You were surprised to note that approximately 95% of returned positive accounts receivable confirmation requests indicated that the customers thought that they owed a larger balance than the amount that had been printed by your client on the confirmation.This might be explained by the fact that:
A)The cash receipts journal was closed before year-end.
B)The cash receipts journal was held open after year-end.
C)There are many unrecorded liabilities.
D)The sales journal was held open after year-end.

Question

Quizplus · Accepted Answer

If the cash receipts journal was held open after year-end, payments received from customers after the year-end might not have been recorded in the financial statements of the current year. This would lead to the financial statements showing a higher receivable balance than what the customers believe they owe, as they would have already made payments that were not accounted for.

You Were Surprised to Note That Approximately 95% of Returned