The 4,000 Accounts Receivable of Miller Company Have a Total

question 89

Multiple Choice

The 4,000 accounts receivable of Miller Company have a total book value of $150,000.A CPA has selected and audited a sample of 100 accounts with a total book value of $3,700 and an audited value of $3,800.
-Using the mean-per-unit estimation method an auditor has properly calculated the estimated total audited value of a population as $200,000.Her sample included 200 of the population's 40,000 items.She found that,in her sample the average audited value was $1 less than the average book value.What was the average audited value in the sample?

• A)$4.
• B)$5.
• C)$6.
• D)$10.

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Definitions:

Organizer

A person who brings order, manages tasks, or arranges events and responsible for planning and execution.

Goal

An aim or desired outcome that a person or a system envisions, plans, and commits to achieve within a specified timeframe.

Energizer

Substances or activities that increase energy levels, focus, or alertness, often used to overcome fatigue or enhance performance.

Decision

The process of making a choice or finding a solution among several alternatives, often following careful thought and consideration.