The Primary Purpose of Accounts Receivable Confirmation Is to Satisfy

question 10

Multiple Choice

The primary purpose of accounts receivable confirmation is to satisfy the:

• A) existence objective.
• B) accuracy and cutoff objectives.
• C) existence and cutoff objectives.
• D) existence, accuracy and cutoff objectives.

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Definitions:

Savings Account

A deposit account held at a financial institution that provides principal security and a modest interest rate.

Annual Interest

The amount of interest due over the course of a year on a loan, deposit, or investment, typically expressed as a percentage of the principal.

Economic Cost

The total cost of choosing one action over another, including both the explicit financial cost and the opportunity cost.

Hourly Wage

Compensation paid to employees based on the number of hours worked, typically expressed as an amount of money per hour.