Poor Controls Over Credit Limit Approval or in Changing the Credit

question 101

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 account receivables.

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Definitions:

Transduction

The process by which sensory stimuli are converted into signals the brain can interpret, beginning the process of perception.

Sensory Adaptation

Sensory receptors' diminishing sensitivity to persistent stimuli through time.

Threshold

The level of stimulation required to trigger a neural impulse.

Signal Detection

Signal detection involves the process of identifying and processing sensory stimuli or signals, discerning them from background noise, and making decisions based on that information.