Confirmation of Accounts Receivable Involves ________

question 13

Multiple Choice

Confirmation of accounts receivable involves ________.

• A)confirming accounts receivable with the client
• B)confirming accounts receivable with the bank
• C)direct written communication between the client's customers and the auditor
• D)direct written communication between the client's customers and the client

---

Definitions:

Fixed Assets

Long-term tangible assets that a firm owns and uses in the production of its income and is not expected to be converted into cash in the short term, such as buildings, machinery, and land.

Depreciation

A method in accounting that spreads the expense of a tangible asset across its lifespan.

Useful Services

Refers to the benefits or utilities that consumers receive from a product or service, contributing to its value in fulfilling particular needs.

Insurance Policy

An insurance policy is a contract between an insurer and the policyholder, detailing the terms under which the insurer agrees to compensate the policyholder for specific losses or damages covered by the policy.