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:

Rule Infraction

The act of violating or breaking established rules or guidelines.

Subjectivity of Perception

The idea that individual experiences and biases affect how one perceives the world, making perception a highly personal experience.

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Donald Hebb

A Canadian psychologist who proposed the theory that neurons that fire together wire together, contributing to learning and memory.