Accounts with Zero or Negative Year-End Balances Have No Chance

question 109

True/False

Accounts with zero or negative year-end balances have no chance of being included in a standard probability proportional to size (PPS) sample.

---

Definitions:

Corporations

Legal entities that are separate and distinct from their owners, who are shareholders, and have rights to enter into contracts, own assets, and be liable for debts.

Loans

Financial transactions where one party lends money to another with the expectation that it will be repaid, usually with interest, over a specified period.

Usurious Rate

An interest rate charged on a loan that exceeds the legal limit set by law.

Principal

The main party to a transaction or contract, responsible for its fulfilment.