An Auditor Knows from Past History That the Average Accounts

question 59

Short Answer

An auditor knows from past history that the average accounts receivable for ABC Company is $441.27 with a standard deviation of $555.48.If the auditor takes a sample of 100 accounts,what is the probability that the mean of the sample will be within $100 of the population mean?

---

Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company's accounts receivable are collected during a specific period.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Accounts Receivable

The money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated by dividing net credit sales by the average accounts receivable.