Which of the Following Is a Weak Internal Control Over

question 103

Multiple Choice

Which of the following is a weak internal control over cash collections from receivables?

• A) The credit department should have no access to cash.
• B) A credit department should evaluate customers' credit applications to determine whether they meet the company's approval standards.
• C) A company should have written approval standards for processing customers' credit applications.
• D) In order to avoid losing sales, all customers' credit applications should be approved.

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Definitions:

Highly Charged

Describes an object or situation that holds a significant amount of electrical charge or emotional intensity.

Information Overload

A condition where an individual is exposed to too much information, making it difficult to process, understand, and make decisions.

Overused

Refers to something that is used more often than is necessary or advisable, which can lead to inefficiency or diminished effectiveness.

In-Person Communication

Direct communication between individuals present in the same location, involving verbal and non-verbal interaction.