Ranger,CPA Used Nonstatistical Sampling to Examine the Accounts Receivable Balances

question 30

Multiple Choice

Ranger,CPA used nonstatistical sampling to examine the accounts receivable balances of Cowboy Inc.,He audited a sample of 150 items and found an audited value of $5,000 less than the recorded value of $25,000.The entire account balance contained 2,000 items and had a total recorded value of $350,000.Using nonstatistical methods and assuming that Ranger used the ratio of audited value to recorded value to estimate the account balance,the estimated total account balance is

• A) $345,000.
• B) $330,000.
• C) $295,000.
• D) $280,000.

---

Definitions:

Incentivize

To motivate or encourage someone by providing a reward or incentive.

Fruit Pickers

Laborers who are employed in agriculture to manually harvest fruits from plants and trees.

Compensation

Payment or rewards given to employees for their work or services.

Compensation Rate

The amount of money or benefits given to an employee in exchange for their work or service.