The True Proportion of Accounts Receivable with Some Kind of Error

question 41

Multiple Choice

The true proportion of accounts receivable with some kind of error is 0.02 for Venal Enterprises.If an auditor randomly samples 50 accounts receivable,which is the Excel probability that fewer than two will contain errors?

• A)=BINOM.DIST(2,50,0.02,1)
• B)=BINOM.DIST(1,50,0.02,1)
• C)=BINOM.DIST(2,50,0.02,0)
• D)=BINOM.DIST(1,50,0.02,0)

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Definitions:

Guarantee

A formal assurance, typically provided by the seller, that certain conditions, such as product quality or performance, will be met.

Efficient Operations

Activities and processes designed to achieve maximum productivity and minimize waste, enhancing the overall effectiveness of a business or organization.

Savings Accounts

Bank accounts that earn interest over time, allowing individuals to save money for future use.

Checking Accounts

Bank accounts that allow for easy access to funds through checks, debit cards, and electronic transfers.