Page 7 - CHAPTER 10 - THE REVENUE AND RECEIPTS CYCLE
P. 7

REVENUE AND RECEIPTS CYCLE





            RISKS WITH SALES AUTHORISATIONS








            • Sales may be made to customers who are not


                creditworthy i.e. will not pay, resulting in loss to


                the company.




            • Sales may be made to customers who are not


                creditworthy i.e. will not take long to pay,


                resulting in bad debts and liquidity challenges to


                the company













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