Which of the Following Statements Is Not True Regarding Variables

question 73

Multiple Choice

Which of the following statements is not true regarding variables sampling?

• A)Two approaches to variables sampling are monetary unit sampling and classical variables sampling.
• B)Both statistical and nonstatistical approaches to variables sampling can be used under GAAS.
• C)The objective of variables sampling is to estimate either the true balance or the extent of misstatement in an account balance or class of transactions.
• D)Variables sampling is appropriate when the distribution of the population is binary in nature.

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Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business, minus any costs of completion, disposal, and transportation.

Inventory Figure

The total value of a company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.

Financial Position

Financial position is the status of a person's or entity's assets, liabilities, and equity at a given point in time, providing a snapshot of financial health.