Study for the WesPay Accredited ACH Professional Exam. Explore multiple choice questions with explanations to get ready for your exam! Review insights, improve understanding, and succeed in becoming an ACH Professional.

The Addenda Indicator being referenced in the ACH (Automated Clearing House) transaction context is a critical component that signifies whether or not there is additional data associated with a transaction. Specifically, when the Addenda Indicator has a value of 0, it indicates that there is no Addenda record associated with the transaction. Conversely, a value of 1 signifies that there is one Addenda record linked to the transaction.

Understanding this distinction is vital for handling ACH transactions appropriately, as it influences how the transaction data is processed and displayed. Transactions without an associated Addenda record (value 0) are straightforward, while those with a value of 1 require attention to additional information provided in the Addenda record, which may include essential details such as invoice numbers or payment descriptions.

The other options do not accurately represent the valid values for the Addenda Indicator in this context, as they either suggest incorrect pairings of values or imply a number of Addenda records that do not align with established ACH standards.

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