As a General Rule of Thumb,if the Items Selected for a Sample

question 36

True/False

As a general rule of thumb,if the items selected for a sample are not replaced and the sample size is less than 5% of the population,the binomial distribution can be used to approximate the hypergeometric distribution.

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Definitions:

Receivables Collected

The amount of money received from customers in payment of accounts receivable during a given period.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust the balance of accounts.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and written off as a loss.

Quality of Receivables

An assessment of the likelihood that the receivables will be collected on time, reflecting the creditworthiness of a company's customers.