Confirmations yield evidence about existence and the gross valuation of a receivable balance.

Question

Quizplus · Accepted Answer

Confirmations are a method of obtaining direct evidence about the existence and valuation of a receivable balance by sending a written request to the debtor. The confirmation response provides objective evidence that the debtor acknowledges the debt and agrees with its amount. Therefore, confirmations support the existence and valuation of a receivable balance.

Confirmations Yield Evidence About Existence and the Gross Valuation of a Receivable