_____ Sampling Methods Use Normal Distribution Theory and the Central

question 59

Multiple Choice

_____ sampling methods use normal distribution theory and the central limit theorem to provide a range estimate of the account balance or class of transactions or the misstatement in the account balance or class of transactions.

• A)Attributes.
• B)Classical variables.
• C)Nonstatistical.
• D)Monetary unit sampling (MUS).

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Definitions:

Cash Inflows

Money received by a business from its various activities, like sale of goods, services, or obtaining a loan.

Cash Outflows

The movement of money out of a business as expenditures, payments, or investments, which reduce the company's cash balance.

Profitability Index

A calculation that measures the profitability of an investment, determined by dividing the present value of future cash flows by the initial investment cost.

NPV Ranking

A method of evaluating investment opportunities by ranking them based on their Net Present Value, which estimates the present value of future cash flows minus initial investments.