Question

Which accounts should be confirmed with outside sources? Briefly describe from whom they should be confirmed and the information that should be confirmed.

a) Trade Accounts Receivable - Confirmations should be obtained from customers, verifying the accuracy of outstanding balances and payment terms.
b) Inventories - Confirmations should be obtained from suppliers, validating the accuracy of quantities and valuation of goods on hand.
c) Property, Plant, and Equipment - Confirmations should be obtained from appraisers to verify the fair market value of tangible assets.
d) Accrued Liabilities - Confirmations should be obtained from creditors to verify the accuracy of outstanding obligations and terms of payment.

Answer 1

Trade Accounts Receivable, Inventories, Property, Plant, and Equipment, and Accrued Liabilities should be confirmed with outside sources to verify various information relating to the accounts.

Step-by-step explanation:

Accounts that should be confirmed with outside sources include:

1. Trade Accounts Receivable: Confirmations should be obtained from customers, verifying the accuracy of outstanding balances and payment terms.
2. Inventories: Confirmations should be obtained from suppliers, validating the accuracy of quantities and valuation of goods on hand.
3. Property, Plant, and Equipment: Confirmations should be obtained from appraisers to verify the fair market value of tangible assets.
4. Accrued Liabilities: Confirmations should be obtained from creditors to verify the accuracy of outstanding obligations and terms of payment.