In the Audit of Accounts Receivable,negative Confirmations Are Not Normally

question 37

Multiple Choice

In the audit of accounts receivable,negative confirmations are not normally used if ________.

• A)internal control is considered effective
• B)there are a large number of small balances
• C)customers can be expected to consider the confirmation properly
• D)account balances are in dispute

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Definitions:

Consumer Demand Curve

A graphical representation showing the quantity of a product that consumers are willing and able to purchase at various price levels.

Marginal Utility

The additional satisfaction or utility gained by consuming one more unit of a good or service.

Income Effect

The change in an individual's consumption resulting from a change in their real income, due to price changes or other factors.

Law of Demand

indicates the inverse relationship between the price of a good or service and the quantity demanded, with demand typically decreasing as prices increase, all else being constant.