Kisk assment - higher risk more safeguard required wfo.cnnction Systems - only authorized users Monitoring of Controls must consistowly monitor controla Environment - tone at "top" 1) Which of the following statements regarding receivables is correct? A) Each receivable transaction involves three parties. B) Receivables occur when a business loans money to another party. C) A receivable occurs when a business makes a cash sale of goods or services to another party. D) A receivable is the right to pay cash in the future from a current receivable transaction. 2) Which of the following statements, regarding notes receivable, is incorrect? A) Notes receivable usually have longer terms than accounts receivable. B) A notes receivable is a written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. C) All notes receivable are considered long-term assets. D) Notes receivable are sometimes called promissory notes. 3) Which of the following is an example of exercising internal control over receivables? A) separating cash collection and credit approval duties B) extending credit to all customers who apply for credit C) combining the duties of the credit and accounting department 1) Which of the following statements regarding receivables is correct? A) Each receivable transaction involves three parties. B) Receivables occur when a business loans money to another party. C) A receivable occurs when a business makes a cash sale of goods or services to another party. D) A receivable is the right to pay cash in the future from a current receivable transaction. 2) Which of the following statements, regarding notes receivable, is incorrect? A) Notes receivable usually have longer terms than accounts receivable. B) A notes receivable is a written promise that a customer will pay a fixed amount of principal plus interest by a certain date in the future. C) All notes receivable are considered long-term assets. D) Notes receivable are sometimes called promissory notes