Which of the Following Is NOT a Factor Affecting Sample

question 92

Multiple Choice

Which of the following is NOT a factor affecting sample size for confirming accounts receivable?

• A) type of confirmation
• B) tolerable misstatement
• C) control risk
• D) assessed detection risk

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year's time, such as cash, inventory, and receivables.

Current Liabilities

Short-term financial obligations that a company owes and is expected to pay within one year or its operational cycle, whichever is longer.

Compensating Balance

A minimum bank account balance that a borrower must maintain as a condition for obtaining a loan.

Interest Charges

The cost paid by a borrower for the use of borrowed money, or paid on a deposit or investment.