Simpson Incorporated Sells Fishing Lures and Monofilament Leader Material

question 16

Multiple Choice

Simpson Incorporated sells fishing lures and monofilament leader material. During June, Simpson distributed 6,000 coupons to receive a free lure to each customer who purchased a dozen spools of monofilament leader material. Through December 31, 2017, Simpson honored 1,200 coupons redeemed. Simpson expects a total of 5,200 total coupons to be redeemed. Simpson sells lures for $1.00 each. The cost of each lure to Simpson is 45 cents. How much should Simpson report as a liability at December 31, 2017?

• A)$6,000
• B)$1,800
• C)$3,600
• D)$2,340

---

Definitions:

Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two related samples, matched samples, or repeated measurements to assess differences in medians.

Triglyceride Levels

A measure of the amount of triglycerides, a type of fat, in the blood, which is an indicator of metabolic health.

SPSS Output

SPSS output refers to the results generated by the Statistical Package for the Social Sciences, a software used for statistical analysis.

Intense Exercise

Physical activity that requires a high level of effort, causing the heart rate to increase significantly and often aimed at improving physical fitness quickly.