An IRS Auditor Randomly Selects 3 Tax Returns from 55

question 124

Multiple Choice

An IRS auditor randomly selects 3 tax returns from 55 returns of which 10 contain errors. What is the probability that she selects none of those containing errors?

• A)0.5409
• B)0.5477
• C)0.0046
• D)0.006

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Definitions:

Journal Entry

A record in accounting that logs every financial transaction a business makes, showing which accounts are affected and by how much.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing wear and tear or obsolescence.