Poor Controls Over Credit Limit Approval or in Changing the Credit

question 60

Multiple Choice

Poor controls over credit limit approval or in changing the credit limit in the master file may result in

• A)confused and frustrated customers.
• B)incomplete sales records.
• C)financial statement errors for sales and AR accounts.
• D)excessive bad debts and uncollectible accounts receivable.

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Definitions:

Passivity

In context, it refers to the lack of active responses or actions in a situation, leading to acceptance of circumstances without attempt to change them.

Cliques

Social groups that are often exclusive and unified, formed around common interests or friendships, and are characterized by strong in-group loyalty.

Intimate Friendships

Close personal relationships marked by a deep level of understanding, trust, and emotional connection.

Crowds

Large groups of people gathered together, often for a common purpose or event.