The Accounts Receivable Balance-Related Audit Objective Net Realizable Value Is

question 60

True/False

The accounts receivable balance-related audit objective net realizable value is not affected by assessed control risk for sales or cash receipts.

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Definitions:

Instinct Theory

A view that explains human behavior as motivated by automatic, involuntary, and unlearned responses.

Homeostasis

The ability of a living organism to regulate its internal environment to maintain a stable, constant condition despite external changes.

Drive-Reduction Theory

The idea that a physiological need creates an aroused tension state (a drive) that motivates an organism to satisfy the need.

Maintain Homeostasis

The process by which living organisms regulate their internal environment to stabilize health and functioning, despite external changes.