Alternative Procedures That Would Provide Evidence of the Existence of Receivables

question 25

Multiple Choice

Alternative procedures that would provide evidence of the existence of receivables would include which of the following?

• A)physical observation of customer facilities.
• B)review of subsequent collections.
• C)analysis of the aged trial balance.
• D)a confirmation to the client management for customer accounts.

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Definitions:

Current Ratio

A financial metric evaluating a firm's capacity to settle debts due within a year by dividing its current assets by its current liabilities.

Federal Unemployment Tax

A tax imposed on employers to fund state workforce agencies.

Double-Declining-Balance

An accelerated depreciation method that doubles the rate of depreciation of an asset's value compared to the straight-line method.

Depreciation Rate

The percentage at which an asset's value decreases over time due to use, wear, or obsolescence.