A Customer Reply on a Positive Confirmation Says "We Dispute

question 44

Multiple Choice

A customer reply on a positive confirmation says "We dispute the $250 charge. We believe it is excessive." This confirmation:

• A)provides evidence of existence.
• B)does not provide evidence of existence because the customer may refuse to pay the $250 charge.
• C)provides evidence that the account was understated.
• D)provides evidence that the account should be written off.

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Definitions:

Residual Income

A measure of the excess profit that exceeds the required rate of return on investment.

Required Rate Of Return

The minimum return an investor expects to achieve by investing in a particular asset, reflecting the risk level of the investment.

Combined ROI

A measure of the total return on investment from multiple investments or projects, combined into one metric.

Investment Opportunity

An item or asset obtained with the intention of producing income or increasing in value.