Extending credit to anyone who applies would violate what part of internal control?
A) Separation of cash-handling and credit approval
B) Pursuing collections from customers
C) Extend credit to customers most likely to pay
D) None of the above

Question

Quizplus · Accepted Answer

Extending credit only to customers most likely to pay is a fundamental principle of internal control related to credit management. This practice helps in minimizing the risk of bad debts and ensures that the company's assets are protected.

Extending Credit to Anyone Who Applies Would Violate What Part