Which of the Following Statements Related to Tickler Files Is

question 94

Multiple Choice

Which of the following statements related to tickler files is false?

• A) A tickler file is reviewed on a regular basis for items that do not clear the file on a timely basis.
• B) A tickler file can consist of documents or computer records.
• C) A tickler file addresses the control goal of update accuracy.
• D) A tickler file addresses the control goal of input completeness.

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Definitions:

Bad Debts Expense

Bad debts expense represents the loss that a company anticipates or realizes from customers who are unable to pay their outstanding balances.

Uncollectible Accounts

Refers to receivables that a business has determined are unlikely to be collected due to customer default.

Aging

A method used in accounting to categorize a company's accounts receivable according to the duration of time an invoice has been outstanding.

Allowance Account

An account used to reduce the carrying amount of accounts receivable or loans to their net realizable value, reflecting expected losses due to uncollectibility.