A "Right-To-Audit" Clause

question 33

Multiple Choice

A "right-to-audit" clause:

• A)provide rights to the vendor to audit the company's books at any time.
• B)gives an external auditor the right to audit the company's books.
• C)is considered in civil court as an invasion of privacy.
• D)alerts vendors that the company reserves the right to audit the vendor's books at any time.

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Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company collects its average accounts receivable balance in a given period.

Year 2

Designates the second fiscal or calendar year in a sequence of years, crucial for tracking progress, budgets, and planning in various contexts.

Average Collection Period

The average amount of time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Year 2

Refers to the second year of a project, company's fiscal year, or any specified time period.