An Audit of Customer Accounts Receivable Found That Outstanding Receivables

question 247

Multiple Choice

An audit of customer accounts receivable found that outstanding receivables as a percentage of revenue had increased significantly during the past two years. The increase was attributed to the extension of credit, at the urging of the marketing department, to a number of companies that were not credit worthy. Which of the following would be least useful in monitoring the disposition of this finding?

• A) Responses from the manager of accounts receivable regarding collection of outstanding receivables.
• B) Periodic updates from the controller regarding the status of corrective actions.
• C) Information from the credit and marketing personnel assigned the responsibility for reevaluating credit policies.
• D) Updates from the information technology division regarding implementation of a new accounts receivable system.

Understand the American Psychological Association’s recommendations for constructing figures such as bar charts and frequency polygons.

Analyze the shape of distributions based on given data or descriptions.

Interpret the implications of different distribution shapes in real-life contexts, such as exam performance or attitudes toward social issues.

Differentiate between symmetrical and asymmetrical distributions.

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Definitions:

HA

Hyaluronic Acid, a substance naturally present in the human body and used in cosmetic products for its hydrating properties and in medicine for treating joint disorders.

K

Potassium, an essential dietary mineral and a major electrolyte in the body, key for muscle function and nerve transmission.

pH

pH is a scale used to specify the acidity or basicity of an aqueous solution, with values below 7 being acidic, above 7 being basic (alkaline), and exactly 7 being neutral.

HBr

Hydrobromic acid is created by the dissolution of hydrogen bromide into water, resulting in a potent acid.