The Procedures Followed by the fiRm for Ensuring Payment on Its

question 246

Multiple Choice

The procedures followed by the firm for ensuring payment on its accounts receivables are called its ______________.

• A) Sales policy.
• B) Credit policy.
• C) Collection policy.
• D) Payables policy.
• E) Disbursements policy.

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Definitions:

Notice of Dishonor

A formal notification indicating that a negotiable instrument like a check or bill of exchange has been presented for payment and declined.

Endorser

One who issues an endorsement.

Unauthorized Signature

A signature made on a document by someone who doesn't have the legal authority or permission to sign it.

Negligence

Negligence is the failure to take proper care in doing something, leading to damage or injury to another person.