Calculating the Turnover of Receivables Is Often Used in Testing

question 96

Multiple Choice

Calculating the turnover of receivables is often used in testing the sales cycle by auditors when performing which of the following?

• A)Trend analysis.
• B)Ratio analysis.
• C)Reasonableness testing.
• D)Nonstatistical sampling.

---

Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response originally elicited by the second stimulus is eventually elicited by the first stimulus alone.

Reciprocal Determinism

The idea that people choose the environments they enter and then change them.

Introverted Tendencies

Characteristics or behaviors of an individual that show a preference for inward-focused experiences and activities, often entailing less social interaction.

Stimulating Environments

Refers to settings or situations that provide a range of sensory and intellectual stimuli, potentially enhancing cognitive function and emotional well-being.