Ranger,CPA Used Nonstatistical Sampling to Examine the Accounts Receivable Balances

question 82

Multiple Choice

Ranger,CPA used nonstatistical sampling to examine the accounts receivable balances of Cowboy,Inc.He audited a sample of 150 items and found an audited value of $5,000 less than the recorded balance of $25,000.The entire account balance contained 2,000 items and had a total recorded value of $350,000.Using nonstatistical methods and assuming that Ranger used the ratio of audited value to recorded value to estimate the account balance,the estimated total account balance is

• A)$345,000
• B)$330,000
• C)$295,000
• D)$280,000

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Definitions:

Stock Purchase Plan

A program offered by a company allowing employees to buy shares of the company's stock, often at a discount, as part of their benefits package.

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A formula designed to assess the efficiency and effectiveness of an individual's or organization's performance based on various parameters.

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Financial Responsibility

The obligation to manage money, assets, or resources in an efficient, ethical, and sustainable manner.