A Written Representation from an Entity's Management That, Among Other

question 19

Multiple Choice

A written representation from an entity's management that, among other matters, acknowledges responsibility for the fair presentation of financial statements should normally be signed by the:

• A)chief executive officer and the chief financial officer.
• B)chief financial officer and the chairman of the board of directors.
• C)chairman of the audit committee of the board of directors.
• D)chief executive officer, the chairman of the board of directors and the entity's lawyer.

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Definitions:

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services based on the holder's promise to pay for them.

Journal Entry

A record in the books of accounts that shows a business transaction and its effect on the company's finances.

Percent of Receivables Method

An accounting method used to estimate the amount of accounts receivable that will not be collected by calculating a percentage of receivables deemed uncollectible.

Uncollectible Accounts Receivable

Accounts from customers that are considered unrecoverable, leading to a write-off as a bad debt expense.