Bama's Accounts Receivable Were Recorded at $600,000

question 130

Multiple Choice

Bama's accounts receivable were recorded at $600,000.Assume that the auditor determined a sample size of 20 customer accounts and prepared confirmations to those customers.One misstatement was determined; an account recorded at $10,000 was confirmed to have a balance of $5,000. What is the projected misstatement?

• A) $5,000.
• B) $10,000.
• C) $15,000.
• D) $30,000.

---

Definitions:

Literacy And Schooling

The relationship between the ability to read and write, and formal education processes.

Cognitive Processing

Cognitive processing refers to the series of mental activities involved in acquiring, organizing, and understanding information, including perception, memory, and decision-making.

Cognitive Ability

The capacity of an individual to perform various mental activities related to learning, problem-solving, decision-making, and adapting to new situations.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.