Question

What is the requirement for all credit memoranda?

1) require customer approval for all credit memoranda
2) require employee approval for all credit memoranda
3) require supervisor approval for all credit memoranda
4) require management approval for all credit memoranda

Answer 1

The most common requirement for all credit memoranda is supervisor approval to ensure accurate and authorized transactions and to prevent fraudulent activity.

Step-by-step explanation:

The requirement for all credit memoranda generally involves an approval process to ensure the transaction is authorized and accurate. While policies might vary from one organization to another, the most common requirement is for supervisor approval for all credit memoranda. This is to provide an additional level of oversight and to prevent errors or fraudulent activity. Moreover, supervisors are typically more aware of the context surrounding a transaction and can make informed decisions about issuing credit.