The Negative Request Form of Accounts Receivable Confirmation Is Useful

question 99

Multiple Choice

The negative request form of accounts receivable confirmation is useful particularly when the: Assessed level of risk Of material
Misstatement relating Number of small Proper consideration To receivables is is balances by the recipient is
a) Low Many Likely
b) Low Few Unlikely
c) High Few Likely
d) High Many Likely

• A) Option A
• B) Option B
• C) Option C
• D) Option D
• E) No Option

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Definitions:

Common-Size Statements

Financial statements that are expressed as a percentage of a certain figure, allowing for easier comparison across time periods and companies by standardizing the data.

Percentage Of Change

A mathematical calculation used to determine the percentage increase or decrease of a value over a period of time.

Quick Assets

Those assets— mainly cash, accounts receivable, and notes receivable—that can be easily turned into cash.

Current Liabilities

Obligations that will come due within one year or within the operating cycle, whichever is longer.