Which statement is true about the Active and Inactive statuses?

• A. Both Active and Inactive are valid effective statuses
• B. Only Active is an effective status
• C. Only Inactive is an effective status
• D. Neither Active nor Inactive is an effective status

Answer: (A)

An effective status is the state that governs how rules apply to a record during a specific time period. Both Active and Inactive can be in effect, depending on what is happening with the person and when. When someone is currently working, Active drives eligibility for payroll, benefits, and access. If someone is on leave, between assignments, or otherwise not actively working but still in the system, Inactive can be the controlling state for that period. Because you need to reflect both ongoing employment and transitional moments, both statuses are valid as effective statuses. Relying on only one would fail to capture real-world situations like leaves or upcoming rehires, whereas allowing both keeps the data accurate and the rules consistent across time.