A Credit Memo Is a Document Used Internally That Indicates

question 17

True/False

A credit memo is a document used internally that indicates authority to write-off an account receivable as uncollectible.

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 aimed at protecting investors from fraudulent accounting activities by corporations.

Fraud

A deliberate act of deception intended for personal gain or to cause a loss to another party.

Whistle-Blowing

Employee’s disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices committed by an organization.