The most important test for the existence/occurrence objective for accounts receivable is:
A) existence of the balances confirmed.
B) collectibility of the balances confirmed.
C) ownership of the balances confirmed.
D) internal control over balances confirmed.

Question

Quizplus · Accepted Answer

The most important test for the existence/occurrence objective for accounts receivable is the existence of the balances confirmed. This test confirms the existence of the balances and verifies that they are real and valid. Collectibility and ownership may be important objectives as well, but they are not the most important for determining the existence/occurrence of accounts receivable. Internal control over balances confirmed may be important for the reliability of the balances, but it is not directly related to the occurrence objective.

The Most Important Test for the Existence/occurrence Objective for Accounts