HBrown,CPA,performed a Nonstatistical Sampling Plan to Examine the Inventory Balances

question 114

Multiple Choice

H.Brown,CPA,performed a nonstatistical sampling plan to examine the inventory balances of Big Company.Brown audited 50 items from a sample and found an audited value of $18,000.The sample had a recorded value of $20,000.If the entire inventory contained 250 items and the total recorded value of the inventory was $250,000,the estimated account balance using nonstatistical estimation and projecting the error based on number of items examined was

• A) $196,800.
• B) $237,250.
• C) $225,000.
• D) $300,000.

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Definitions:

Theory of Atoms

A scientific theory that matter is composed of discrete units called atoms, which are the basic building blocks of chemical substances.

Law of Definite Proportions

A chemical law stating that a compound always contains exactly the same proportion of elements by mass.

Dalton's Atomic Theory

A foundational concept in chemistry that asserts elements are composed of tiny, indivisible particles called atoms, and that chemical reactions involve the rearrangement of these atoms.

Rutherford

Refers to Ernest Rutherford, the scientist who proposed the model of the atom with a central nucleus surrounded by electrons.