The Accountant for a Large U

question 25

Essay

The accountant for a large U.S. company is interested in finding the probability that an account will have an incorrect balance due to being overstated or being understated. To find this probability, which probability rule is she likely to use?

---

Definitions:

Account

A record used to keep track of and manage financial transactions within a financial institution, company, or another entity.

Liability

Financial obligations or debts that an individual or organization owes to others, which must be settled over time.

Savings Account

A bank account that earns interest and is typically used by account holders for saving money over a period of time.

Rate Of Return

A measure used to evaluate the financial performance of an investment, calculating the gain or loss relative to the asset's initial cost.