Which of the Following Responses to an Accounts Receivable Confirmation

question 87

Multiple Choice

Which of the following responses to an accounts receivable confirmation at December 31 would cause an audit team the most concern?

• A)"This amount was paid on December 30^th."
• B)"We received this shipment on January 2^nd."
• C)"These goods were returned for credit on November 15^th."
• D)"The balance does not reflect our sales discount for paying by January 5^th."

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Definitions:

Simple Rate of Return

A calculation that measures the gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Investment Project

A project in which funds are allotted with the aim of generating financial returns.

Overhauled

Describes a comprehensive inspection, dismantling, and reassembly of equipment or a system, often to restore it to optimal working condition.

New System

A term referring to the introduction or implementation of a novel set of procedures, technologies, or methodologies in an organizational setting.