For Effective Internal Control,the Billing Function Should not Be Performed

question 63

Multiple Choice

For effective internal control,the billing function should not be performed by the:

• A)Sales department.
• B)Accounting department.
• C)Finance department.
• D)Information Processing department.

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Definitions:

Prepayment Penalty Clause

A provision in a contract that imposes a penalty on a borrower for paying off a loan before its maturity date.

Mortgage Loan

A mortgage is a loan that is secured by tangible real estate property, evidenced through a mortgage note that demonstrates both the loan's existence and the property's lien.

Penalty

A sum inserted into a contract not as a measure of compensation for its breach but rather as punishment for a default. The agreement as to the amount will not be enforced, and recovery will be limited to actual damages.

Lien

A legal right or claim against a property by a creditor to secure the payment of a debt or obligation.