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)Evaluating the adequacy of the provision for doubtful debts
• B)Testing the accounting classification of sales transactions
• C)Testing the mathematical accuracy of the cash receipts ledger
• D)None of the above

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Definitions:

Circum-

A prefix in English denoting around, about, or surrounding something.

Epi-

Refers to being above, over, or on top of something, often used as a prefix in medical and biological terms to denote a higher position or an outer layer.

Tachy-

A prefix meaning "fast" or "swift," used in medical terminology to denote an abnormally rapid state, such as in "tachycardia" for rapid heartbeat.

Pan-

A prefix meaning "all" or "every," indicating inclusiveness or a wide scope in various fields.