In Which of the Following Circumstances Should Sampling Be Used

question 93

Multiple Choice

In which of the following circumstances should sampling be used?

• A) The individual is not concerned with an extremely precise estimate of the attribute being examined.
• B) It is very difficult to define and identify the entire population.
• C) The population comprises a small number of items.
• D) An individual is interested in examining all occurrences of a single type in the population.

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Definitions:

Accruals

The accounting process of recognizing revenues and expenses when they are incurred, regardless of when cash transactions occur.

Economic Forces

Factors such as inflation, interest rates, and unemployment that influence the performance of the economy and impact financial markets.

Aggressive Working Capital Financing

A strategy that involves taking on higher risk to finance working capital, potentially leading to higher returns or increased financial distress.

Term Structure

The relationship between interest rates or bond yields and different terms (or maturities) on the debt.