What Is the Primary Drawback with Respect to the Use

question 78

Multiple Choice

What is the primary drawback with respect to the use of sampling?

• A)Individuals may fail to obtain a true understanding of the question they are examining.
• B)The time spent in planning and selecting the sample may exceed the time savings from examining only a subset of the items.
• C)The conclusion reached by examining a sample of items may differ from the conclusion that would be reached if the entire population were examined.
• D)Sampling cannot be used to examine account balances that are material to the financial statements.

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Definitions:

Balance Sheet

An overview report showing a business's assets, liabilities, and equity held by shareholders at a specific time.

Adjusted Trial Balance

A statement of all debits and credits in a double-entry accounting system, adjusted for any journal entries, used to verify the balance of accounts before producing financial statements.

Financial Statement Column(s)

Columns in financial statements where various financial data are reported, such as assets, liabilities, revenues, and expenses.

Net Income

The net income of a company once all costs and taxes are subtracted from the total income.