A Substantive Test for Accounts Receivable Could Include Verifying Accounts

question 10

True/False

A substantive test for accounts receivable could include verifying accounts receivable and the related allowance account is to trace the current period's opening balancto the closing audited balancin the previous year's working papers.

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Definitions:

Unadjusted Trial Balance

A list of all accounts and their balances at a particular date before any adjusting entries are made, used to check the accuracy of debits and credits.

Income Statement Columns

Sections in an income statement that organize and display revenue, expenses, and net income over a specific period.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to verify the equality of debits and credits.