Which of the Following Is not True About the Confirmation

question 52

Multiple Choice

Which of the following is not true about the confirmation of accounts receivable?

• A)Confirmation requests should bear the auditors' return address.
• B)Confirmation requests should be signed by the auditors.
• C)Confirmation requests should be mailed directly by the auditors.
• D)Confirmation requests should include a return envelope addressed to the office of the auditors.

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Definitions:

Federal Funds Rate

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight.

Price Stability

An economic condition in which prices remain largely stable, without rapid inflation or deflation.

Maximum Employment

A situation in which all available labor resources are being used in the most economically efficient way, one of the goals of economic policy.

Quantity Theory of Money

This economic theory posits that the general price level of goods and services is directly proportional to the amount of money in circulation.