Day: September 30, 2026

Which ONE of the following is the most reliable evidence of the VALUATION of trade receivables?

Select ONE answer:

1. Analysis of after-date receipts
2. A comparison of current year-end total with previous year
3. Reconciliation of receivables ledger and receivables ledger control account
4. Reconstruction of receivables balance by tracing individual amounts invoiced to despatch notes

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 1

1. Correct – Whereas the other procedures described are helpful with respect to the valuation assertion, subsequent receipt of cash confirms absolutely that the balance was recoverable at the year end.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.