Once a CPA Has Determined That Accounts Receivable Has Increased

Multiple Choice

Once a CPA has determined that accounts receivable has increased because of slow collection in a "tight money" environment, the CPA would be likely to:

A) increase the balance in the allowance for bad debts account.
B) review the going concern ramifications.
C) require the entity to tighten its credit policy.
D) expand tests regarding the collectability of receivables.