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You Are Faced with 100 Rows of Simulated Profit Data

question 59

Essay

You are faced with 100 rows of simulated profit data. You know that when using data tables for a simulation, it is helpful to calculate statistics about the data. Do you base your decisions about the data on the profit data or the statistics? What type of statistics would you run?


Definitions:

Adjusting Entries

Entries recorded in accounting logs at the end of a fiscal period for the purpose of allocating earnings and costs to their rightful period.

Note Payable

A written promissory note in which the borrower agrees to pay back a specified sum to the lender at a future date, with interest.

Unearned Fees

Income received by a business for services that have yet to be performed or delivered, considered a liability until the service is completed.

Unearned Revenue

Money received by a company for goods or services that have yet to be provided to the customer.

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