In a positive receivables circularisation, how does a customer respond?
Answer and explanation
Correct answer: C. The customer replies in every case
- Step 1: Positive and negative requests differ in what is asked of the customer.
- Step 2: A positive request asks for a reply whether or not the balance agrees.
Answer
The customer replies in every case.
Why not the others: That describes a negative confirmation, where a reply comes only on disagreement. A confirmation is not limited to debts already paid. A positive request asks the customer to confirm the stated balance, not to supply its own records.
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