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:

Money Supply Curve

A graphical representation showing the relationship between the quantity of money in an economy and the level of interest rates.

Equilibrium Interest Rate

The interest rate at which the supply of funds (savings) equals the demand for funds (loans), resulting in market equilibrium.

Quantity of Money

The total amount of money in circulation or in existence within a specific economy.

Monetary Policy

Actions of a central bank, currency board, or other regulatory authorities that determine the size and rate of growth of the money supply, which in turn affects interest rates.