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:

Attitude Change

A psychological process in which an individual's feelings, beliefs, or behaviors toward an object or idea are altered as a result of experience or information.

State Self-Esteem

A temporary feeling of self-worth that can fluctuate with circumstances, contrasted with overall self-esteem.

Trait Self-Esteem

A stable and enduring sense of worth or value that an individual has of themselves.

Positivity

The practice or tendency of being optimistic in attitude, focusing on the positive aspects of life.