The Usefulness of the Standard Bank Confirmation Request May Be

question 718

Multiple Choice

The usefulness of the standard bank confirmation request may be limited because the bank employee who completes the form may:

• A) Not believe that the bank is obligated to verify confidential information to a third party.
• B) Sign and return the form without inspecting the accuracy of the client's bank reconciliation.
• C) Not have access to the client's cutoff bank statement.
• D) Be unaware of all the financial relationships that the bank has with the client.

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Definitions:

Cash Inflows

Money or funds received by a business during a period of time from various sources including sales, investments, and financing.

Average Accounting Return

A measure of the profitability of an investment, calculated as the average net income generated by an investment divided by its initial cost.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, essentially the tax rate that applies to each additional dollar of income.