Which of the Following Procedures Would Provide the Best Evidence

question 389

Multiple Choice

Which of the following procedures would provide the best evidence of the effectiveness of a credit-granting function?

• A) Observe the process.
• B) Review the trend in receivables write-offs.
• C) Ask the credit manager about the effectiveness of the function.
• D) Check for evidence of credit approval on a sample of customer orders.

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Definitions:

Charles Spearman

A psychologist known for his work in statistics and intelligence, including the theory of general intelligence (g factor).

General Intelligence

The theory suggesting the existence of a single, underlying intellectual capacity that influences performance across various cognitive tasks.

Mental Age

A measure of an individual's mental attainment based on the age at which it is normal to reach a certain level of mental development.

Binet Test

An intelligence test developed by Alfred Binet, used to determine an individual's mental age and intellectual development.