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

question 106

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 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:

Investment Component

A part of economic activity related to spending on goods and services not for immediate consumption but for future benefit.

Government Purchases Component

The part of gross domestic product (GDP) that includes spending by all levels of government on goods and services.

Social Security Benefits

Government payments made to eligible individuals, such as retirees or disabled workers, as part of a social insurance program.

Investment Component

The portion of GDP or economic output that is attributed to investment in physical assets, like buildings, equipment, and inventory.