In Which of the Following Circumstances Would the Use of the Negative

question 87

Multiple Choice

In which of the following circumstances would the use of the negative form of accounts receivable confirmation most likely be justified?

• A)A substantial number of accounts may be in dispute and the accounts receivable balance arises from sales to a few major customers.
• B)A substantial number of accounts may be in dispute and the accounts receivable balance arises from sales to many customers with small balances.
• C)A small number of accounts may be in dispute and the accounts receivable balance arises from sales to a few major customers.
• D)A small number of accounts may be in dispute and the accounts receivable balance arises from sales to many customers with small balances.

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Definitions:

CICA Handbook

The Canadian Institute of Chartered Accountants Handbook, which provides certified accounting standards and guidelines in Canada.

NFP's Operations

Relates to the activities and endeavors undertaken by a Not-for-Profit Organization to fulfill its mission and objectives.

Reporting Objectives

The goals or purposes behind financial reporting, typically involving providing useful information to stakeholders for decision making.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use.