Accounting Multiple Choice Question – 13 August 2026

Which ONE of the following is the reason why the positive method of confirming receivables balances with customers is generally preferred?

Select ONE answer:

1. It is carried out in the auditor’s name
2. It only requires the customer to reply if he disagrees with the balance
3. It requires the customer to reply giving or confirming or disagreeing with the balance
4. It requires replies to be sent to the client

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – The fact that a positive confirmation requires the customer to reply to confirm or deny the balance (or to reply stating the balance) is the reason why this method is generally preferred over a negative confirmation. A negative confirmation only requires a reply if the balance is not agreed, which provides poorer-quality evidence because, if there is no reply, the auditor cannot be sure whether the customer has simply ignored the letter or has even received it. The answer is not option 1, as negative confirmations are also sent in the auditor’s name. Option 2 describes a negative confirmation and is therefore not correct. Option 4 does not apply to any type of confirmation.
4. Not correct

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