The Accounting Department Reports That the Balance of Accounts Receivable

question 6

Multiple Choice

The accounting department reports that the balance of accounts receivable is $210,000. You are willing to accept that balance if audit sampling suggests it is within $15,000 of the actual balance. Using a classical variables sampling plan, you compute a 95% confidence interval of $208,000 to $225,000. You would therefore:

• A)not be able to determine the acceptability of the receivable balance.
• B)accept the balance but with a lower level of confidence.
• C)take a larger sample before totally rejecting the balance and requiring adjustments.
• D)accept the $210,000 balance because the confidence interval is within the materiality limits.

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Definitions:

Igf2r

A gene that encodes the insulin-like growth factor 2 receptor, involved in various cellular processes including growth, development, and apoptosis.

Parental Fitness

The genetic contribution of parents to the next generation's gene pool, usually measured by the number of offspring that survive to reproductive age.

Extrinsic Mortality

The death rate from external factors, outside the organism's control, such as predation or accidents, as opposed to intrinsic factors like aging.

Mutations

Permanent alterations in the DNA sequence of an organism's genome, which can lead to diversity within species and potentially new species over time.