Day: December 29, 2025

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

Select ONE answer:

1. Authorisation of credit terms to customers by a senior finance professional
2. Use of a standard template to prepare the invoices
3. Obtaining customers’ signatures on delivery documentation
4. Regular preparation of trade receivables statements

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 1

1. Correct => Authorisations of credit terms to customers will mitigate risk. The first three options are incorrect because they are procedures that occur after the customer has made the purchase.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.