When Combining Probabilities, to Find the Probability of One Event

question 2

Multiple Choice

When combining probabilities, to find the probability of one event OR another event, the separate probabilities should be

• A) multiplied
• B) divided
• C) subtracted
• D) added

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Definitions:

12-month Period

A 12-month period typically refers to a full year, used in financial reporting and analysis to compare performance or changes over the span of a year.

Income Summary Account

A temporary account used in the closing process to summarize the period's revenues and expenses before transferring the net income or loss to retained earnings.

Permanent Accounts

Permanent accounts refer to the balance sheet accounts whose balances are carried over into the next accounting period, including assets, liabilities, and equity accounts.

Revenue Recognition Principle

An accounting principle that dictates the specific conditions under which revenue is recognized or recorded, ensuring it's captured in the period it is earned.