Communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or incorrect is a
A) representation letter.
B) negative confirmation.
C) bank confirmation.
D) positive confirmation.

Question

Quizplus · Accepted Answer

A positive confirmation is a communication addressed to the debtor requesting him or her to confirm whether the balance as stated on the communication is correct or not. A bank confirmation is a similar but specific type of positive confirmation used when confirming the balances of a bank account. A representation letter is a written statement from management or the owner of a business confirming certain information or financial data. A negative confirmation is a communication addressed to the debtor requesting him or her to respond only if the balance as stated on the communication is incorrect. Therefore, the best choice is D) positive confirmation.

Communication Addressed to the Debtor Requesting Him or Her to Confirm