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NEW QUESTION: 1
Having adequate lighting on the outside of a building is an example of which of the following security controls?
A. Detective
B. Deterrent
C. Preventative
D. Compensating
Answer: B

NEW QUESTION: 2
An organization would usually offer credit terms of 2/10, net 30 when:
A. The organization can borrow funds at a rate less than the annual interest cost.
B. Most competitors are offering the same terms, and the organization has a shortage of cash.
C. The cost of capital approaches the prime rate.
D. Most competitors are not offering discounts, and the organization has a surplus of cash.
Answer: B
Explanation:
Choice "d" is correct. Offering favorable credit terms is usually a response to either competitive forces in
the market or to improve cash flow. Choice "a" is incorrect, although the payment terms of AR is a form of
borrowing (or lending) to customers, companies are more likely to extend credit terms because of
competitive pressures rather than because it represents a cheaper form of borrowing. Choice "b" is
incorrect. The cost of capital at (or approaching) the prime rate is irrelevant without additional information.
Choice "c" is incorrect. If most competitors are not offering discounts or credit terms, there is no reason to
offer them. Also, if there is a surplus of cash, there is no reason to accelerate accounts receivable
collection by offering credit terms.

NEW QUESTION: 3

Answer:
Explanation:
B