In Each of the Following Situations,indicate Whether Attribute (A)or Variables

question 64

Short Answer

In each of the following situations,indicate whether attribute (A)or variables (V)sampling is used.
1___.Observe a sample of employees at various cash registers to ensure they log in to the system before they can begin processing transactions,and subsequently log out when their shift is over to prevent unauthorized access to the cash registers.
2___.Select a sample of purchase orders and ensure they are from vendors on the approved vendor list.
3___.Select a sample of unpaid vendor invoices and determine a projected balance for accounts payable.
4___.Select a sample of perishable items from inventory to see if they have exceeded their expiration date.
5___.Select a sample of accounts receivable transactions to determine the accuracy of the current period's bad debt expense.
6___.Send confirmations of the account balance for debt obligations greater than the materiality threshold.

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Definitions:

Price Ceiling

A maximum price set by the government for particular goods and services that cannot legally be charged above to prevent prices from being too high.

Shortage/Surplus

Market scenarios where the demand for a product surpasses its available supply, leading to a shortage, or where the supply of the product is greater than its demand, resulting in a surplus.

Demand Equation

is a mathematical representation that shows the relationship between the quantity of a good demanded and its price along with other factors affecting demand.

Supply Equation

A mathematical formula used to describe the relationship between the price of a good or service and the quantity supplied, holding other factors constant.