Which of the following accounts tends to be most predictable for purposes of analytical procedures?
A)Accounts receivable.
B)Travel and entertainment expense.
C)Interest expense.
D)Income taxes payable.

Question

Quizplus · Accepted Answer

Interest expense tends to be one of the more predictable accounts since it is usually based on fixed interest rates for loans and other debt obligations. Accounts receivable may fluctuate heavily depending on the company's sales and collection policies, while travel and entertainment expenses can vary widely based on management's discretion. Income taxes payable can also be affected by various factors, such as changes in tax laws or shifting income levels.

Which of the Following Accounts Tends to Be Most Predictable