Which of the Following Is a Substantive Test of the Trade

question 9

Multiple Choice

Which of the following is a substantive test of the trade receivables balance that is always performed?

• A) testing the accounting classification of sales transactions
• B) testing the mathematical accuracy of the cash receipts ledger
• C) evaluating the adequacy of the provision for doubtful accounts
• D) none of the above

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Definitions:

GDP

Gross Domestic Product, a monetary measure of the market value of all final goods and services produced in a specific time period.

MPC

Marginal Propensity to Consume, the proportion of additional income that a consumer spends on purchasing goods and services, rather than saving.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period, indicating the size of its economy.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.