An auditor is required to confirm accounts receivable if the accounts receivable balances are: Older than one year Material to the financial statements Smaller than esxpected Subject to valuation estimates

An auditor is required to confirm accounts receivable if the accounts receivable balances are: Older than one year Material to the financial statements Smaller than esxpected Subject to valuation estimates

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 20GI

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Question 39

An auditor is required to confirm accounts receivable if the accounts receivable balances are:

		Older than one year
		Material to the financial statements
		Smaller than esxpected
		Subject to valuation estimates

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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