A) a Class Has Been Omitted
B) Class Width Is

question 20

Multiple Choice

$$\begin{array}{l}\text { State the reason why the following frequency distribution is incorrectly constructed. }\\\begin{array} { l c } \text { Class } & \text { Frequency } \\\hline 124 - 129 & 1 \\130 - 135 & 7 \\142 - 147 & 11 \\148 - 153 & 14\end{array}\end{array}$$

• A) a class has been omitted
• B) class width is not uniform
• C) there is no percent column
• D) class limits overlap

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Definitions:

Cash Discounts

These are deductions allowed by sellers on invoice amounts if the buyer pays promptly within a specified period, serving as an incentive for early payment.

Perpetual Inventory System

An inventory management method where records are continuously updated to reflect buys, sells, and stock levels in real-time.

Gross Method

An accounting practice where discounts for early payment are not considered until they are actually taken by the purchaser.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, including the repayment period, interest rate, and penalties for late payment.