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

Multiple Choice

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

A) internal control surrounding accounts receivable is considered to be ineffective.
B) there is reason to believe that a substantial number of accounts may be in dispute.
C) a large number of small balances are involved.
D) accounts receivable consists of current balances only.