I Have a Habit of Getting Up Before the Sun

question 58

Short Answer

I have a habit of getting up before the sun rises. My socks are all mixed up in the drawer, which contains 8 blue and 18 grey socks. I reach into the drawer and grab some socks in the dark. How many socks do I need to take from the drawer to be sure that I have a matched pair?
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__________ socks

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Definitions:

Write-Down

A reduction in the book value of an asset when its market price falls below its carrying value on the balance sheet.

Gross Profit

The difference between revenue and the cost of goods sold, representing the basic profitability of the products or services sold by a company.

Pretax Income

The income of a business before income taxes are deducted.

Understated

Describes a financial statement element that is reported at a figure less than its actual value, potentially misleading users of the statements.