If a Customer's Account Was Recorded at $45,000,the Audited Value

question 9

Multiple Choice

If a customer's account was recorded at $45,000,the audited value was $30,000,and the sampling interval was $30,000,the projected misstatement would be:

• A)$10,000.
• B)$15,000.
• C)$20,000.
• D)$30,000.

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Definitions:

Cash Flow

The gross amount of capital circulated in and out of an enterprise, directly affecting its ability to meet immediate expenses.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Closing The Books

The process of finalizing all accounts and preparing financial statements at the end of an accounting period.

Transactions

Acts of buying, selling, or exchanging goods, services, or financial assets in the market.