Which of the Following Transactions Does Not Affect Gross Profit

question 129

Multiple Choice

Which of the following transactions does not affect gross profit?

• A)A customer returning merchandise that was sold for a profit.
• B)The collection of cash on an account receivable,which was paid for by the customer within the discount period.
• C)The journal entry to record bad debt expense.
• D)Accepting a credit card for a sale and paying a service fee to the credit card company.

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Definitions:

Statistical Power

Probability of rejecting the null hypothesis when the alternative hypothesis is true.

Nonparametric Tests

Statistical tests that do not assume a specific distribution of the data, often used when data doesn't meet assumptions necessary for parametric testing.

Normally Distributed

Describes a dataset whose distribution forms a symmetrical bell-shaped curve when plotted, characterized by data clustering around a mean.