Which of the Following Is an Example of Exercising Internal

question 113

Multiple Choice

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

• A) separating cash collection and credit approval duties
• B) extending credit to all customers who apply for credit
• C) combining the duties of the credit and accounting departments
• D) allowing credit department employees to collect cash from customers

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing banking services to governmental institutions.

Stock Index

An indicator used to measure and report value changes in a selection of stocks, which represents a specific segment of the stock market.

Risk-Free Rate

The expected yield from an investment that carries no risk, commonly exemplified by state bonds.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in the form of cash or additional shares.