May 2025

Who is responsible for approving letters of credit at 3M?

• A) Global Treasury Transformation team
• B) Customer Issue Resolution (CIR) team
• C) Area Credit Risk Leader

What is 3M’s preferred form of payment?

• A) Cash
• B) Direct Debit
• C) Certified Check

What happens to accounts receivable when a payment is recorded in 3M’s bank account?

• A) Accounts receivable are reduced on the date the payment is received
• B) Accounts receivable are reduced only after customer confirmation
• C) Accounts receivable remain unchanged for 30 days

What is one of the key criteria for booking an accrual according to 3M's procedure?

• A. The amount must be greater than $100,000
• B. The financial impact can be estimated and the event is probable
• C. The transaction must involve a vendor from outside the United States

Which of the following is not a permitted use of accruals?

• A. Recognizing expenses for goods and services already received
• B. Matching expenses with revenues in the same period
• C. Smoothing expenses over multiple periods to match a budget

According to the procedure, what must happen to journal entries for accruals?

• A. They should never be reversed
• B. They must be processed as reversing entries
• C. They must be posted manually only

What is the maximum time allowed for accounts receivable to remain overdue before being written off according to 3M policy? ​

• A) 90 days past due
• B) 120 days past due
• C) 180 days past due

Which team is responsible for assessing the overall accounts receivable risk and ensuring compliance with this procedure? ​

• A) Human Resources
• B) Global Service Center (GSC), Customer Issue Resolution (CIR) team, and Global Credit Risk Management COE ​
• C) Marketing Department

What is the required frequency for preparing an aging analysis of accounts receivable balances?

• A) Monthly
• B) Quarterly
• C) Annually

What is the primary purpose of the Accounts Receivable Allowance Global Financial Procedure? ​

• A. To define the process for inter-company receivables. ​
• B. To ensure net A/R is correctly reported on 3M’s financial statements. ​
• C. To calculate sales rebates and chargebacks. ​