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In Response to an Accounts Receivable Confirmation, a Customer Indicated

Question 125

Multiple Choice

In response to an accounts receivable confirmation, a customer indicated that the invoice listed on the confirmation letter had been paid two months earlier. This may indicate that:


A) The receivable was selected for confirmation in error.
B) The customer is a bad credit risk.
C) The receivable should be written off.
D) Fraudulent activity has occurred.

Correct Answer:

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