An Auditor Discovered That a Client's Accounts Receivable Turnover Is

question 16

Multiple Choice

An auditor discovered that a client's accounts receivable turnover is substantially lower for the current year than for the prior year.This may indicate that:

• A)Obsolete inventory has not yet been reduced to fair market value.
• B)There was an improper cutoff of sales at the end of the year.
• C)An unusually large receivable was written off near the end of the year.
• D)The aging of accounts receivable was improperly performed in both years.

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Definitions:

Linked List

A data structure consisting of nodes, each containing data and a reference (or link) to the next node in the sequence, facilitating dynamic memory management.

Privacy Leak

The unauthorized disclosure of personal or confidential information.

Linked Lists

A linear data structure where each element is a separate object called a node, with nodes linked using pointers.

Data Items

Individual units of data, such as variables or constants, used in programming to store values.