According to the Text, Why Is the Accounts Receivable Turnover

question 8

Multiple Choice

According to the text, why is the accounts receivable turnover ratio widely used in analyzing revenue-related fraud?

• A) Significant amounts of fictitious revenues and receivables will almost always affect this ratio except in rare cases.
• B) Adding fictitious receivables will generally decrease the number of days it takes to collect receivables.
• C) If the ratio generally exceeds 1, recording fictitious sales will significantly increase the ratio, making it easy to spot fraud.
• D) Since the ratio should ideally equal 1, any deviation from this number is easy to detect.

Understand how to use the CONFIDENCE.NORM function in Excel to calculate confidence intervals for population means.

Grasp the concept of unbiased estimators and identify the unbiased estimator of population proportion.

Calculate margins of error for confidence intervals given various population and sample conditions.

Differentiate between t-distributions and the standard normal distribution.

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Definitions:

Internal Nares

Openings located inside the nose that connect the nasal cavity to the throat, allowing for the passage of air.

External Nares

The nostrils; the external openings of the nasal cavity where air enters and exits the nose.

Epiglottis

A leaf-shaped flap of cartilage located behind the tongue, at the top of the larynx, which prevents food and drink from entering the windpipe during swallowing.

Nasopharynx

The upper part of the throat located behind the nose, connecting the nasal cavity to the throat.