Negative Confirmation of Accounts Receivable Is Less Effective Than Positive

question 5

Multiple Choice

Negative confirmation of accounts receivable is less effective than positive confirmation of accounts receivable because:

• A)a majority of recipients usually lacks the willingness to respond objectively.
• B)some recipients may report incorrect balances that require extensive follow up.
• C)the auditor cannot infer that all nonrespondents have verified their account information.
• D)negative confirmations do not produce evidential matter that is statistically quantifiable.

Appreciate the mutual benefits of trade and its exceptions.

Identify the causes and consequences of market failure.

Understand the premise of economic systems such as communism in resource allocation.

Analyze the rationality behind consumer choices and the concept of opportunity cost.

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Definitions:

Household Rules

Guidelines set by individuals or families to manage behavior and responsibilities within the home environment.

Insecure Attachment

A type of emotional bond formed in early childhood that can lead to difficulties in relationships due to lack of confidence in the availability of close others.

Egocentrism

In developmental psychology, a cognitive characteristic where an individual is unable to differentiate between their own perspective and that of another person, often seen in young children.

Accommodation

The cognitive process of revising existing cognitive schemas, perceptions, and understanding to integrate new information.