Accounts Receivable Need Not Be Confirmed If They Are Immaterial

question 69

True/False

Accounts receivable need not be confirmed if they are immaterial to the financial statements.

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Definitions:

Journal Entry

A record in accounting journals that represents a business transaction and includes details like date, amounts, and accounts affected.

Semiannual Interest Payment

A type of interest payment made twice a year on bonds or other fixed-income securities.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts within the financial statements.

Trading Securities

Financial instruments held by a firm for the purpose of short-term profit through trading on a stock exchange.