Most tests of accounts receivable are based on what schedule, file, or listing?
A)Sales master file
B)Aged accounts receivable trial balance
C)Accounts receivable master file
D)Accounts receivable general ledger account

Question

Quizplus · Accepted Answer

The aged accounts receivable trial balance is the best choice for testing accounts receivable as it provides a schedule or listing of all accounts receivable balances categorized by age. This allows the auditor to assess the collectability of receivables and identify any potential risks or issues with the accounts receivable balances. The other options listed (sales master file, accounts receivable master file, and accounts receivable general ledger account) do not provide the same level of detail or analysis as the aged accounts receivable trial balance.

Most Tests of Accounts Receivable Are Based on What Schedule