An Auditor's Analysis of Specific Accounts Receivable and Recent Trends

question 4

Multiple Choice

An auditor's analysis of specific accounts receivable and recent trends in bad debt losses as a percent of sales may cause the auditor to conclude that the allowance for doubtful accounts should be between $130,000 and $160,000.If management's recorded estimate falls within that range,the auditor ordinarily would conclude that the recorded amount is reasonable,and no difference would be aggregated.If management's recorded estimate is $110,000,how much would be aggregated as a misstatement?

• A)$0.
• B)$30,000.
• C)$20,000.
• D)$110,000.

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Definitions:

Anima

In Jung’s version of psychoanalysis, the idea of the typical female as held in the mind of a male.

Ideal Mate

A concept defining an individual's perception of the perfect partner, encompassing attributes such as personality traits, physical characteristics, and values.

Neurotic Need

A psychological term referring to the unconscious desires and strategies that individuals use to manage anxiety and protect their self-esteem.

Online Dating

The process of using specific websites or applications on the internet to find romantic or sexual partners.