Homer and Moe,PC Are Auditing the Financial Statements of Lyoncraft,Inc

question 70

Multiple Choice

Homer and Moe,PC are auditing the financial statements of Lyoncraft,Inc.and decide to confirm a sample of accounts receivable.This test is performed by Homer and Moe primarily to substantiate which of the following assertions?

• A)Existence of related party transactions.
• B)Existence of accounts receivable.
• C)Obligation of debt.
• D)Cutoff of the allowance for bad debt.

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Definitions:

Electrodes

Conductive elements used to establish an electrical connection with the nonmetallic part of a circuit, often found in medical and industrial applications.

Examining Table

A table designed for patients to lie or sit on during a medical examination or treatment procedure.

ECG Test

A diagnostic tool that records the electrical activity of the heart and is used to detect heart problems.

Fowler's Position

A semi-sitting position used in medical settings where the patient is typically on their back at a 45-60 degree incline to facilitate breathing or for other therapeutic reasons.