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

question 42

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?

• 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:

Apical Meristem

Growth regions in plants that are found at the tips of roots and shoots, responsible for primary growth and the elongation of shoots and roots.

Lateral Buds

Buds located along the sides of a stem that have the potential to grow into branches or flowers.

Gravity Perception

The ability of an organism to sense the direction of gravity, enabling it to orient itself correctly in its environment, critical for plant root growth and animal movement.

Root Apical Meristem

The region at the tips of roots in plants where cells are continuously dividing, allowing roots to grow and extend into the soil.