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:

Nimble Tactics

Agile and adaptable strategies designed to respond quickly to change and capitalize on new opportunities.

Durability

The quality of being able to withstand wear, pressure, or damage; the ability of a product or material to last a long time without significant degradation.

Proprietary Barriers

Restrictions established through the ownership of patents or copyrights that limit competition.

Bootstrapping

A method of financing a startup or new venture by using personal funds or operating revenues rather than seeking external investment.