What type of testing are ratios?

Q: What are the characteristics of Statistical Sampling?

A: Sampling: Sampling refers to testing some part of the entire population, based on some key features…

Q: When is Attribute sampling used?

A: Attributes sampling is a statistical sampling method used to estimate the rate of control procedure…

Q: Why is it crucial to estimate the MARR correctly?

A: It is the minimum return rate on the project which an entity computes prior to the staring of the…

Q: What are the characteristics of Non-Statistical Sampling?

A: Non statistical sampling is a sampling method which is not based on the principles of statistics.…

Q: What is Ratio Analysis? Briefly explain

A: Ratio Analysis: It is the procedure of analyzing and looking at money related data by determining…

Q: What are the two sampling risks associated with attributes sampling? What types of losses…

A: Sampling risk is a risk that arises when the judgments based on the sample varies from the…

Q: In an MUS application, how is the population size defined? What is the relationship between…

A: MUS stands for Monetary Unit Sampling. It defines the sampling unit as an individual dollar in an…

Q: Create a sample problem of an External Rate of Return.

A: External rate of return(ERR) It is the the rate of return  on a venture where any "excess” cash  is…

Q: What is Attribute Sampling?

A: Auditing:   Auditing refers to the procedure for providing independent report over the presentation…

Q: What is common size analysis?

A: Answer: Common size analysis that measures the percentage sums of each element on the financial…

Q: What is Non-Sampling Risk?

A: Sampling: It is a procedure used by the auditor to analyze the predetermined number of observations…

Q: What is the difference between covariance and correlation?

A: Co-variance: A co-variance is nothing but a descriptive measure of linear interaction intensity…

Q: How does Block Sampling compare to other sampling methods?

A: Block sampling is a sampling technique in auditing. Under this method, a series of items is selected…

Q: What are the two primary factors that are difficult to estimate in sensitivity analysis?

A: Answer: Sensitivity analysis is commonly used in determining the interactions in a system or even a…

Q: What functions are used in conjunction with Classic Variable Sampling?

A: Classic variable sampling is a testing for a dollar amount. In this sampling, value in sample gives…

Q: How does the acid-test ratio differ from the current ratio?How are they similar?

A: Difference: The acid-test ratio and the current ratio are both measures of the short-term debt…

Q: How does Sampling Risk compare to Non-Sampling Risk?

A: Risk:   It is a probability of the financial statements being materially incorrect even though the…

Q: Explain the coefficient of variation?a

A: The coefficient of variation (CV) may be a statistical measure of the scattering of information that…

Q: coefficient of correlation is used to obtain what?

A: The correlation coefficient could be a measurable degree of the quality of the connection between…

Q: Explain the relationship between the conventionaL PW criterion and the B/C ratio?

A: The relationship between the cost of the project and benefits earned from the project is measured by…

Q: What is the relationship between the B/C ratio and the PW criterion?

A: The question is based on the concept of benefit to cost ratio analysis and present worth criteria…

Q: What are the differences and similarities between the Sharpe and Treynor measures?

A: Each asset or portfolio has a separate level of return and associated risk in response to the…

Q: Construct a sample problem of External Rate of Return (ERR).

A: External rate of return (ERR) or Internal rate of return (IRR) is the rate at which Present Value of…

Q: What would the effect of the failure in the ratio measurement?

A: Ratio measurement in terms of financial world depicts that a single accounting figure by itself may…

Q: What factors affect sample size?

A: Definition:   Sampling: Sampling allows an individual to obtain information about the population of…

Q: What is the meaning of acid test ratio?

A: Acid Test Ratio: Acid Test ratio or Quick Ratio is ratio which is measure or indicate the capacity…

Q: What are the characteristics of Probability Proportionate to Size (PPS) sampling?

A:

Q: Define monetary unit sampling and explain its importance inauditing. How does it combine the…

A:

Q: Which of the following would be designed to estimate a numerical measurement of a population, such…

A: Monetary value is the value which will be received by a seller when the seller sells goods or…

Q: What does the acid test ratio state? Meaning what do the results mean?

A: Acid test ratio is also known as liquid ratio or quc ratio. This is calculated by dividing liquid…

Q: Which type of chart would be best for representing the correlation between two ilems!

A: Answer

Q: How is the acid-test ratio calculated, and what does it signify?

A: The company calculates various ratio for measuring the solvency, liquidity & profitability of…