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

question 61

Multiple Choice

The 4,000 accounts receivable of GHI Company have a total book value of $60,000.Bob Smith,CPA,has selected and audited a sample of 100 accounts with a total book value of $1,600.Using the mean-per-unit estimation technique,Smith has properly estimated a projected misstatement of a $8,000 overstatement for the entire population.The audited value of Smith's sample is:

• A)$1,300
• B)$1,400
• C)$1,600
• D)$1,800

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Definitions:

Cognitive Assessment Techniques

These are methods or tools used to evaluate an individual's mental processes, including memory, attention, problem-solving skills, and other aspects of cognition.

CPFR

Collaborative Planning, Forecasting, and Replenishment, a business practice where trading partners work together to match supply and demand, improving inventory efficiency.

S&OP

Sales and Operations Planning; a process to align the company's demand plans with its production capabilities, operational and financial plans.

Logistical Problems

Issues or complications arising in the planning, implementation, and coordination of moving goods and services from producers to consumers.