All of the Following Are Important Controls Over Credit Memos

question 34

Multiple Choice

All of the following are important controls over credit memos except:

• A)proper segregation of duties to ensure that sales discounts taken were earned.
• B)credit memos should be approved by someone other than whoever initiated it.
• C)credit memos should be supported by a receiving document for returned goods.
• D)proper segregation of duties between access to customer records and authorising credit memos.

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Definitions:

Fairness of Rewards

The perceived equity and justice of the distribution of outcomes and rewards among individuals or groups, influencing their satisfaction and motivation.

Perceived Inequity

The feeling of being unfairly treated when comparing one's own effort-reward ratio to the effort-reward ratio of others.

Equity of Fairness

A principle of justice that emphasizes fair treatment and equal opportunities for all individuals.

Work Ethic

The principle that hard work is intrinsically virtuous or worthy, often reflected in a person's attitudes toward their job.