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The Use of the Positive (As Opposed to the Negative)

Question 105

Multiple Choice

The use of the positive (as opposed to the negative) form of receivables confirmation is preferred when:


A) internal control surrounding accounts receivable is considered to be effective.
B) there is reason to believe a significant portion of the requests will be responded to.
C) a large number of small balances are involved.
D) there is reason to believe that a substantial number of accounts may be in dispute.

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