A Bicycle Shop Equips 60% of Their Bikes with a Water

question 104

Multiple Choice

A bicycle shop equips 60% of their bikes with a water bottle holder. 55% of the bikes they sell have a kickstand attached to
the bike. 34% of the bikes sold have both features.
-We can tell that these two features are independent because…

• A) These two features don't have anything to do with each other, so we know they're independent.
• B) The probability of having a kickstand given that you have a water bottle (56.7%) is about equal to the probability of having a kickstand (55%).
• C) The probability of having both features (34%) does not equal the probability of having neither feature (19%).
• D) The probability of having both features is not zero; it is 34%.
• E) The probability of having either feature (81%) doesn't equal the probability of having just one feature (60% and 55%).

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, reducing its book value on the balance sheet.

Liability Account

An accounting record that captures the amount of money a firm owes to outsiders, including debts and obligations.

Credit Account Balance

A credit account balance refers to the total amount of credit available in a person's or organization's account, after considering all debits and credits.

Adjusting Entries

Documentation in financial records at the termination of an accounting period to allocate gains and expenses to the correct timeframe.