Day: September 29, 2026

Accounting Multiple Choice Question – 29 September 2026

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The following statement applies to the use of the positive or negative method of direct confirmation of receivables.

For this statement, select whether it applies to a situation where the positive method should be used, to a situation where the negative method could be used, it depends on the size of the business, or it should be referred to a more senior auditor.

  • There is no reason to believe that respondents will disregard the requests.

Select ONE answer:

  1. Depends on the size of the business
  2. Consult a senior colleague
  3. Positive method
  4. Negative method

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – The negative method of direct confirmation of receivables (i.e., only receiving responses by exception) could be used when a substantial number of misstatements is not expected and there is no need to believe that respondents will disregard these requests. In other circumstances the positive method should be used.

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