Two Stores Sell a Certain Product

question 137

Multiple Choice

Two stores sell a certain product. Store A has 39% of the sales, 5% of which are of defective items, and store Bhas 61% of the sales, 3% of which are of defective items. The difference in defective rates is due to differentlevels of pre-sale checking of the product. A person receives one of this product as a gift. What is theprobability it is defective? Round to the nearest thousandth when necessary.

• A) 0.038
• B) 0.04
• C) 0.019
• D) 0.44

Understand the classification of cash flows and the nature of investing, financing, and operating activities.

Grasp the accounting equation and its application in financial reporting.

Know the concepts and assumptions foundational to financial accounting practice.

Understand the ethical requirements and considerations in accounting practices.

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Definitions:

Injunction

A judicial order requiring a person or entity to do or cease doing a specific action.

Contract Law

A branch of law dealing with the formation, enforcement, and interpretation of agreements between parties.

Discharged by Agreement

The termination of contractual obligations through mutual consent of the parties involved.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of each party.