Which transactions would you find the funds heading away from the carrier?

Which transactions would you find the funds heading away from the carrier?

• A. Ticket sales
• B. Refunds and credit memos
• C. Airline fees
• D. Service charges

Answer: (B)

In ARC terminology, the direction of funds is about whether money is leaving the carrier’s books or coming in. Refunds and credit memos are outbound—they return money to passengers or reduce what the carrier expects to collect—so they represent funds heading away from the carrier. Ticket sales, airline fees, and service charges are all inflows to the carrier (money moving toward the airline) or pass through in a way that doesn’t reduce the carrier’s funds in the same outbound sense. Therefore, refunds and credit memos are the transactions that show funds heading away from the carrier.

In ARC terminology, the direction of funds is about whether money is leaving the carrier’s books or coming in. Refunds and credit memos are outbound—they return money to passengers or reduce what the carrier expects to collect—so they represent funds heading away from the carrier. Ticket sales, airline fees, and service charges are all inflows to the carrier (money moving toward the airline) or pass through in a way that doesn’t reduce the carrier’s funds in the same outbound sense. Therefore, refunds and credit memos are the transactions that show funds heading away from the carrier.