The Primary Consideration When Planning Whether to Send Confirmations of Accounts

question 80

Multiple Choice

The primary consideration when planning whether to send confirmations of accounts receivable before the balance sheet date is the

• A) Type of confirmation to be used.
• B) Client's internal control over transactions affecting receivables.
• C) Availability of staff auditors.
• D) Number of customer accounts.

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Definitions:

General Journal Entry

A general journal entry is a record of financial transactions that includes details such as date, accounts impacted, amounts, and a brief description of the transaction.

Petty Cash Fund

A petty cash fund is a small amount of cash on hand used for paying expenses too small to merit writing a check or using a credit card.

Reimburse

To pay back or compensate someone for expenses they have incurred, typically related to business costs or travel expenses.

Voucher System

A business's set of procedures for authorizing and recording liabilities and cash disbursements.