Which of the Following Is the Principle "Weakness" of Using

question 31

Multiple Choice

Which of the following is the principle "weakness" of using negative confirmations for the tests of details of balances for accounts receivable?

• A)They can only be used for large balance accounts.
• B)They cannot not be used when account balances "bunch" around a mean value.
• C)Conclusions drawn from receiving no reply may not be correct.
• D)Response rates are generally too low to draw any conclusions.

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Definitions:

Surplus

The situation in which the quantity of a good or service supplied exceeds the quantity demanded at the current price; often occurs in markets where a price ceiling prevents the price from rising to its equilibrium level.

Market Price

The current price at which an asset or service can be bought or sold, determined by supply and demand.

Black Market

An illegal trading environment where goods or services are exchanged outside of government-sanctioned channels.

Price Controls

Government-imposed limits on the prices charged for goods and services, typically to control inflation or to ensure affordability.