Changing from a Sampling Plan Using Random Selection with Replacement

question 61

Multiple Choice

Changing from a sampling plan using random selection with replacement to random selection without replacement has what effect on the required sample size?

• A) Increases.
• B) Decreases.
• C) No effect.
• D) An indeterminate effect.

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Definitions:

Merchandise Inventories

Goods, either manufactured or purchased, held for sale in the regular course of business.

Direct Method

A cash flow statement approach that itemizes actual cash flows from operating activities, rather than adjusting net income.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to find the net cash from operating activities.