Accounting Multiple Choice Question – 28 December 2025

Which ONE of the following controls best mitigates the risk that customers might not be able to pay?

Select ONE answer:

1. Use of a standard template to prepare the invoices
2. Obtaining customers’ signatures on delivery documentation
3. Regular preparation of trade receivables statements
4. Checking the ageing of the current receivables ledger balance before accepting an order from a customer

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct => Checking the ageing of the current receivables ledger balance before accepting orders to assess the creditworthiness and history of payments will mitigate risk. The first three options are not correct, as they are procedures that take place after the customer has made the purchase.

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