The 3,000 Accounts Receivable of DEF Company Have a Total

question 26

Multiple Choice

The 3,000 accounts receivable of DEF Company have a total book value of $60,000.Bob Smith,CPA,has selected and audited a sample of 100 accounts with a total book value of $2,100.Using the difference estimation technique,Smith has properly estimated a projected misstatement of a $9,000 overstatement for the entire population.The estimated total audited value of the population is:

• A)$51,000
• B)$58,000
• C)$60,000
• D)$69,000

---

Definitions:

Economic Expectations

Predictions or outlooks regarding economic conditions, such as growth, inflation, and employment, which can influence financial and business decisions.

Discretionary Responsibility

Refers to the voluntary commitment of an organization to contribute to the well-being of its community, environment, and society beyond its legal obligations.

Socially Responsible Corporate Behaviour

Practices and policies adopted by businesses that aim to positively impact society and the environment, beyond what is legally required.

Social Well-Being

The state of experiencing positive relationships and societal connections, contributing to overall health and happiness.