An Auditor Discovered That a Client's Accounts Receivable Turnover Is

question 16

Multiple Choice

An auditor discovered that a client's accounts receivable turnover is substantially lower for the current year than for the prior year.This may indicate that:

• A)Obsolete inventory has not yet been reduced to fair market value.
• B)There was an improper cutoff of sales at the end of the year.
• C)An unusually large receivable was written off near the end of the year.
• D)The aging of accounts receivable was improperly performed in both years.

---

Definitions:

Tachypnea

Increased rate of respiration.

Bradypnea

An abnormally slow rate of respiration.

Dyspnea

A medical term for difficulty in breathing or shortness of breath, a symptom of various underlying health conditions.

Auscultating

The act of listening to the internal sounds of the body, typically using a stethoscope, as part of a medical examination.