The Most Effective Audit Procedure for Determining the Collectability of an Account

question 86

Multiple Choice

The most effective audit procedure for determining the collectability of an account receivable is the:

• A)review of the subsequent cash collections.
• B)examination of the related sales invoice(s).
• C)confirmation of the account.
• D)review of authorization of credit sales to the customer and the previous history of collections.

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Definitions:

Unknown Variable

A symbol in mathematics and algebra that represents a number not yet identified but can be solved for in an equation.

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A visual representation of data designed to show comparative information or patterns.

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A mathematical statement that asserts the equality of two expressions, typically involving variables and constants.

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A unit of volume equivalent to 1000 cubic centimeters or 1 cubic decimeter, used in the metric system to measure liquids and gases.