If Two Events Are Mutually Exclusive, What Is the Probability

question 101

Multiple Choice

If two events are mutually exclusive, what is the probability that both occur at the same time?

• A) 1.00
• B) 0
• C) 0.50
• D) cannot be determined from the information given

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Definitions:

Credit Sales

Sales transactions where the payment is deferred to a future date, typically resulting in the creation of accounts receivable.

Allowance for Doubtful Accounts

An allowance for doubtful accounts is a contra-account that reduces the total receivables on the balance sheet by the amount that is estimated to be uncollectible.

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect because customers default on their payments.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable and bad debts.