CAS 530 Has a Very Specific Definition of Sampling

question 2

Multiple Choice

CAS 530 has a very specific definition of sampling.Assuming that each item (described as a sampling unit) in the populations below could be selected as part of the sample,which of the following illustrates the other part of the CAS 530 definition of sampling?

• A)looking at 50 sales invoices from the current population of 100 000
• B)recalculating interest calculations for notes payable
• C)estimating the gross profit by product for all company products
• D)inspecting all legal invoices for potential contingent liabilities

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Definitions:

Investing Section

A part of the statement of cash flows that reports the purchase and sale of long-term investments and property, plant, and equipment, reflecting how the company invests its cash.

Financing Section

Part of the cash flow statement that records cash activities related to funding the company, such as obtaining loans or issuing stock.

Statement of Cash Flows

A financial statement summarizing the total cash earnings from a company's operational activities and investments, alongside the expenses and investments paid out over a specific time frame.

Accounting Equation

A fundamental principle of accounting stating that assets equal liabilities plus owners' equity (Assets = Liabilities + Equity).