Negative Confirmation of Accounts Receivable Is Less Effective Than Positive

question 5

Multiple Choice

Negative confirmation of accounts receivable is less effective than positive confirmation of accounts receivable because:

• A)a majority of recipients usually lacks the willingness to respond objectively.
• B)some recipients may report incorrect balances that require extensive follow up.
• C)the auditor cannot infer that all nonrespondents have verified their account information.
• D)negative confirmations do not produce evidential matter that is statistically quantifiable.

Account for the effect of investee's net income and dividends on investor's financial statements.

Calculate and account for the equity in investee income.

Determine the impact of intra-entity transactions on the investment account.

Prepare appropriate journal entries related to the equity method of accounting.

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Definitions:

Egocentric Speech

Speech used by children, in which they talk about themselves and their perspective, often without regard for the listener's understanding or viewpoint.

Fast Mapping

The process in which new words are associated with their meaning after only a brief encounter.

Private Speech

Spoken language that is not intended for others, commonly used by children during the preschool years.

Scaffolded Speech

An instructional technique where the support is gradually removed as the learner becomes more proficient, often seen in language learning where a teacher or caregiver provides tailored support to match the learner's current level.