An Aged Trial Balance of Accounts Receivable Is Normally Used

question 21

Multiple Choice

An aged trial balance of accounts receivable is normally used by the auditor to

• A) Verify the existence of recorded receivables.
• B) Ensure that all accounts are promptly credited.
• C) Evaluate the results of tests of controls.
• D) Evaluate the provision for bad debts.

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Definitions:

One-Way ANOVA

A statistical test that assesses whether there are any statistically significant differences between the means of three or more independent (unrelated) groups.

F Statistic

A ratio used in the analysis of variance (ANOVA) to determine whether the means of several groups are equal.

ANOVA Table

A table used in analysis of variance that shows the sources of variability in the data and helps in determining whether there are significant differences between group means.

Pooled Standard Deviation

A method for estimating the standard deviation across two or more independent groups that assumes a common true standard deviation.