In Testing the Reasonableness of Account Balances,MUS Sampling Is Preferred

question 23

Multiple Choice

In testing the reasonableness of account balances,MUS sampling is preferred because it provides a smaller sample size.Which of the following are limitations of using the MUS sampling method?

• A)tests for overstatement.
• B)zero and negative amounts.
• C)numerous misstatements.
• D)all of the above.

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Definitions:

Federal Unemployment Tax Rate

The rate at which employers are taxed by the federal government to fund the unemployment benefit programs.

Current Liabilities

Current Liabilities are a company's debts or obligations that are due to be paid within one year and are listed on the company’s balance sheet. They typically include accounts payable, short-term loans, and other accrued liabilities.

Principal Repaid

The amount of loan or debt's original borrowing that has been or is being paid back, excluding interest payments.

Long-Term Notes

Debt securities or loans with maturities extending beyond one year, typically used for long-term financing needs.