Which of the Following Is Not a Desirable Characteristic of an Effective

question 22

Multiple Choice

Which of the following is not a desirable characteristic of an effective monitoring system?

• A) Accurate
• B) Useful
• C) Timely
• D) Complex
• E) Economical

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Definitions:

Credit Period

The time frame granted by a creditor within which payment for a purchase must be made; typically used in commercial transactions.

Credit Risk

The risk of loss resulting from a borrower's inability to repay a loan or meet contractual obligations.

Carrying Cost

A financial term representing the total cost of holding inventory, including storage, insurance, taxes, and opportunity costs.

Receivables

Funds that customers owe to a business for products or services that have been provided but remain unpaid.