Question

With which of the following client personnel would it generally not be appropriate to inquire about commitments or contingent liabilities?

A) controller
B) president
C) accounts receivable clerk
D) vice president of sales

Answer 1

The accounts receivable clerk may not have information on commitments or contingent liabilities, while the controller, vice president of sales, and president may have insights.

Step-by-step explanation:

When inquiring about commitments or contingent liabilities, it would generally not be appropriate to approach the accounts receivable clerk, as their role primarily involves tracking and processing customer payments, rather than dealing with financial commitments or liabilities. On the other hand, the controller and vice president of sales may have insights into financial commitments and contingent liabilities, as they are involved in financial management and decision-making processes within the company. The president may also have knowledge of significant commitments or liabilities as they oversee the overall operations and strategic direction of the organization.