Communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or incorrect is a:
A) bank confirmation.
B) positive confirmation.
C) negative confirmation.
D) management letter.

Question

Quizplus · Accepted Answer

This is a positive confirmation as it requires the debtor to respond confirming or denying the balance stated in the communication. Bank confirmation is specifically related to banking transactions, negative confirmation requests the debtor to respond only if there is a discrepancy, and management letter is an optional communication from the auditor to management discussing various issues.

Communication Addressed to the Debtor Requesting Him or Her to Confirm