Once a CPA Has Determined That Accounts Receivable Has Increased

question 78

Multiple Choice

Once a CPA has determined that accounts receivable has increased because of slow collection in a "tight money" environment, the CPA would be likely to:

• A)increase the balance in the allowance for bad debts account.
• B)review the going concern ramifications.
• C)require the entity to tighten its credit policy.
• D)expand tests regarding the collectability of receivables.

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Definitions:

Ability to See

A physiological function that allows organisms to interpret electromagnetic wavelengths from the environment, commonly known as vision.

Humans

Intelligent, bipedal species known for advanced communication, social structures, and ability to create and manipulate the environment.

Retinal System

The part of the eye responsible for converting light into neural signals, allowing for the perception of visual images.

Cone Vision

The visual perception enabled by cone cells in the retina of the eye, allowing for color vision and detailed vision in bright light conditions.