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Sveta_85 [38]
1 year ago
13

Distinguish between positive and negative confirmations. Under what circumstances would positive confirmations be more appropria

te than negative confirmations?
Business
1 answer:
Serhud [2]1 year ago
7 0

Negative confirmation is more frequently employed when the records of the person or business are usually thought to be quite accurate.

<h3>What is the difference between negative and positive confirmations?</h3>

Only when the customer disagrees with the amount owed to the client is a negative confirmation requested. When an account has substantial individual balances or when errors are anticipated due to a high control risk, positive confirmations are typically used.

Negative confirmation is more frequently employed when the records of the person or business are usually thought to be quite accurate. The corporation that receives a negative confirmation is typically thought to have strict internal policies and business procedures. As a result, since auditors typically only need to send out one letter, negative confirmation is far less expensive and time-consuming for them.

Positive confirmation requests, on the other hand, are more complicated since financial documents must be provided, even if the information in the original letter was accurate. Additionally, if there are doubts about the accuracy of the company's books, positive confirmation requests are more likely to be used.

However, because it is more precise and makes sure that everyone is on the same page—or has the same financial information—a positive confirmation letter is more typical in complex transactions. For instance, auditors in lending employ affirmative confirmations from banks and businesses to determine the precise amount of a loan.

Because it is a specific request that the recipient has responded to, a positive confirmation typically represents the financial information better than a negative confirmation. A positive confirmation is tangible proof that the information was confirmed in the event of a disagreement.

To learn more about negative and positive confirmations refer to:

brainly.com/question/15908185

#SPJ4

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At the end of year 1, Rome Inc. held debt securities classified as available-for-sale securities. The securities were carried at
KiRa [710]

Answer:

The historical cost of the debt securities available for sale was $69,670.

Explanation:

Market value of the securities = $57,320

Cumulative unrealized Loss = $12,350

Historical cost of the securities held for sale = Market Value of the Securites + Cummulative unrealized losses

Historical cost of the securities held for sale = $57,320 + $12,350

Historical cost of the securities held for sale = $69,670

Securities Held for sale are recorded at the fairmarket value and its losses are accumulated. By adding cummulative losses of security to Maerket value of security we can calculate historical cost of the security.

8 0
3 years ago
Once you purchase a house. It typically appreciates in value. Appreciation is
Hitman42 [59]

Answer:

A.

Explanation:

Appreciation means that something increases in value therefore it is A.

7 0
3 years ago
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a join
Marizza181 [45]

Answer: The correct answer is "B. lower".

Explanation: The insurance premium is one of the central elements of the contract since it is the price that the insured pays for the coverage he receives. Its value will depend on the type of risk insured and is always fixed in advance by the insurance company. It must be sufficient for the insurer to face the insured risk, calculating that not all the insured will need the coverage, that is, statistically, there is a probability that it will happen or not.

The premium is lower in a survivorship life policy as compared to the premium in a joint life policy.

3 0
3 years ago
At which stage of the business cycle would the economy be at when GDP begins to rise and the unemployment rate begins to fall?
Lyrx [107]

Answer: A - peak

Explanation:

Just took the test the other answer is wrong!!!

4 0
3 years ago
The folowing information applies to the questions displayed below] Hoboken Industries currently manufactures 48,000 units of par
kap26 [50]

Answer:

1. 72000 units.

2. $19.

Explanation:

Solution:

Part 1:

Let's Sort out the data given:

Monthly Cost Fixed = $240,000

Fixed Cost unavoidable = 40% x 240,000

Fixed Cost unavoidable = $96,000

Now,

Avoidable Fixed Cost will be = $240,000 - $96,000

Avoidable Fixed Cost will be = $144,000

It means that, if the industries obtain products from the outside supplier, it will save or avoid fixed cost of $144,000 per month.

Now, we also given that,

Variable Production Cost = $16 per unit

Purchase Price per unit (Outsider) = $18 per unit

Increment in Price per unit = $18 - $16 = $2

Hence,

It will cost the industry an extra of $2 per unit.

Now, we can calculate the required monthly usage at which it will be indifferent between purchasing and making part MR24.

Break Even Monthly Usage  = Avoidable Fixed Cost/ Incremental Price per unit.

Break Even Monthly Usage = $144,000/$2

Break Even Monthly Usage = 72000 units.

Hence, Monthly usage at which it will be indifferent between purchasing and making part MR24 = 72000 units.

Part 2:

Monthly usage as given = 48000 units on which it can avoid the fixed cost of $144,000

Avoidable Monthly fixed cost = $144,000

So, now, we can calculate the avoidable fixed cost per unit as well.

Avoidable Fixed Cost Per unit = $144,000/48000

Avoidable Fixed Cost Per unit = $3

We also know,

Variable Production cost per unit = $16

Avoidable Fixed cost per unit = $3

So, we can see the maximum purchase price in order to avoid monthly fixed cost.

Maximum Purchase price per unit = $16 + $3 =$19

It means, $19 is the maximum purchase price, if the industry is approaching the outsider for the monthly usage of 48000 units. It will benefit if the price is less than $19.

8 0
3 years ago
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