The Auditor Learns That Collections of Accounts Receivable During the First

question 37

Multiple Choice

The auditor learns that collections of accounts receivable during the first ten days of January were entered as debits to cash and credits to accounts receivable as of December 31. The effect generally will be to:

• A) overstate working capital with no effect on the current ratio at December 31.
• B) leave both working capital and the current ratio unchanged at December 31.
• C) overstate both working capital and the current ratio at December 31.
• D) overstate the current ratio with no effect on working capital at December 31.

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Definitions:

Burning Sensations

A painful feeling of heat often experienced in parts of the body, like when touching something very hot or during certain medical conditions.

Electric-shock Sensations

Uncommon sensations often described by individuals as brief, jolting experiences that can occur spontaneously or may be related to specific conditions like neuropathy.

Delusions of Persecution

False beliefs that one is being harmed, harassed, or targeted by others, often seen in paranoid schizophrenia and other psychotic disorders.

Inheritance

This is the process by which genetic information is passed on from parents to their offspring, influencing traits and characteristics.