The Primary Consideration When Planning to Confirm Accounts Receivable Before

question 54

Multiple Choice

The primary consideration when planning to confirm accounts receivable before the balance sheet date is the ________.

• A)type of confirmation to be used
• B)client's internal control over transactions affecting receivables
• C)availability of staff auditors
• D)number of customer accounts

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, representing the company's bottom line.

Contingent Liabilities

Contingent liabilities are potential liabilities that may arise depending on the outcome of a future event.

Natural Disasters

Severe and sudden natural events caused by environmental factors that can result in substantial damage and pose significant risks to life, property, and economic stability.

Future Events

Prospective occurrences or situations that have not yet happened but may affect an entity's operations or financial performance in subsequent periods.