The Most Effective Audit Procedure for Determining If an Account

question 77

Multiple Choice

The most effective audit procedure for determining if an account receivable will be collected is ________.

• A)examination of cash collections subsequent to the year-end
• B)examination of sales invoice(s)
• C)confirmation of the account
• D)the review of the customer's file to determine previous collection experience and to check sales orders from the customer for evidence credit approval

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Definitions:

ABS Modulation Cycle Rates

The frequency at which an Anti-lock Braking System (ABS) activates and releases brake pressure to prevent wheel lockup during braking.

Pneumatic Brake Systems

Brake systems that use compressed air to create the braking force applied to stop the vehicle.

Power Line Carrier (PLC)

Term used to describe communication transactions delivered through the auxiliary (blue) power line in a seven-wire tractor-trailer electrical connection. Signals are converted to radio frequencies for the transaction and subsequently decoded by the receiver ECU. The means used to enable trailer ABS to communicate with the tractor electronics.