Once a CPA Has Determined That Accounts Receivable Have Increased

question 36

Multiple Choice

Once a CPA has determined that accounts receivable have increased due to slow collections in a "tight money" environment,the CPA would be likely to:

• A)Increase the balance in the allowance for bad debts accounts.
• B)Review the going concern ramifications.
• C)Review the credit and collection policy.
• D)Expand tests of collectibility.

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Definitions:

Job Security

The probability that an individual will retain their employment position without the risk of becoming unemployed.

Organizational Culture

The system of shared beliefs, values, customs, behaviors, and artifacts that the members of an organization use to cope with their world and with one another.

Employee Preferences

The various desires or priorities of employees, such as work conditions, benefits, and job roles.

Clan Cultures

Describes organizational cultures emphasizing family-like values, where loyalty, tradition, and personal relationships are paramount.