Which of the Following Would Indicate the Need to Use

question 13

Multiple Choice

Which of the following would indicate the need to use positive accounts receivable confirmation requests?

• A)A large population consisting of small balances.
• B)Good internal control over accounts receivable.
• C)Most accounts are with large reputable companies.
• D)A large number of accounts receivable are in dispute.

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Definitions:

Opportunity Cost

The consequence in terms of lost benefits from not selecting the immediate next preferable option when making a choice.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Terms of Trade

The ratio at which a country's exports are exchanged for imports, influencing the level of a country's economic health and prosperity.

World Price

The price at which a good is traded on the world market; determined by the world demand and world supply for the good.