Which of the Following Is an Example of Exercise of Internal

question 52

Multiple Choice

Which of the following is an example of exercise of internal control over receivables?

• A)separate cash collection and credit allowance duties
• B)extend credit only to customers who are most likely to pay
• C)pursue collection from customers to maximize cash flow
• D)ensure quick recovery of accounts receivable

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Definitions:

UCC

The Uniform Commercial Code offers a comprehensive legal structure for the oversight of business interactions throughout the United States.

General Provisions

General provisions refer to standard clauses in contracts or laws that outline basic operational rules and requirements.

Special Provisions

Specific clauses in a contract, agreement, or statute that are aimed at addressing particular issues unique to that document.

Contracts

Legal agreements between two or more parties that create mutual obligations enforceable by law.