Which of the following is a weak internal control over cash collections from receivables?
A) The credit department should have no access to cash.
B) A credit department should evaluate customers' credit applications to determine whether they meet the company's approval standards.
C) A company should have written approval standards for processing customers' credit applications.
D) In order to avoid losing sales, all customers' credit applications should be approved.
D
You might also like to view...
Reducing stressors may reduce the overall level of stress that a person experiences. However, this approach is likely to be most beneficial when the focus of the effort is on challenge stressors rather than hindrance stressors
Indicate whether this statement is true or false.
If Sam writes a check drawn on his account at First Bank to State University to pay his tuition:
a. Sam is the drawer. b. the university is the drawee. c. the bank is the payee. d. Sam is the maker.