Nonprobabilistic Selection Methods Are Not Based on Mathematical Probabilities; Therefore

question 45

Multiple Choice

Nonprobabilistic selection methods are not based on mathematical probabilities; therefore:

• A)the extent to which a sample is representative of the population may be difficult to determine.
• B)they are discouraged by the AICPA.
• C)they are not allowed by the Statements on Auditing Standards.
• D)they are not as effective as statistical sampling.

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Definitions:

Additional Paid-In Capital

The amount of money paid by investors for shares of stock above their par value; it is a measure of the excess investment made by shareholders.

Journal Entries

Recorded business transactions in the accounting records of a company, following the double-entry bookkeeping principle.

Note Payable

A written agreement whereby the borrower agrees to pay a certain sum of money to the lender at a future date.

Land Costing

The total expense incurred to acquire land, including purchase price, closing costs, and any other costs to prepare the land for use.