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:

Best Efforts Basis

An agreement where an underwriter promises to make a best effort to sell as much of an offering as possible, but does not guarantee the sale of all securities offered.

Fixed Commission

A specified, unchanging fee charged for services, especially in financial transactions like stock trading.

Regulatory Bodies

These are government agencies or independent institutions that supervise and regulate specific industries or economic activities to ensure compliance with laws and standards.

Inactive Market

A market in which there are few transactions, leading to less liquidity and greater price fluctuations.