When Trade Receivables Is a Significant Account in an Entity's

question 39

True/False

When trade receivables is a significant account in an entity's balance sheet,the two audit assertions that are considered most important are existence and valuation and allocation.

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Definitions:

Patient-Visits

The number of occasions when patients receive care from healthcare facilities or providers.

Static Planning Budget

A budget based on a fixed level of activity and does not change in response to variations in the level of actual activity.

Revenue Variance

Variation between the projected revenue and the actual revenue earned by a business.

Spending Variances

Differences between the budgeted or standard cost of costs and the actual costs incurred, often analyzed in terms of overhead and materials spending.