Alternative Procedures That Would Provide Evidence of the Existence of Receivables

question 57

Multiple Choice

Alternative procedures that would provide evidence of the existence of receivables would include which of the following?

• A)Physical observation of customer facilities.
• B)Review of subsequent collections.
• C)Analysis of the aged trial balance.
• D)A confirmation to the client management for customer accounts.

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Definitions:

Pay Cut

A pay cut is a reduction in an employee’s salary or wages, often implemented by employers to reduce costs during financial hardships or organizational restructuring.

Imports

Goods and services bought from foreign countries for domestic consumption or use.

Rate of Inflation

The measurement of how rapidly the general price level of goods and services escalates, which in turn, reduces the purchasing strength.

Unemployment Rate

The ratio of individuals in the labor force who are without a job and actively seeking employment.