The Positive (As Opposed to the Negative) Form of Receivables

question 109

Multiple Choice

The positive (as opposed to the negative) form of receivables confirmation may be preferred when

• A) internal control surrounding accounts receivable is considered to be effective.
• B) there is reason to believe that a substantial number of accounts may be in dispute.
• C) a large number of small balances are involved.
• D) the auditor believes that the recipients of the confirmations will give the requests adequate consideration.

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Definitions:

Conservatives

A political ideology emphasizing the value of traditional institutions and practices, limited government, and, often, a free-market economy.

Socialists

Individuals or groups advocating for a political and economic system where production, distribution, and exchange are owned or regulated by the community as a whole.

Federalists

A political group that supported the ratification of the Constitution and favored a strong national government.

Dred Scott

An African American man whose legal fight for freedom led to a Supreme Court ruling that escalated tensions leading to the American Civil War.