The decision to extend credit beyond the normal credit limit is an example of
A)independent verification
B)authorization
C)segregation of functions
D)supervision

Question

Quizplus · Accepted Answer

The decision to extend credit beyond the normal credit limit requires authorization, as it involves a financial risk for the company. This decision should be made by an authorized person who has the power to approve or reject such requests based on the company's policy and available information.

The Decision to Extend Credit Beyond the Normal Credit Limit