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The Use of the Positive (As Opposed to the Negative)form

Question 47

Multiple Choice

The use of the positive (as opposed to the negative) form of receivables confirmation is preferred when:


A) there is reason to believe a significant portion of the requests will receive responses.
B) internal control surrounding accounts receivable is considered to be effective.
C) there is reason to believe that a substantial number of accounts may be in dispute.
D) a large number of small balances are involved.

Correct Answer:

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