When Trade Receivables Is a Significant Account in an Entity's

question 39

True/False

When trade receivables is a significant account in an entity's balance sheet,the two audit assertions that are considered most important are existence and valuation and allocation.

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Definitions:

Demand Decrease

A reduction in the quantity of a product or service that consumers are willing and able to purchase at a given price.

Compounded Quarterly

Interest calculated and added to the principal four times a year.

Purchase Contract

A legal agreement between a buyer and a seller detailing the terms and conditions of a purchase.

Return

The profit or loss generated from an investment over a certain period of time.