When issuing refunds, which statement about credit memos is accurate?

The statement regarding credit memos and their usage for cash refunds is accurate because credit memos serve as documentation that allows a business to adjust the amount owed by a customer. When a credit memo is issued, it can indicate that a refund is due back to a customer for various reasons, such as returning a product or a pricing adjustment.

Utilizing credit memos for cash refunds streamlines the process for businesses, allowing them to effectively manage customer accounts and ensure that records reflect the new amount owed after a refund has been processed. This is crucial in maintaining accurate financial records and ensuring customer satisfaction.

In contrast, credit memos do not have strict limitations on the timeframe of invoices they can affect (which negates the first statement), they directly relate to invoices for the same customer (thus making referencing a different customer inaccurate), and they actually adjust the amounts on the original invoice, rather than leaving it unaffected.