An Error That Occurs Because of Chance Is Called

question 9

Multiple Choice

An error that occurs because of chance is called:

• A)nonsampling error
• B)sampling error
• C)mean error
• D)probability error

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Definitions:

Liquidity of Receivables

The ease with which accounts receivable can be converted into cash, reflecting the company's efficiency in managing credit sales.

Accounts Receivable

Financial obligations that clients have towards a company for goods or services delivered but still awaiting payment.

Bank Reconciliation

The process of comparing and adjusting an entity’s accounting records with the bank statements to ensure accuracy and consistency.

Monthly Basis

A regular interval or frequency of events or assessments occurring once every month.