Your Supervisor Has Asked You to Analyze All of the Sales

question 13

Multiple Choice

Your supervisor has asked you to analyze all of the sales receipts for your company for the entire year to determine the average sales per customer, depending on whether the customer used a credit card, or another form of payment. What would your dependent variable be in this case and how would you label it?

• A) Credit card = 1, other payment method = 0
• B) Average sales = 1 and credit card = 0
• C) Credit card = 1, cash = 2, debit card = 0
• D) We cannot determine which variable is dependent from the information provided.

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Definitions:

Diluted Earnings Per Share

A metric that shows the quality of a company's earnings per share if all convertible securities were exercised.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, typically with fixed dividends.

Disclosure

The act of making information known, especially financial data in the context of accounting, to ensure transparency and informed decision-making.

Accounting Principle

Fundamental concepts or guidelines that govern the field of accounting and instruct the recording and reporting of financial transactions.