Find all School-related info fast with the new School-Specific MBA Forum

It is currently 27 Aug 2014, 19:17

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Recent audits revealed that BanqueCard, a credit service,

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
User avatar
Joined: 19 Feb 2004
Posts: 415
Location: Lungi
Followers: 1

Kudos [?]: 1 [0], given: 0

GMAT Tests User
Recent audits revealed that BanqueCard, a credit service, [#permalink] New post 19 Apr 2004, 00:09
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
6. Recent audits revealed that BanqueCard, a credit
service, has erred in calculating the interest it charges
its clients. But BanqueCard's chief accountant
reasoned that the profits that the company shows
would remain unaffected by a revision of its clientsтАЩ,
credit statements to correct its previous billing
errors, since just as many clients had been overcharged
as undercharged.

Which of the following is a reasoning error that the
accountant makes in concluding that correcting its
clients' statements would leave BanqueCard's profits
unaffected?
(A) Relying on the reputation of BanqueCard as a
trustworthy credit service to maintain the
company's clientele after the error becomes
widely known
(B) Failing to establish that BanqueCard charges
the same rates of interest for all of its clients
(C) Overlooking the possibility that the amount by
which BanqueCard's clients had been over-
charged might be greater than the amount by
which they had been undercharged
(D) Assuming that the clients who had been over-
charged by BanqueCard had not noticed the
error in their credit bills
(E) Presupposing that each one of BanqueCard's
clients had either been overcharged or else
had been undercharged by the billing error

7. Not Scored
SVP
SVP
User avatar
Joined: 30 Oct 2003
Posts: 1798
Location: NewJersey USA
Followers: 3

Kudos [?]: 31 [0], given: 0

GMAT Tests User
 [#permalink] New post 19 Apr 2004, 06:44
B and C are the contenders. C is good because as per B even if interest rate are different the total amount in error could be different or same depending on how much the peple spent.
  [#permalink] 19 Apr 2004, 06:44
    Similar topics Author Replies Last post
Similar
Topics:
The recent clinical trials have revealed that royQV 4 15 Aug 2014, 22:12
A recent series of newspaper articles revealed that shrive555 1 16 Dec 2010, 10:23
A recent study reveals that television advertising does not vaivish1723 1 30 Jun 2009, 22:46
1 Recent audits revealed that BanqueCard, a credit service, spriya 4 02 Aug 2008, 11:29
A recent study reveals that television advertising does not eastcoaster9 12 16 Sep 2005, 09:05
Display posts from previous: Sort by

Recent audits revealed that BanqueCard, a credit service,

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.