Which of the Following Is Likely to Be Determined First

question 31

Multiple Choice

Which of the following is likely to be determined first when performing tests of details for accounts receivable?

• A)Recorded accounts receivable exist.
• B)Accounts receivable in the aged trial balance agree with related master file amounts, and the total is correctly added and agrees with the general ledger.
• C)Accounts receivable are owned.
• D)Existing accounts receivable are included.

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Definitions:

Misrepresentation

A false statement of fact made by one party to another, which, while not constituting a term of the contract, induces the other party to enter the contract.

Inducing

The act of persuading or leading someone to undertake a certain action, often with implications in legal contexts like contracts or torts.

Fraud in the Execution

A situation where a person is deceived into signing a document without understanding its nature, existence, or contents.

Innocent Misrepresentation

A false statement made by someone who believes it to be true, which induces another party to enter into a contract.