Exhibit 19-3 It Is Believed That the Median Yearly Income in a in a Suburb

question 60

Multiple Choice

Exhibit 19-3
It is believed that the median yearly income in a suburb of Atlanta is $70,000. A sample of 67 residents was taken. Thirty-eight had yearly incomes above $70,000, 26 had yearly incomes below $70,000, and 3 had yearly incomes equal to $70,000. The null hypothesis to be tested is H₀: median = $70,000.
-Refer to Exhibit 19-3. The test statistic has a value of

• A)1.00
• B)1.50
• C)2.00
• D)2.50

Know what information is and is not included in the statement of changes in equity.

Distinguish between different types of financial statements and their specific purposes.

Calculate net income using given financial data.

Identify where common shares are reported within financial statements.

---

Definitions:

Consolidated Goodwill

The excess of the purchase price over the fair value of the net assets of a subsidiary, recognized on a parent company's balance sheet when consolidating financial statements.

Consideration Transferred

The value exchanged or payment made by an acquiring entity to obtain control of another business in a business combination.

Partial Equity Method

An accounting technique used for investments, where only a portion of the investment's change in net assets is recorded.

Noncontrolling Interest

A stake in a company that is not large enough to exert control over its operations, often reflected in consolidated financial statements.