Most Tests of Accounts Receivable and the Allowance for Uncollectible

question 52

Multiple Choice

Most tests of accounts receivable and the allowance for uncollectible accounts are based on:

• A) the general ledger balance of each account.
• B) the results of confirmations.
• C) the aged trial balance.
• D) the results of analytical procedures.

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Definitions:

Assignment

The transfer of rights, property, or obligations from one party to another.

Delegation

The act of assigning responsibility or authority from one person to another to carry out specific activities.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, albeit without any intention from the contracting parties to benefit the third party.

Contract

A legally enforceable agreement between two or more parties with mutual obligations.