An Auditor Discovered That a Client's Accounts Receivable Turnover Is

question 16

Multiple Choice

An auditor discovered that a client's accounts receivable turnover is substantially lower for the current year than for the prior year.This may indicate that:

• A)Obsolete inventory has not yet been reduced to fair market value.
• B)There was an improper cutoff of sales at the end of the year.
• C)An unusually large receivable was written off near the end of the year.
• D)The aging of accounts receivable was improperly performed in both years.

---

Definitions:

RBCs

Short for red blood cells, these are the cells in the blood that carry oxygen from the lungs to the body's tissues and return carbon dioxide from the tissues back to the lungs.

Erythropoietin

A hormone produced by the kidneys that stimulates the production of red blood cells in the bone marrow, often used in medical treatments for anemia.

Hormone

A chemical substance produced by glands in the body that regulates and controls the activity of certain cells or organs.

Blood Platelets

Small cell fragments in the blood that are crucial for blood clotting and help in healing wounds.